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PRACTICE SESSIONS 2015

Economic and Social Development

1. Which of the following capital inflows can help
government to manage the Current Account Deficit?
1. FDI
2. FII
3. IPO
4. ECB
5. Austerity measures
Select the correct answer from the codes given
below:
a) 1 and 2 only
b) 1, 2 and 4 only
c) 1, 4 and 5 only
d) All the above
2. In the present time, it has been felt that the role of
SDRs is lessened significantly. Which of the
following are the reasons for this situation?
1. The Developed countries who hold more
SDRs are unlikely to use them for any
purpose.
2. After the collapse of Bretton woods
System, major currencies shifted to a
floating exchange rate regime.
3. The growth in international capital markets
facilitated borrowing by creditworthy
governments.
Select the correct answer from the following options:
a) Only 2 is correct
b) 2 and 3 are correct
c) 1 and 2 are correct
d) All are correct

5. Consider the following statements:

1. The second Five Year Plan, in general, laid
down the basic ideas regarding goals of
services and manufacturing, was based on
the ideas of Jawaharlal Nehru and
Mahalonobis.
2. Industrial Policy Resolution 1956 formed
the basis of the Second Five Year Plan,
which tried to build the basis for a
socialistic pattern of society in India.
Select the correct option from below:
a) Only 1 is correct
b) Only 2 is correct
c) Both 1 and 2 are correct
d) Neither 1 nor 2 is correct
6. At the time of Independence, the land tenure
system was characterised by number of problems and
called for Land reforms in India. In this context,
Policy of Land ceiling was introduced with, which of
following purposes?
1. To promote equity in the agricultural sector.
2. To reduce the concentration of land
ownership in few hands.
3. To incentivise the tenants to increase output
and to contribute to agricultural growth.
Which of the following are correct?
a. i only.
c. i & ii only.
b. ii & iii only d. All the three

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3. Which of the following can the advantages of

allowing FDI in retail sector?
1. Increased investment
2. Help in reducing wastage of vegetables and
other perishables
3. Help in taming inflation
4. Improve back end infrastructure facilities
like cold chains, warehouses.
Select the correct answer from the options given:
a) Only 2 is correct
b) 1, 2 and 4 are correct
c) 1,3 and 4 are correct
d) All are correct

4. Consider the following statements in regard to a

socialistic society:
1. The government decides what goods are to
be produced in accordance with the needs of
society.
2. The desires of individual consumers are not
given much importance.
3. In principle, distribution is supposed to be
based on what they can afford to purchase
and not on what people need.
Select the correct answer from the following options:
a) Only 1 is correct
b) 1 and 2 are correct
c) 2 and 3 are correct
d) All are correct

Test 7 Economics

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7. Which of the following were the objectives of the

National manufacturing policy 2011?
1. To enable manufacturing sector to contribute
at least 25% of GDP by 2022
2. To create 100 million additional jobs in the
manufacturing sector by 2022
3. To create appropriate skill sets among the
rural migrants and urban poor for easy
absorption in to manufacturing sector
Select the correct answer from the following options:
a) Only 2 is correct
b) 2 and 3 are correct
c) 1 and 3 are correct
d) All are correct
8. Which of the following statement are correct in
regard to national program of mid-day meals in
schools?
1. Under this, cooked mid-day meals are
provided to all children attending classes IVIII in government, local body, govt-aided
schools in rural areas
2. EGCs/alternate & innovative education
centers including madarsas / maqtabs
supported under the SSA across the country
are also covered under this programme
3. Adequate quantity of micro-nutrients like
iron ,folic acid & vital are also recommended
for convergence with the NRHM
Select the correct answer from the following options:
a) Only 2 is correct
b) 2 and 3 are correct
c) 1 and 3 are correct
d) All are correct
9. Identify the incorrect statements from the
following:
1. The National Bank for Agriculture and Rural
Development (NABARD) is dedicated to
promoting rural development by providing
soft loans to State governments for social
sector projects.
2. Under the new urea investment policy, the
difference between the MRP and the cost of
production is given as subsidy to farmers.
3. In the recent years, the government has been
giving additional subsidy to naptha-based
complex fertilizer makers to cover higher
Test 7 Economics

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PRACTICE SESSIONS 2015

cost of production with a condition that they
will convert their units into gas-based.
Select the correct answer from the following options:
a) Only 2 is correct
b) 2 and 3 are correct
c) 1 and 3 are correct
d) All are correct
10. Under Public sector which of the following
industry provides for maximum employment in the
organized sector?
a) Construction
b) Wholesale and retail trade
c) Manufacturing
d) Transport storage and communication
11. In times of regulated prices on diesel, you might
have frequently come across the term Under
recoveries on diesel in the news. Which of the
following can help in eliminating under recoveries on
diesel?
1. High subsidization of diesel
2. Decontrolled pricing for diesel
3. Progressive elimination of subsidies
Select the correct answer fro the codes given below:
a) Only 1
b) Only 2
c) 2 and 3
d) 1 and 3
12. Consider the following:
1. Tier I capital Banks equity + Disclosed
reserves
2. Tier II capital long term debt +
Undisclosed reserves
Select the correct answer from the following options:
a) Only 1 is correct
b) Only 2 is correct
c) Both 1 and 2 are correct
d) Neither 1 nor 2 is correct
13. Identify the wrongly matched pair from the
following
1. Rural infrastructure SAGY
2. Urban infrastructure AMRUT
3. Regional Development Make in India
Select the correct answer from the following options:
a) Only 1
b) Only 2
c) None of the above
d) All the three
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14. Which of the following are the ones covered

