BUSINESS ECONOMICS –V (SEM-V)

MODULE –I
MULTIPLE CHOICE
1) Since 1951, India has been a ------ economy.
a) Socialist b) Mixed c) Capitalist d) Feudal
2) The fiscal crisis faced by the Indian economy in 1990s
was caused primarily by
a) Widening gap between imports and exports
b) Difference between savings and investments
c) Widening gap between government expenditure
and revenue
d) Difference between aggregate demand and aggregate
supply
3) Which of the following factors was one of the primary
causes of the balance of payments crisis in 1991?
a) Low rate of inflation
b) Surplus budget
c) High interest rate
d) Rising oil price and poor remittances
4) One of the policies adopted to make public sector more
efficient was
a) Increasing operational control on public enterprises by
the government
b) Maintaining public sector monopoly
c) Increasing government’s shareholding in public
enterprises
d) Raising fresh equity from the market
5) Which of the following was not a feature of the New
Industrial Policy 1991?
a) Permitted foreign investment
b) Removal of MRTP limit
c) Setting up of new public sector enterprises
d) Abolition of industrial licensing
6) Which of the following measures did not form a part of
fiscal correction in 1991?
a) Raising tax rates
b) Reducing budgetary support to public enterprises
c) Increasing tax collection
d) Cutting down subsidies
7) Which of the following measures was implemented by
the government in order to reduce current account deficit?
a) Devaluation of the rupee
b) Revaluation of the rupee
c) Strict exchange control
d) Import restrictions were increased
8) The fiscal situation in India had been under mounting
pressure especially since _____ due to widening gap
between the revenue and expenditure of the government.
a) 1991
b) 1980
c) 1970
d) 1990
9) As a consequence the fiscal deficit rose to ____ percent
of GDP in 1990-91.
 a) 8.7%
b) 7.7%
c) 9.7%
d) 29%
10) The CRR was raised from to ___ in July 1989.
a) 15%
b) 14%
c) 13%
d) 20%
11) which of the following sentences would best describe
the Indian economy in 1990-91
a) High inflation low foreign exchange reserves
b) Low inflation low foreign exchange reserves
c) Huge current account deficit fiscal surplus
d) Current account surplus hug fiscal deficit
12) One of the measure adopted to control inflation in
1990-91 was __
a) Raising CRR and SLR
b) Lowering of CRR and SLR
c) Lowering of bank rate
d) Restricting imports of essential commodities
13) Which of the following measures was adopted in 1991
to stabilise the economy
a) Control of inflation
b) Banking sector reforms
c) Capital market reforms
d) Insurance reforms
14) The FDI limit in the insurance sector in India is
a) 49%
b) 100%
c) 79%
d) 26%
15) Which of the following is an important banking sector
reform introduced in 1991?
a) Introduction prudential norms
b) RBI determined interest rates
c) Raising SLR and CRR
d) SLR and CRR
16) Capital adequacy norms help to
a) Maintain financial stability
b) Control inflation stability
c) Reduce balance of payments deficit
d) Increase bank’s profits
17) Capital market reform includes
a) Deregulation of interest rates
b) Introduction of capital adequacy norms
c) Setting up of SEBI
d) Special recovery tribunals
18) Currently the government’s expenditure on public
health is only _____ of GDP.
a) 1.15%
b) 2.15%
c) 3.15%
d) 0.15%
19) The Indian public health standards were published in
____.
a) 2007
b) 2008
c) 2009
d) 2010
20) National health mission was launched in
____________.
a) 2013
b) 2014
c) 2015
d) 2016
21) Universal immunisation programme was launched in
_____.
a) 1985
b) 1999
c) 1986
d) 1988
22) Pulse polio programme in order to eradicate polio, the
pulse polio programme was launched in _______.
a) 1996
b) 1995
c) 1999
d) 1994
23) The Rashtrya Arogya Nidhi was set up in____ to
provide financial support to patients .
a) 1997
 b) 1998
c) 2000
d) 1995
24) Increase life expectancy to 70 years by ______.
a) 2025
b) 2026
c) 2027
d) 2023
25) Reduce prevalence of blindness to 0.25 per 1000 by
__.
a) 2026
b) 2025
c) 2027
d) 2030
26) Which of the following is a programme aimed at
controlling the spread of communicable diseases?
a) National TB control programme
b) National mental health programme
c) National oral health programme
d) National programme for prevention and control of
deafness
27) The ______ provides a reference point for the
functioning of the public health centres.
a) Indian public health rules
b) Indian public health standards
c) Indian public health guidelines
d) Indian public health manual
28) AIIMS are at the ____ level of public health
infrastructure.
a) Primary
b) Tertiary
c) Secondary
d) Primary and secondary
29) Community health centres are located at the _____
level of public health infrastructure.
a) Secondary
b) Tertiary
c) Primary
d) Only tertiary
30) The scheme for improving access to secondary
education is _____.
a) Kasturba Gandhi Balika Vidyalaya
b) Rashtriya madhyamik shiksha abhiyan
c) Model schools scheme
d) National programme for education of girls at
elementary level
31) The scheme for providing residential schools as
elementary level for girls is __
a) Kasturba Gandhi Balika Vidyalaya
b) Model schools scheme
c) National programme for education of girls at
elementary level
d) Rashtriya madhyamik shisha abhiyan
32) Which of the following is not true of the right to
education act?
a) Free education to all children between 6 and 14 years
b) It was enacted in 2009
c) It is an adult literacy programme
d) It is aimed at providing quality elementary education
33) Accounting to the human development report 2016
India’s HDI rank is ___ among 188 countries.
a) 141
b) 131
c) 125
d) 100
34) Which of the following describe the change in India
after 1991?
a) Reduced private investment in education and health
b) Increased formal jobs creation
c) Reduced subsidies to social sector in relative
terms
d) Increased job security
35) Rashtriya swasthya bima yojana provides health
insurance coverage to
a) Only women and children
b) The entire population
c) Workers in the organized sector
d) Workers in the unorganized sector
36) India has made remarkable achievements in terms of
economic growth since the economic reforms of _______.
 a) 1990
b) 1991
c) 1992
d) 1993
37) Digitalization of ration cards using Aadhar for
authenticating delivery of benefits in ______ goal.
a) Second
b) First
c) Fourteen
d) seventeen
38) Conserve and sustainably use oceans seas and
marine resources in _________ goal.
a) 14
b) 17
c) 09
d) 05
39) Build resilient infrastructure promote inclusive and
sustainable industrialization and foster innovation.
a) 05
b) 09
c) 17
d) 14
40) Ensure healthy life and promote well being for all ____
a) Goal 3
b) Goal 14
c) Goal 17
d) Goal 09
41) Which of the following is not included in UNDP’s HDI
composite?
a) Health
b) Culture
c) Education
d) Standard of living
42) Sustainable development includes which of the
following
a) Economics development
b) Social development
c) Environment development
d) Economics, social and environment development
43) _____ is responsible for coordinating the SDGS in
India.
a) NITI Aayog
b) Planning commission
c) Ministry of finance
d) Ministry of human resources development
44) _____ is an initiative to make India a manufacturing
hub.
a) Make in India
b) NIT Aayog
c) Skill India
d) Invest India
45) The scheme for skill training of youth to be
implemented through the national skill development
corporation is____.
 a) National skill development mission
b) Pradhan mantra kaushal vikas yojana
c) Skill loan scheme
d) Loan scheme
46) Invest in India was set up in _________ year.
a) 2010
b) 2014
c) 2019
d) 2015
47) Skill India was launched in _____.
a) July 2015
b) July 2016
c) July 2014
d) July 2010
48) Economic development is ____ concept.
a) Broader
b) Small
c) Narrow
d) Large
49) Invest India is dedicated to promote ________
investment.
a) Foreign
b) Domestic
c) International
d) National
50) The FDI policy ______ has given a boost to foreign
investment in start ups.
 a) 2016
b) 2017
c) 2018
d) 2015
51) The New Industrial policy 1991 gave _____ boost to
FDI in India.
a) Major
b) Smaller
c) Important
d) Special
52) Which country has been the highest source of FDI to
India during April-December 2017?
a) Japan
b) Mauritius
c) Singapore
d) USA
53) Which of the following sectors has received the
highest FDI equity investment in India during April –
December 2017?
a) Telecommunication
b) Software
c) Retail
d) Banking
54) Which of the following is not one of the benefits of
FDI?
a) Transfer of technology
b) Culture of consumerism
 c) Infrastructure development
d) Sectoral development
55) In the NIP 1991 the government introduced automatic
approval of up to 51% of foreign ownership in ____
priority.
a) 34
b) 33
c) 43
d) 23
56) The united nations conference on trade and
development ranked India as the _____ most favourable
foreign investment destinations in 2016
a) 9th
b) 14th
c) 10th
d) 7th
57) Many multinational companies operating in India since
the ______ period
a) British
b) Before independence
c) After independence
d) Post independence
58) FDI in retail sector in India has raised a debate on
______ effects on retail sector.
a) Negative
b) Positive
c) Mixed
 d) Same
59) Foreign currency deposits of ________ citizens of the
country.
a) Non- resident
b) Resident
c) Resident as well as non resident
d) Only resident
60) Which of the following best describes horizontal
foreign direct investment?
a) FDI in the same industry abroad as the foreign
investor firm
b) Long term lending to foreign firm
c) FDI into industry that uses the firm’s output
d) FDI into industry that inputs to the firm
61) Fiscal deficit was brought down from _____ of GDP in
1990-91 to 4.9% in 1995-96.
a) 7.7%
b) 6.7%
c) 7.1%
d) 7.5%
62) The bank rate was raised to ___ percent in 0ctober
1991 to curb excessive liquidity.
a) 12%
b) 11%
c) 7.7%
d) 10%
63) National Rural Employment Guarantee Act ___.
 a) 2006
b) 2005
c) 2007
d) 2003
64) According to census 2011, youth population in the age
group 15-24 in India constitutes 19.1% of total
population .In 2020, this will reach ____.
a) 34.33%
b) 43.33%
c) 23.33%
d) 13.33%
65) Sub centres are located in underdeveloped and
remote rural areas, each covering population of 3000 to
___ population.
a) 15000
b) 5000
c) 25000
d) 35000
66) Community health centres are primarily in semi-urban
areas covering between __ and ___people.
a) 8000 to 12000
b) 80000 to 120000
c) 18000 to 24000
d) 28000 to 30000
67) The united nation general assembly in September
2015, adopted the ____ Agenda for sustainable
development that includes 17 sustainable development
goals also called global goals.
a) 2030
b) 2040
c) 2025
d) 2022
68) MNCs are an important form of contact between more
and less ______ countries
a) Developing
b) Under developed
c) Developed
d) Only developing
69) The abolition of FIPB , the FDI policy ____.
a) 2016
b) 2017
c) 2018
d) 2020
70) Greenfield foreign investments are beneficial to the
___ country.
a) Host country
b) Foreign country
c) Only host country
d) Only foreign country
 Business Economics

Model -1 Macro Economic Overview of India

1. L P G means___________________
a. Liberalisation Personalization Globalisation
b.  Liberalisation Privatisation Globalisation
c.  Localisation Privatisation Globalisation
d.  None of the above
2)  social infrastructure does not include________________.
a.  agriculture
b.  education
c.  Family Welfare
d.  none of the above
3)  The  SDGs came   into effect in __________________.
a. January 2015
b.  January 2016
c.  January 2017
d.  January 2018
4)   Sustainable development  goals have total of________ goals.
a.  15
b.  16
c.  17
d.  18
5)  The logo of” Make in India”is_____________________
a. Lion made of gear wheels
b.  Tiger made of gear wheels
c.  Cheetah  made of gear wheels
d.  none of the above
6)   open defecation free is a part of_______________.
a.  make in India
b.  Swachha Bharat mission
c.   invest in India
d.  all the above

7.The SDGS  replace the__________________

a.  Millennium development goals (MDGs)
b.  milestone development goal (MDGs)
c.  Millennium development governments (MDGs)
d. None the above
8.  The sustainable development goals (SDGs),otherwise known as the _____________.
a.  International goals
b.  world   goals
c.  Global goals
d.  None the above
  9.U N D P refers  to ______________________________.
a. United Nations development program
b.  United Nations development project
c.  United Nations department program
d. None of the above
10. ___________________ launched  The make in India initiative On September 25, 2014
a. Ms Smriti Irani
b.  Mr Arjun Jaitley
c.  Mr Rajnath Singh
d.  None the above
11. D I P P  refers to  ____________________________,.
a. department of investment policy and promotion
b. department of industrial policy and promotion
c. department  of  industrial  program and promotion
d.  None the above
12.  project approved by foreign investment promotion board(FIPB)  is_______________
a.  Coca-Cola
b.  General Electric
c.   McDonald's
d.  all the above
13.  since  1951 Indian has been  a ___________ economy 
a.  socialist       
b.  mixed
c.  capitalist
d.  feudal
14.  the fiscal crisis faced by the  Indian economy in 1990 was caused primarily by 
a. Widening gap between imports and export
b.  differences between saving and investment
c.  widening gap  between Government expenditure and revenue
d.  differences between aggregate demand and aggregate supply
15. which of the following factors was one of the the primary causes of the balance of payment
crisis in 1991?
a. low rate of inflation
b.  surplus budget
c.  high interest rate
d.  rising oil price and poor remittances
16. which of the following sentence would  best describe the Indian economy in 1990- 91?
a. high inflation, no foreign exchange reserves
b.  low inflation low foreign exchange reserves
c.  huge current account   deficit fiscal surplus
d.  current account surplus huge  fiscal deficit
17. which of the following measures was adopted in 1991 to stabilize the economy?
a.  banking sector reforms
b.  capital market reforms
c.  control of inflation
d.  insurance  reforms
18. one of the  measures adapted to control inflation in 1990- 91 was______________.
a.  lowering of CRR and SLR
b. lowering of bank rate
c.  rising CRR and SLR
d.  restricting imports of essential commodities 
19.  which of  the following   measures  did not form a part of  fiscal correction in 1991?
a.  increasing tax collection
b.  cutting down subsidies
c.   reducing budgetary support to to public Enterprises
d.  rising tax rates
20.   which of of the following measures was implemented by the government in order to reduce
Current account deficit?
a.  revaluation of the Rupee
b.   Strict  exchange control
c.  devaluation of the Rupee
d.  import restriction where increase
21.   structural reforms are
a.  long term measures
b.  improve the supply side of the economy
c.  remove growth bottlenecks
d.  all the above
22.  which of the following was not a feature of the new industrial policy 1991?
a.  Abolition of industrial  licensing
b. Setting  Up of new public sector enterprises
c. Permitted foreign investment
d.  removal of MRTP limit
 
23)  one of the  policies adopted to make public sector more efficient was
a.  Rising fresh equity  from the market
b.  increasing governments  share holding in public Enterprises
c.  maintaining public sector monopoly
d.  increasing operational control on public Enterprises by the government
24)  which of the following is an important banking sector reform introduce in 1991?
a.  rising S L R  and CRR 
b. RBI determined  interest rates
c.  introduction of Prudential norms
d.  none of the above
25)  capital adequacy norms help to__________
a.  increase banks profits
b.  maintain  financial stability
c.  control inflation
d.   reduce Balance of payments deficit
26)  capital market reforms  includes ___________.
a. setting up of SEBI
b.  special recovery tribunals
c.  introduction of capital adequacy norms
d.  deregulation of interest rates
27)  the FDI limit in the Insurance sector in India is______.
a. 100% 
b.  79%
c.  49%
d.  26%
28) Which of the following is true of social infrastructure?
a.  it includes the education and health network
b.  it is aimed at improving quality of life
c.  it is an investment in human capital
d.  all the above
29)  which of the following describes  the change in India after 1991?
a.  reduce private investment in education and health
b.  increased job security
c.  reduced subsidies   to social sector in relative terms
 d.  increased formal jobs creation
30)  according to the human development report 2016, India's HDI rank is___________ is
among 188 countries
a.  131
b.   125
c.  141
d.   100
31)  which of the following is not true of the right to education act? 
a. free education to all children between 6 and 14 years
b.  it was enacted in 2009
c.  it is an adult literacy program
d.  it is aimed at providing quality elementary education 
32) The scheme for providing residential schools as elementary level for girls is
a.  national programme for education of girls at elementary level
b.  model school scheme
c.  rashtriy Madhyamik Shiksha Abhiyan
d.  Kasturba Gandhi Balika Vidyalaya
33)  The scheme for improving access to  secondary education is __________.
a. National programme for education of girls at elementary level
b.  model schools scheme
c.  rashtriy Madhyamik Shiksha Abhiyan 
d. Kasturba Gandhi Balika Vidyalay
34) Community Health Centre are located at the____________ level of Public Health
infrastructure.
a.  primary
b.  secondary
c.  tertiary
d.  none of these
35)  AIIMS   are at the the___________  level  of Public Health infrastructure.
a.  primary
b.  secondary
c.  tertiary
d. none of these
36)  T thehe________________provides a reference point for the  functioning of Public Health
centres.
a.  Indian public health standards
b.  Indian public health guidelines
c.   Indian public health manual
d.  Indian public health rules
37)  which of the following is a program   aimed  at controlling the spread of communicable
diseases?
a.  National oral Health Programme
b.  National Mental Health Programme
c.  National  TB control Programme
d.   National programme  for prevention and control of definition Deafness
38)  ______________________is a fund that financially support poor patients suffering from
major life threatening  illnesses. 
a. Rashtriy Swasthya  Bima Yojana
b.  Rashtriya Arogya Nidhi
c.  Pradhan  mantri Swasthya Yojana
d.  all the above 
39) Rashtriya Swasthya Bima Yojana provides Health Insurance coverage to ____________.
a.   workers in the unorganized Sector
b.  workers in the organized sector
c.  the entire population
d.  only women and children
40) Which of the following statement best describes  economic development?
a.  it always  accompanies economic growth
b.  it indicates the increase in GDP
c.  it is reflected in the quality of life of the people
d.  it is a  quantitative  concept
41)  which of the following is not included in UNDP’s HDI composite?
a.  culture
b.  education
c.  health
d.  standard of living
42)  sustainable development  includes which of the following?
a. economic development
b.  social development
c.  environmental development
d.  all the above
43) ____________ is responsible for coordinating theS the SDG’s in India.
a.  Planning Commission
b.  ministry of human resource development
c.  NITI  Ayog
d.  Ministry of Finance
44) ______________ is an initiative  to make India a manufacturing hub.
a.  skill India
b. NITI  Aayog
c.  invest India
d.  make in India
45)  The scheme for skill training of youth to be implemented through the the national skill
development  Corporation  is ______________.
a.  national Skill Development Mission
b.   Pradhan mantri Kushal Vikas Yojana
c.  skill loan scheme 
d.  all the above 
46) Which of the following statements  best define FDI?
a.  buying shares of Companies in a foreign country without gaining control over
management
b.  loans from multilateral institution like  IMF and World Bank
c.  investment in foreign assets  to acquire  lasting business interest
d.  foreign currency deposit of non-resident citizens
47)  which of the following constitutes foreign direct investment?
a.  purchase of stocks
b.  Reinvestment of earnings  buy a wholly  owned subsidiary Abroad
c. landing of fonts foreign subsidiary
d.  all the above
48)  which of the following  best describe horizontal foreign direct investment?
a.  FDI into Industry that provide inputs to the firm 
b. FDI into Industry that uses the firm's output
c.  long term lending to a foreign firm
 d.  FDI in the same industry abroad as the foreign investment firm
49 ) which of the following is not one of the benefits of FDI?
a.  cultural of of consumerism
b.  infrastructure development
c.  transfer of Technology
d.  sectoral development
50) which of the following are advantages of TNCs? 
a. Direct and indirect employment generation
b.  increased competition
c.   industrial expansion
d.  all the above

 
 SETH HIRACHAND MUTHA COLLEGE OF ARTS, COMMERCE & SCIENCE
Class : TYBCOM Subject : Business Economics V
Semester V Module : III

QUESTION BANK

Q.1) IIP measures

A) Industrial inputs inflation
B) Growth of industrial production
C) Growth of industrial investment
D) Growth of industrial exports

Q.2) Which goods has been defined as any product or equipment used as a plant and
machinery for agricultural, industrial and commercial activities.
A) Consumer Goods
B) Intermediate Goods
C) Capital Goods
D) Primary Goods

Q.3) MRTP Act was introduced in _______ to prevent the creation of monopolies by private
sector.
A) 1971
B) 1969
C) 2000
D) 1975

Q.4) Competition Act, 2002 is based on ________ as a factor.

A) Firm size
B) Firm structure
C) Firm policies
D) Firm management

Q.5) _________ proposed the adoption of a new competition law and phasing out of the MRTP
Act.
A) Raghavan committee
B) Narsimha committee
C) Kelkar committee
D) Basel committee

Q.6) Unfair labour practices are listed in

A) The Factories Act, 1948
 B) The Industrial Employment (Standing Orders) Act, 1946
C) The Industrial Dispute Act, 1947
D) The Trade Union Act, 1926
Q.7) Which of the following is not an industrial action in India?
A) Strike
B) Lockout
C) Picketing
D) Mass casual leave

Q.8) Which of the following is an illegal industrial action as per law?

A) Mutual Insurance
B) Collective Bargaining
C) Lock out
D) Gherao

Q.9) Which of the following is not a part of the New Industrial Policy 1991?
A) Increased investment in public sector enterprises
B) Abolition of licensing policy
C) Encouraging foreign direct investment
D) Amendment of MRTP Act

Q.10) ____________ refers to creating a culture of competition in the market.

A) Competition Commission
B) Competition Advocacy
C) Competition Fund
D) Competition Agency

Q.11) ______ looks after to eliminate practices having adverse effect on competition, to
promote and sustain competition in markets in India.
A) CCI
B) Anti-competitive agreements
C) CBI
D) CID

Q.12) Which of the following is not an objective of the Competition Act 2002?
A) Prohibition of ant-competition agreement
B) Regulation of combinations
C) Control of monopolies
D) Prohibition of abuse of dominant position

Q.13) Only financial institutions can participate in

A) Initial Public Offering
B) Offer for sale
C) Further Public Offering
 D) Institutional Placement Programme

Q.14) _______ involves the sale of equity and bond capital invested by the government in
PSUs.
A) Privatisation
B) Mergers and acquisitions
C) Globalization
D) Disinvestment

Q.15) Find out correct full form of DIPAM.

A) The Department of Investment and Public Asset Management
B) The Department of Investigation and Public Asset Management
C) The Department of Investment and Public Administration Management
D) The Department of Investment and Public Administrative Management

Q.16) _____ method allows auction of shares on the platform provided by the stock exchange
and done by promoters.
A) IPO
B) FPO
C) OFS
D) Strategic Sale

Q.17) Which of the following is not a function of the DIPAM?

A) Advising government of matters related to CPSE
B) All matters relating to sale of Central Government equity through offer for sale or private
placement.
C) Decisions on the recommendations of Administrative Ministries, NITI Aayog for
disinvestment
D) Promotion of foreign direct investment

Q.18) Public sector enterprises are classified into two categories.

A) CBSE & SLPE
B) CPSE & SLPE
C) CPES & SLPE
D) CPSE & SELP

Q.19) Who is the nodal agency for disinvestment in India?

A) Department of Economic Affairs
B) Department of Financial Services
C) Department of Revenue
D) Department of Investment and Public Asset Management
Q.20) Offer of shares by a listed CPSE or the government out of its shareholding or a
combination of both to the public for subscription is done through
A) Initial Public Offering
B) Offer For Sale
C) Further Public Offering
D) Strategic Sale

Q.21) Which of the following is not the objective of Disinvestment?

A) Restructuring of public Enterprises
B) Raising Resources
C) Discouraging Private equity
D) Benefit to consumers

Q.22) Which of the following is a problem faced by the PSUs in India?

A) Mounting losses
B) Underutilization of capacity
C) Administrative defects
D) All of the above

Q.23) According to the Public Enterprises Survey 2016-17, _____ was loss making PSU.
A) ONCG
B) Coal India
C) Tata motors
D) Air India

Q.24) Which of the following statements is not true of the PSUs in India?
A) They have generated large scale employment
B) They have high returns on investment
C) They have saved foreign exchange
D) They have created a diversified industrial base for India

Q.25) _______ is the nodal development agency for the MSME sector.
A) Divisional Commissioner MSME
B) Development Commissioner MSME
 C) Directorate General MSME
D) Development Council MSME

Q.26) According to the MSME Act, micro manufacturing units are classified as those
with investment limit of
A) 25 lakhs
B) 50 lakhs
C) 1 crore
D) 75 lakhs

Q.27) ______ is not a SIDBI initiative.

A) ICRA
B) SMERA
C) CGFT
D) ISARC

Q.28) The MSME Act was passed in

A) 2005
B) 2002
C) 2008
D) 2006

Q.29) The scheme to improve ease of doing business in the MSME sector is
A) SFURTI
B) UAM
C) CLCSS
D) ASPIRE

Q.30) _______ units in the ________ sector have an investment range between rs. 2 crore
and rs. 5 crore.
A) Medium, manufacturing
B) Micro, manufacturing
C) Small, Service
D) Medium, service
Q.31) A separate ministry for small industries was set up in
A) 1991
B) 1999
C) 2007
D) 2005

Q.32) _______ provides composite ratings to SME.

A) ISARC
B) SMERA
C) SIDBI venture capital Ltd
D) Credit Guarantee Fund Trust

Q.33) In 1999, the investment limit of the small scale unit was determined at
A) 25 lakh
B) 50 lakh
C) 1 crore
D) 5 crore

Q.34) MSME-MDA does not provide funding to MSMEs for

A) Participation in international trade fairs
B) Acquiring quality and environmental certifications
C) Carrying out sector specific market studies
D) Contesting anti-dumping cases

Q.35) ______ is a SIDBI initiative that provides capital to new SME start-ups.
A) ISARC
B) Credit Guarantee Fund Trust
C) CLCSS
D) SIDBI Venture Capital Ltd

Q.36) _______ deals with the problem of delayed payments by buyers to MSME
suppliers.
A) CLCSS
 B) UAM
C) MSME SAMADHAAN
D) MSME-MDA

Q.37) The law enacted as an outcome of the Bhopal Gas tragedy is

A) Public Liability Insurance Act
B) The Environment (Protection) Act
C) The Air (Prevention and Control of Pollution) Act
D) The Water (Prevention and Control of Pollution) Act

Q.38) Bharat Stage IV emission standards were adopted in

A) 1991
B) 2001
C) 2015
D) 2005

Q.39) Which of the following is not true about global warming?

A) It is causing glaciers to melt
B) It has put human lives to threat
C) It has prevented extinction of wildlife
D) It has resulted in frequent natural calamities

Q.40) Which one of the following is the cause of industrial pollution?

A) Modern technologies
B) Efficient waste disposal
C) Efficient government policies
D) Unplanned industrial growth

Q.41) Which one of the following industries produce sulfur dioxide and flu ash as
pollutants?
A) Textile industries
B) Cottage industries
 C) Thermal industries
D) Coal industries

Q.42) Which of the following is the consequence of industrial pollution?

A) Increase in water level in seas
B) Global warming
C) Increase in the animals in forests
D) Release of the hazardous radiations

Q.43) ______ conducts environmental assessment and research and responsible for
maintaining national standards under various environmental laws.
A) Central Pollution Control Board
B) Central Pollutants Control Board
C) Central Pesticides Control Board
D) Central Performance Controlling Board

Q.44) _____ wastes are generated by the healthcare industry, chemical industry and
nuclear plants.
A) Industrial waste
B) Toxic Waste
C) Biodegradable materials waste
D) Soil pollutants

Q.45) How many types of industrial pollution are there?

A) 3
B) 4
C) 5
D) 6

Q.46) Which city is most polluted among indian cities as per WHO?
A) Kerala
B) Kanpur
C) Raipur
D) Gujrat
Q.47) Which of the following is not true of toxic wastes in India?
A) There are highly efficient systems for their disposal
B) They can be caused by e-wastes
C) Handling them can be fatal at times
D) These constitute 10-15% of industrial wastes

Q.48) Noise is ________ pollutant.

A) Air
B) Water
C) Toxic
D) Soil

Q.49) Which of the following is not a characteristic of the Indian health care industry?
A) Every citizen has access to high quality services
B) Inadequate infrastructure
C) High incidences of diseases
D) Inadequate insurance coverage

Q.50) The FDI limit in multi-brand retailing is

A) 49%
B) 74%
C) 100%
D) 51%

Q.51) Which of the following activities does not belong to the services sector in India?
A) Retail trade
B) Real state
C) Insurance
D) Automobile

Q.52) Type of tourism that helps conserve natural diversity is

A) Eco tourism
B) Heritage tourism
 C) Adventure tourism
D) Medical tourism

Q.53) Which of the following is not a characteristic of the services sector?

A) Output includes intangible products
B) Is the fastest growing sector globally
C) Produces primary products
D) Involves a wide range of activities

Q.54) The FDI limit permitted for all health related services under automatic route is
A) 51%
B) 100%
C) 74%
D) 26%

Q.55) National Tourism Policy (NTP) was formulated in?

A) 2005
B) 2000
C) 2003
D) 2002

Q.56) ________ involves visiting natural areas without disturbing the fragile ecosystem.
A) Medical tourism
B) Eco tourism
C) Adventure tourism
D) Heritage tourism

Q.57) _________ refers to the remote diagnosis, monitoring and treatment of patients via
video conferencing or the internet.
A) Online checkup
B) Tele consultation
C) E-consultation
 D) Telemedicine

Q.58) Find out correct full form of NRHM.

A) National Rural Health Ministry
B) Nationwide Rural Healthcare Mission
C) National Rural Health Mission
D) National Rural Healthcare ministry

Q.59) Income tax exception for _______ years is given to hospitals in rural areas, Tier II
and Tier III cities.
A) 2
B) 3
C) 4
D) 5

Q.60) FDI limit in single-brand retailing is

A) 100%
B) 49%
C) 74%
D) 51%
 TYBCOM B. ECONIMICS SEM V

1) Which of the following measures did not form a part of fiscal correlation in 1991?
a) Increasing tax collection
b) b) cutting down subsidies
c) c) reducing budgetary support to public enterprises
d) d) raising tax rates

2) Which of the following factors was one of the primary causes of the balance of
payments crisis in 1991?
a) Low rate of inflation
b) b) surplus budget
c) c) high interest rate
d) d) rising oil price and poor remittances

3) In which year Insurance Regulatory and Development Authority (IRDA) Act was
passed?
a) 1990
b) b) 1995
c) c) 1996

d) 1999

4) Which reforms are not included into Capital market?

a) Online trading
b) b) SEBI as statutory body
c) c) introduction of Prudential norms
d) d) all the above

5) Which of the following is not a part of changes in industrial sector post 1991
reform?
a) Industrial licensing under which every entrepreneur had to get permission
from government officials to start a firm was abolished except in some sector.
b) Some goods could be produced only in small scale industries.
c) Controls on price fixation and distribution of selected industrial products.
d) All the above
6) According to 2011 Census, the overall literacy rate in India is about________
a) 64%
b) 72%
c) 74%
d) 82%

7) What are the types included into social infrastructure?

a) Education
b) Healthcare
c) Family welfare
d) All the above

8) Which statement is true after the reforms of 1991 in India?

a) Private sector investment is increased in education and health
b) India expected Mix economy
c) Public sector provide more employment opportunities
d) all the above

9) Who was the originator of the Human Development Report?

a)Amartya Sen
b) Jan Tinberger
c) Mahboob-ul-Haq
d) Dr.Manmohan Singh
10) When was Make in India programme launched?
a) 25 September, 2014
b) 2 October, 2015
c) 11 October, 2016
d) 15July, 2015
11) The foreign direct investment includes__________
a) Intellectual Property
b) Human Resource
c) Tangible Good
d) Intangible Goods
12) Which of the following is a characteristic of multinational enterprises?
a) The affiliates are responsive to a number of important environmental
forces
b) At least half its directors are foreign nationals.
c) The company does at least 30 percent of its business in foreign markets.
d) The overseas market is larger than the domestic market.

13) Which of the following is the limitation of New Agriculture Policy 2000.
a) Neglect small and marginal farmers
 b) Fails to cover all states
c) Both a and b
d) None of the above

14) Agriculture prices in India are ____.

a) Uncertain
b) Certain
c) Fixed
d) None of these

15) Indian agriculture depends on ____.

a) Government
b) Irrigation
c) Monsoon
d) None of these

16) _____ is a national food security system established by the government of

India.
a) Private Distribution System
b) Public Distribution System
c) General Distribution System
d) None of these

17) Agriculture price policy protect the interest of ____.

a) Producer
b) Consumer
c) Both a and b
d) None of these

18) _____ are the prices which farmer are assured to receive.
a) Minimum support prices
b) Issue prices
c) Maximum support prices
d) None of these

19) _____ is the backbone of the Indian economy.

a) Agriculture
b) Industry
c) Services
d) None of these

20) Agriculture price Commission was renamed as _____.

a) Commission for Agricultural development
b) Commission for Agricultural Costs and Prices
c) Commission for Agricultural Costs
d) None of the above

21) ____ provide agricultural marketing related information.

a) FCI
b) PMGSY
c) AGMARK
d) None of these
22) The problems of Agricultural marketing include ______.
a) Distress sales
b) Unregulated markets
c) Lack of credit facilities
d) All the above

23) Agricultural Marketing Development include ________.

a) Market infrastructure
b) Market enabling environment
c) Market information
d) all the above

24) Farmers dispose their surplus produce ______.

a) In village
b) In mandis
c) In market
d) All of these

25) Regulated markets provide useful marketing services to _______.

a) Producer
b) Consumers
c) Both a and b
d) None of these

26) Which of the following is a problem faced by the PSUs in India?

a) Mounting losses
b) Underutilization of capacity
c) Administrative defects
 d) All the above
27) The central government department responsible for disinvestment is_______
a) Department of investment and public Asset Management
b) Department of Commerce
c) Department of industrial policy and promotion
d) Department of Revenue
28) Which of the following is not a function of DIPAM?
a) Advising government on matters related to CPSE
b) All matters relating to sale of Central Government equity through offer for sale
or private placement
c) Decision on the recommendations of Administrative ministers n I t I Aayog for
disinvestment
d) Promotion of foreign direct investment
29) Offer of shares by a listed CPSE or the government out of its shareholding
or a combination of both to the public for subscription is done through
a) Initial public offering
b) Offer for sale
c) Further public offerings.
d) Strategic sale
30) Only Financial Institutions can practice in________
a) Initial public offering
b) Offer for sale
c) Further public offering
d) Institutional placement programme
31) In 1999 the investment limit of the small scale unit was determined at____
a) Rupees 25 lakh
b) Rupees 50 lakh
c) Rupees 1 crore
d) Rupees 5 crore
32) The MSME act was passed in
a) 2006
b) 2007
c) 2011
d) 2009
33) According to the MSME act micro manufacturing units are classified as
those with investment limit of
a) Rupees 25 lakh
b) Rupees 30 lakh
c) Rupees 50 lakh
d) Rupees 1 crore
34) The separate ministry for small industries was set up in
 a) 1991
b) 1996
c) 1999
d) 2005
35) ----- is a nodal development agency for the MSME sector.
a) Divisional Commissioner MSME
b) Development commissioner MMSME
c) Director General MSME
d) Development Council MSME
36) --- is a SIDBI initiative that provides capital to new SME startups.
a) ISARC
b) Credit guarantee fund trust
c) CLCSS
d) SIDBI venture capital Limited
37) Which of the following sentence is not correct?
a) RBI was nationalized on January 1, 1935.
b) RBI’s head quarter is in Delhi
c) RBI is the custodian of the foreign currency in India
d) RBI has 4 Deputy Governors

38) At present how many public sector banks are working in India?
a) 27
b) 25
c) 29
d) 21

39) Which of the following term is not used in the Formation of Monetary
Policy?
a) Cash Reserve Ratio
b) Repo Rate
c) Bank Rate
d) Blue chip

40) Which is the country’s third largest private sector lender whose name has been
officially changed to the Axis Bank ltd?
a) HDFC Bank
b) Lord Krishna Bank
c) Centurion Bank
d) UTI Bank

41) Which of the following is not the function of the Reserve Bank of India ?
a) Acting as banker to the Government
b) Keeping of Foreign Exchange Reserve
c) Issuing of one rupee notes and coins
d) Regulating credit in the country

42) In which denomination were India's first bimetallic coins issued in the year 2009?
a) Rs. 100
b) Rs. 5
c) Rs. 10
d) Re. 1

43)  What does M in M-Banking Facility being offered by banks to their customers,
stand for?
a) Money
b) Marginal
c) Message
d) Mobile Phone

44) The share of State Govt. in the capital of Regional Rural Bank is –
a)50%
b) 35%
c) 25%
d) 15%

45)  Malhotra Committee was set up in ____

a) 1994
b) 1993
c) 1995
d) None of These

46) Which of the following is not the main players of Indian money market?
a) Government
b) RBI
c) Commercial bank
d) Over the counter exchange of India

47) Which of the following measures absorb liquidity from the financial system?
a) Repo
b) Reverse Repo
c) Marginal standing facility
d) Buying of securities under open market operation

48) Foreign Institutional Investors (FIIs) are allowed the companies to register only in
a) Only equity shares
b) Only debt markets
c) Both a and b
d) None of the above
49) Mutual funds play an important role in Indian capital markets as
a) Speculators in stock market
b) Investment avenue for small investors
c) Promoter of large scale industries
d) None of the above

50) The Primary market does not include_________

a) Equity issues
b) GDR issues
c) Screen based trading
d) Debt issues

51) When expenditure exceeds total tax revenue, it is called_______

a) Surplus budget
b) Balanced budget
c) Deficit budget
d) None of these
52) Which of the following is not a fiscal instrument?
a) Open market operations
b) Public expenditure
c) Taxation
d) None of these
53) An increase in tax rate when tax base expands represents:
a) Progressive taxation
b) Regressive taxation
c) Proportional taxation
d) None of these
54) Which of the following is a measure of fiscal policy?
a) Public expenditure
b) C.R.R.
c) S.L.R.
d) Bank rate
55) The main difference between Public and Private Finance is:
a) Adjustment of income-expenditure
b) Satisfaction o human wants
c) Dissaving
d) Borrowings
56) The First Finance Commission was appointed in the year:
a) 1952
b) 1950
c) 1951
d) 1949
57) Maximum Social Advantage is achieved when
a) Marginal Social Sacrifice = Marginal Social Benefit
b) Total Social Sacrifice= Total Social Benefit
c) Average Social Sacrifice = Average Social Benefit
d) Net Social Sacrifice = Net Social Benefit
58) In India, personal income tax is levied on individuals by:
a) Central Government
b) State Government
c) Local bodies
d) None of these
59) Income tax is based on the principle of:
a) Ability to pay
b) Willingness to pay
c) Benefits received
d) None of these
60) The Principle of Maximum Social Advantage is associated with:
a) Dalton
b) Pigou
c) Seligman
d) Hicks
61) Which is not the characteristic of a tax?
a) No quid pro quo
b) Compulsory payment
c) Non –compulsory payment
d) Punishment to tax evader
62) Special assessment means:
a) General tax on all people
b) Gift tax
c) A tax for specific benefit conferred
d) None of these
63) Who is the exponent of the law of increasing state activities?
a) Dalton
b) Wagner
c) Seligman
d) Musgrave
64) Maximum Welfare Principle of Budget Determination is associated with
a) Adam Smith
b) Edwin Seligman
c) Hugh Dalton
d) Richard Musgrave
65) The Kelkar Proposals are concerned with:
a) Recommendations for reforms in the power sector
b) Recommendations for tax reforms
c) Guidelines for the privatization of public sector undertakings
d) None of the above

66) Value Added Tax is:

a) Direct tax
b) Indirect tax
c) Progressive tax
d) None of these
57. In the case of direct tax, impact and incidence are on:
a) Different person
b) Same person
c) Sellers
d) None of these
58) The direct violation of Tax law is called:
a) Tax evasion
b) Tax avoidance
c) Tax Rebate
d) None of these
69) The final resting place of the burden of tax is called:
a) Tax avoidance
b) Tax evasion
c) Impact
d) Incidence
70) Incidence of tax refers to:
a) Initial resting place of the burden of tax
b) Final resting place of the burden of tax
c) Both (a) and (b)
d) None of these
71) Which of the following taxes is the most likely to be regressive?
a) Sales tax on mobile phone
b) Excise duties on Kerosene
c) Import duties on electronic goods
d) Entrainment tax
72) Impact of tax refers to:
a) Initial resting place of the burden of tax
b) Tax evasion
c) The final money burden of tax
d) None of these
73) Fiscal policy is the policy of:
a) RBI
b) NABARD
c) Government
d) All of these
74) The following is an example of direct taxes:
a) Sales tax
b) Income tax
c) Excise duties
d) Toll tax

75) If the rate of tax falls with an increase in income, it is called:

a) Proportional tax
b) Progressive tax
c) Regressive tax
d) None of these
76) Budget is an instrument of:
a) Monetary policy
b) Fiscal policy
c) Trade policy
d) Exchange rate policy
27. The concept of functional finance was developed by:
a) J.M. Keynes
b) A.P. Lerner
c) Kaldor
d) Pigou
78) In public finance shifting refers to:
a) Imposing tax
b) Avoiding of tax
c) Shifting of tax burden from one person to another
d) None of these
79) The modern state is:
a) Laissez –faire state
b) Welfare state
c) Aristocratic state
d) Police state
80) According to Musgrave the major functions of public finance are:
a) Allocative function
b) Distributive function
c) Stabilisation function
d) All the above
81) Who was the first to recommend the adoption of an expenditure tax for India?
a) K.N. Raj
b) Paul Krugman
c) Raja J. Chelliah
d) N. Kaldor
82) Which one of the following taxes is levied by the State Government only?
a) Entertainment tax
b) Corporation tax
c )Wealth tax
d) Income tax
83) The controlling authority of Government expenditure is:
a) RBI
b) Planning Commission
c) Ministry of Finance
d) Finance Commission
84) A tax levied upon a firm as a percentage of its value added
a) Merit tax
b) VAT
c) Turnover tax
d) Sales tax
85) A progressive tax weighs more heavily upon the
a) Poor
b) Wage earners
c) Farmers
d) Rich
86) The incidence of tax refers to:
a) The level and rate of taxation
b) Who ultimately pays the tax
c) The growth of taxation
d) The way in which tax is collected
87) Which tax cannot be shifted to others?
a) Excise duty
b) Sales tax
c) Entertainment tax
d) Wealth tax
88) Fiscal Federalism refers to ….
a) Sharing of political power between centre and states
b) Organising and implementing economic plans
c) Division of economic functions and resources among different layers of
Govt.
d) None of these
89) Principle of sound finance refers to …
a) Maximum Government spending
b) Minimum Government spending
c) Revenue and expenditure balanced at the minimum level
d) None of these
90) The most important aim of fiscal policy in a developing country is
a) Economic stability
b) Economic development
c) Regional balance
d) None of these
91) The income of the government through all its sources is called
a) Public expenditure
b) Public revenue
c) Public finance
d) None of these
92) Modvat means
a) Modified value added tax
b) Moderate value added tax
c) Modest value added tax
d) Modern value added tax
93) Primary deficit means:
a) Fiscal deficit- Interest payment
b)Revenue deficit-interest payments
c) Fiscal deficit+ revenue deficit
d) Budgetary deficit
94) Public Expenditure increases
a) Interest rate
b) Employment
c) Exports
d) Imports
95) Deficit financing includes
a) Borrowing from the Central Bank
b) Issues of new currency by the Government
C) Withdrawal of past accumulated cash balance by the government
d) All the above
96) The principle of Maximum Social Advantage is connected with
a) Taxation
b) Expenditure
c) Public Debt
d) Both (A) and (B)
97) Which of the following does not form the basis of sound finance?
a) Say’s Law
b) Assumption of full employment
c) Ricardian Equivalence Theorem
d) Lerner’s Fundamental Rules

98) In the case of relatively elastic demand, the money burden of tax is on
a) More on seller
b) More on buyer
c) Entirely on seller
d) Entirely on buyer
99. When the supply is more elastic, the money burden of tax is on
a) More on seller
b) More on buyer
c) Entirely on seller
d) Entirely on buyer
100) Since 1951, India has been a ___ economy.
a) Socialist
b) Mixed
c) Capitalist
d) Feudal

101) The fiscal crisis faced by the Indian economy in 1990s was caused
primarily by_______
a) Widening gap between imports and exports
b) Difference between savings and investments
c) Widening gap between government expenditure and revenue
d) Difference between aggregate demand and aggregate supply

102) Which of the following factors was one of the primary causes of the
balance of payments crisis in 1991?
a) Low rate of inflation
b) Surplus budget
c) High interest rate
d) Rising oil price and poor remittances

103) Which of the following sentences would best describe the Indian
economy in 1990-1991?
a) High inflation, low foreign exchange reserves
b) Low inflation, low foreign exchange reserves
c) Huge current account deficit, fiscal surplus
d) Current account surplus, huge fiscal deficit

104) Which of the following measures was adopted in 1991 to stabilize the
economy?
a) Banking sector reforms
b) Capital market reforms
c) Control of inflation
d) Insurance reforms
1. 105) One of the measures adopted to control inflation in 1990-91 was
a) Lowering of CRR and SLR
b) Lowering of bank rate
c) Raising CRR and SLR
d) Restricting imports of essential commodities

2. 106) Which of the following measures did not form a part of fiscal correction in
1991?
a) Increasing tax collection
b) Cutting down subsidies
c) Reducing budgetary support to public enterprises
d) Raising tax rates

107) Which of the following measures was implemented by the government in

order to reduce current account deficit?
a) Revaluation of the rupee
b) Strict exchange control
c) Devaluation of the rupee
d) Import restrictions were increased

108) Structural reforms are

a) Long-term measures
b) Improve the supply side of the economy
c) Remove growth bottlenecks
d) All the above

109) Which of the following was not a feature of the New Industrial Policy
1991?
a) Abolition of industrial licensing
b) Setting up of new public sector enterprises
c) Permitted foreign investment
d) Removal of MRTP limit

110) One of the policies adopted to make public sector more efficient was
a) Raising fresh equity from the market
b) Increasing government’s shareholding in public enterprises
c) Maintaining public sector monopoly
d) Increasing operational control on public enterprises by the government
 111) Which of the following is an important banking sector reform introduced
in 1991?
a) Raising CRR and SLR
b) RBI determined interest rates
c) Introduction of prudential norms
d) None of the above

112) Capital adequacy norms helps to

a) Increase bank’s profits
b) Maintain financial stability
c) Control inflation
d) Reduce balance of payments deficit

113) Capital market reform includes

a) Setting up of SEBI
b) Special recovery tribunals
c) Introduction of capital adequacy norms
d) Deregulation of interest rates

114) The FDI limit in the insurance sector in India is

a) 100%
b) 79%
c) 49%
d) 26%
115) Which of the following is true of social infrastructure?
a) It includes the education and health network
b) It is aimed at improving quality of life
c) It is an investment in human capital
d) All the above

116) Which of the following describes the change in India after 1991?
a) Reduced private investment in education and health
b) Increased job security
c) Reduced subsidies to social sector in relative terms
d) Increased formal jobs creation

117) According to the Human Development Report 2016, India’s HDI rank is
___ among 188 countries.
a) 131
 b) 125
c) 141
d) 100
118) Which of the following is not true of the Right to Education Act?
a) Free education to all children between 6 and 14 years
b) It was enacted in 2009
c) It is an adult literacy program
d) It is aimed at providing quality elementary education
119) The scheme for providing residential schools as elementary level for
girls is
a) National Program for Education of Girls at Elementary Level
b) Model Schools Scheme
c) Rashtriya Madhyamik Shiksha Abhiyan
d) Kasturba Gandhi Balika Vidhyalaya

120) The scheme for improving access to secondary education is

a) National Programme for Education of Girls at Elementary Level
b) Model Schools Scheme
c) Rashtriya Madhyamik Shiksha Abhiyan
d) Kasturba Gandhi Balika Vidhyalaya

121) Community Health Centers are located at the ___ level of public health
infrastructure.
a) Primary
b) Secondary
c) Tertiary
d) None of the above

122) AIIMS are at the ___ level of public health infrastructure.

a) Primary
b) Secondary
c) Tertiary
d) None of the above

123) The ___ provides a reference point for the functioning of the public
health centres.
a) Indian Public Health Standards
b) Indian Public Health Guidelines
c) Indian Public Health Manual
d) Indian Public Health Rules
124) Which of the following is a programme aimed at controlling the spread of
communicable diseases?
a) National Oral Health Programme
b) National Mental Health Programme
c) National TB Control Programme
d) National Programme for Prevention and Control of Deafness

125) ___ is a fund that financially supports poor patients suffering from major
life threatening illness.
a) Rashtriya Swasthya Bima Yojana
b) Rashtriya Arogya Nidhi
c) Pradhan Mantri Swasthya Yojana
d) All the above

126) Rashtriya Swasthya Bima Yojana provides health insurance coverage to

a) Workers in the unorganized sector
b) Workers in the organized sector
c) The entire population
d) Only women and children

127) Which of the following statements best describes economic

development?
a) It always accompanies economic growth
b) It indicates the increase in GDP
c) It is reflected in the quality of life of the people
d) It is a quantitative concept.

128) Which of the following is not included in UNDP’s HDI composite?

a) Culture
b) Education
c) Health
d) Standard of living

129) Sustainable development includes which of the following?

a) Economic development
b) Social development
c) Environmental development
d) All of the above
130)___ is responsible for coordinating the SDGs in India.
a) Planning Commission
b) Ministry of Human Resource
c) NITI Aayog
d) Ministry of Finance

131)____ is an initiative to make India a manufacturing hub.

a) Skill India
b) NIT Aayog
c) Invest India
d) Make in India

132) The scheme for skill training of youth to be implemented through the
National skill development corporation is
a) National Skill Development Mission
b) Pradhan Mantra Kaushal Vikas Yojana
c) Skill Loan Scheme
d) All the above

133) Which of the following statements best define FDI?

a) Buying shares of companies in a foreign country without gaining
control over management.
b) Loans from multi-lateral institutions like IMF and World Bank.
c) Investment in foreign assets to acquire lasting business interest.
d) Foreign currency deposits of non- resident citizens.

134) Which of the following constitutes foreign direct investment?

a) Purchase of stocks
b) Re-investment of earnings by a wholly owned subsidiary abroad
c) Leading of funds to a foreign subsidiary
d) All the above

135) Which of the following best describes Horizontal Foreign Direct

Investment?
a) FDI into industry that provide inputs to the firm
b) FDI into industry that uses the firm’s output
c) Long term lending to a foreign firm
d) FDI in the same industry abroad as the foreign investor firm.
136) Which of the following is not one of the benefits of FDI?
a) Culture of consumerism
b) Infrastructure development
c) Transfer of technology
d) Sectoral development

137) Which of the following are advantages of TNCs?

a) Direct and indirect employment generation
b) Increased competition
c) Industrial expansion
d) All the above

138) The government institution that is responsible for formulation of FDI

policy in India is
a) Foreign Investment Promotion Board
b) The Department of Industrial Policy And Promotion
c) The Ministry of External Affairs
d) The RBI

139) Which of the following was not a part of the FDI policy 2017?
a) Strengthening the FIPB
b) Introduction of Foreign Investment Facilitation Portal
c) Introduction of Standard Operating Procedures
d) Issue of Convertible Notes by Start-Ups.

140) Which of the following sectors has received the highest FDI equity
investment in India during April- December 2017?
a) Retail
b) Telecommunication
c) Banking
d) Software

141) Which country has been the highest source of FDI to India during April-
December 2017?
a) Japan
b) USA
c) Singapore
d) Mauritius
142) Which of the following is a union tax?
a. Corporation tax
b. Taxes on agricultural income
c. Capitation taxes
d. Land revenues
143) The tax levied by the union government on income of individuals is known as
a. Personal income tax
b. Interest tax
c. Wealth tax
d. Corporation tax
144) The tax on net income of companies is
a. Personal income tax
b. Interest tax
c. Wealth tax
d. Corporation tax
145) The most important source of revenue to the states is
a. Sales tax
b. Service tax
c. Fees and Fines
d. Income Tax
146) The difference between revenue expenditure and revenue receipts is
a. Revenue deficit
b. Fiscal deficit
c. Budget deficit
d. Primary deficit
147) Which of the following statement would describe the term "Public Finance"?
a) It is a study of economic efficiency, allocation and distribution of
resources, income and spending activities of Public authorities.
b) It is a study of only the public sector banking system in the economy
c) It is a study of only the finances of the general public and their pattern of
spending
d) It is a study of the direct and indirect taxes in an economy.

148) Govt. taxing and spending policies are called:

a) Monetary policy
b) Fiscal policy
c) Commercial policy
d) Foreign Trade Policy

149) Government budget is balanced when:

a) Government expenditure is more than tax receipts
b) Government tax receipts are more than expenditure
c) Government expenditure equals tax revenue
d) Government expenditure and tax revenue both are unstable.
150) Government finance is called:
a) National finance
b) Public finance
c) Private finance
d) State Finance
151) Govt. prepares its budget:
a) Weekly
b) Monthly
c) Quarterly
d) Annually
152) A budget where there is excess of expenditure over revenue is called:
A) Surplus
B) Deficit
C) Balanced
D) Zero-based
153) The financial year in India starts from:
A) 1st January
B) 31st March
C) 1st April
D) 1st July
154) The Annual Account of both the income and expenditure of government is called:
A) Plan
B) Budget
C) Manifesto
D)Accounts
155) Which of the following is a canon/principle of taxation?
a) Canon of Equality
b) Canon of Excludability
c) Canon of secrecy
d) Canon of durability
156) A budget where there is excess of expenditure over revenue is called:
A) Surplus
B) Deficit
C) Balanced
D) Zero-based

157) The financial year in India starts from:

A) 1st January
B) 31st March
C) 1st April
D) 1st July

158) The Annual Account of both the income and expenditure of government is called:
A) Plan
B) Budget
C) Manifesto
D)Accounts
159) Which of the following is a canon/principle of taxation?
a) Canon of Equality
b) Canon of Excludability
c) Canon of secrecy
d) Canon of durability
160) In proportional tax system, the rates of tax remain:
(a) Constant
(B) increasing
(c) decreasing
(d) zero
161) Special Assessment means:
(a) A tax on spe0cial benefits
(b) General tax on all people
(c) A periodical tax
(d) Gift tax
162) Which is the tax shifting?
(a) To bear the tax burden himself
(b) To shift the tax burden on others
c) To bear some part of the tax himself and shift the rest on others
(d) To avoid paying tax

163) A tax that can be shifted is called:

A) Direct tax
B) Progressive tax
C) Indirect tax
D) Agricultural tax

164) In India, personal income tax is levied on individuals by:

a) Central Government
b) State Government
c) Local bodies
d) Municipal corporations
165) In India GST was introduced in the year
(a) 2016
(b) 2017
(c) 2018
(d) 2019

166) What is the full form of GST?

A) Goods and Supply Tax
B) Goods and Services Tax
C) General Sales Tax
D) Government Sales Tax
167) In India GST was introduced in the year
(a) 2016
(b) 2017
(c) 2018
(d) 2019

168) What is the full form of GST?

A) Goods and Supply Tax
B) Goods and Services Tax
C) General Sales Tax
D) Government Sales Tax
169) A scheduled bank is one which has
a) Paid up capital and reserve not less than ₹5 lakh
b) Term deposit of ₹5 lakh
c) Demand deposit of ₹5 lakh

170) Public Sector Banks include

a) Only State Bank of India
b) Only Nationalised Banks
c) Only Regional Rural Bank
d) All the above

171)The population for every bank branch in 2015 was

a) 64,000
b) 16,000
c) 10,300

172)To promote financial inclusion, on 28 August 2014, the following new scheme was
introduced
a) Garibi Hatao
b) The Pradhan Mantri Jan Dhan Yojana (PMJDY)
c) Mahatma Gandhi National Rural Employment Guarantee
Scheme (MGNREGA)

173) Which one of the following schemes was introduced under operational technology?
a) ATMs
b) Mobile banking
c) Electronic Fund Transfer (EFT)
d) All the above
174)Since 1991 commercial banks have succeeded in
a) Expanding branches
b) Deposit mobilisation
c) Increase in lending
d) All the above

175)In 2017 advances of commercial banks to the priority sector was

a) 40 %
b) Less than 40 %
c) More than 40 %

167)Financial Inclusion aims at providing financial services to

a) Industrialists
b) Poor people
c) Indian investors abroad

168)In recent years’ Indian banks have increased their efficiency by

a) Using information technology
b) By reducing number of employees
c) By increasing number of branches

169)In recent years the number of RRBs has

a) Increased
b) Decreased
c) Remained constant

170)Virtual Banking aims at rendering banking services through

a) Branch expansion
b) Advancing cheap credit
c) Use of IT services
171)Industrialization involves
a) Technological innovation
b) Social changes
c) Relative decline of agriculture’s share in the GDP
d) All the above
172)Functional composition of industries refers to
a) Ownership based criteria
b) Use-based criteria
c) Investment based criteria
d) Turnover based criteria

173)Which of the following is not a part of the New Industrial Policy 1991?
a) Increased investment in public sector enterprises
b) Abolition of licensing policy
c) Encouraging foreign direct investment
d) Amendment of MRTP Act

174)IIP measures
a) Industrial inputs inflation
b) Growth of industrial production
c) Growth of industrial investment
d) Growth of industrial exports

175)Currently, the base year for estimating IIP is

a) 1993-94
b) 2004-05
c) 2015-16
d) 2011-12

176)Which of the following is not an objective of the Competition Act 2002?

a) Prohibition of anti-competitive agreements
b) Regulation of combinations
c) Control of monopolies
d) Prohibition of abuse of dominant position

177)Competition advocacy refers to

a) Control of monopolies
b) Restricting investments through licensing
c) Control of unreasonable profits
 d) Promoting a competition culture
178)The objective of National Agriculture Policy 2000 is to achieve agriculture growth
rate of
a) 3%
b) 4%
c) 5%
179)The New Policy aims to
a) Liberalize internal trade
b) Exports
c) Both
180)The average agricultural growth rate since 2000 is
a) Above 4 %
b) Less than 4 %
c) 4%