under the state component of the Backward Region
Grant Fund?
1. All the districts of the state of Bihar
2. Districts of the KBK region in Odisha
3. Kuttanad district of Kerala
4. Bundelkhand region of Uttar Pradesh
and Madhya Pradesh
5. Entire North-Eastern region states
Select the correct answer from the codes given
below:
a) 1, 2, 4 and 5
b) 1 and 4
c) 1, 2, 3 and 4
d) 1, 2 and 4
15. Which of the following are the salient features of
the Sansad Adarsh gram Yojana, in India?
1. Holistic development of identified GPs
2. Substantially improve standard of living
and quality of life
3. Constructing Individual, Cluster and
Community toilets.
4. Generate models of local level
development
and
effective
local
governance.
Select the correct answer from the codes given
below:
a) 1 and 3
b) 1 and 4
c) 1, 2 and 3
d) 1, 2 and 4
16. Consider the following:
1. Cash reserve ratio
2. Bank rate
Increasing which of the above can help in controlling
the inflation?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
17. Indian planning reflected the importance and
priority of the government from time to time.
Therefore, the features of Indian planning were:
1. Indicative nature
2. Centralised planning
3. Development oriented
Test 7 Economics
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PRACTICE SESSIONS 2015

4. Pre-dominance of Public sector
Select the correct answer from the following options:
a) 1, 3 and 4
b) 1, 2 and 3
c) 1, 2 and 4
d) All the above
18. Consider the following statements:
1. Virtual Clusters is an initiative launched by
the Ministry of Micro, Small and Medium
Enterprises.
2. Virtual Clusters is a dedicated web-portal
which will enable small businesses located
anywhere in the country and the other
stakeholders like banks, other financial
institutions, various Government bodies,
NGOs, industry experts, consultants and
trainers, academia, research & technical
institutions etc. to come together.
3. This will facilitate the stakeholders to
leverage the expertise of each other to their
mutual growth and benefit.
Select the correct answer from the following options:
a) Only 2 is correct
b) 1 and 3 are correct
c) 2 and 3 are correct
d) All are correct
19. Consider the following statements:
1. The BRGF Programme is designed to redress
the issues associated with rural development
in the LWE districts.
2. The Development Grants under the BRGF
are untied in nature and are basically utilized
in implementing works/activities/ included in
the Action Plan prepared by the Panchayati
Raj Institutions and Urban Local Bodies in a
participatory and decentralized mode.
3. The allocation under the district component
of the Backward Regions Grant Fund
(BRGF) Programme for the year 2014-15 has
been doubled over current years allocation.
Select the correct answer from the following options:
a) Only 2 is correct
b) 1 and 3 are correct
c) 2 and 3 are correct
d) All are correct

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20. Consider the following statements:

1. The MPLADS is meant to enable MPs to
recommend works of developmental nature
with emphasis on creation of community
assets based on local needs.
2. Implementation of the works under
MPLADS, in the field, is undertaken by the
contractors in accordance with the
corresponding MPs choice.
Select the correct answer from the following options:
a) Only 1 is correct
b) Only 2 is correct
c) Both 1 and 2 are correct
d) Neither 1 nor 2 is correct
21. Consider the following:
1. Development of particularly vulnerable
tribal groups- earlier known as Primitive
Tribal Groups (PTGs) is a scheme towards
the development of tribal groups of scheduleV states.
2. The scheme aims at the socio-economic
development of PTGs in a holistic manner by
adopting habitat development approach and
intervening in all spheres of their social and
economic life.
Select the correct answer from the following options:
a) Only 1 is correct
b) Only 2 is correct
c) Both 1 and 2 are correct
d) Neither 1 nor 2 is correct
22. Indentify the incorrect pair/s from the following:
1. Liberalisation - Disinvestment
2. Privatisation - Deregulation of Industrial
sector
3. Globalisation - Outsourcing
Select the correct answer from the following options:
a) Only 3
b) 1 and 2
c) 2 and 3
d) All the above
23. Consider the following statements:
1. Direct taxes consist of taxes on incomes of
individuals as well as profits of business
enterprises.
2. High rates of income tax are an important
reason for tax evasion, whereas moderate
Test 7 Economics
10/70 ORN

PRACTICE SESSIONS 2015

rates can encourage savings and voluntary
disclosure of income.
3. Reforms in the Indirect taxes can facilitate
establishment of common national market
for goods and commodities.
Select the correct answer from the following options:
a) Only 2 is correct
b) 1 and 3 are correct
c) 2 and 3 are correct
d) All are correct
24. Under the New Economic Policy of 1991, the
trade and investment policy reforms aimed at which
of the following?
1. Promotion of the efficiency of the industries
and the adoption of modern technologies.
2. Dismantling of quantitative restrictions on
both imports and exports.
3. Increase in tariff rates.
4. Removal of licensing procedures for imports.
Select the correct answer from the following options:
a) 1, 3 and 4 are correct
b) 1, 2 and 3 are correct
c) 1, 2 and 4 are correct
d) All are correct
25. Consider the following:
1. Under the New Economic Policy 1991, the
Stabilisation measures are long term
measures whereas the Structural reform
measures are short term measures.
2. The Stabilisation measures aimed at
improving the efficiency of the economy
and
increasing
its
international
competitiveness.
3. The Structural reform measures intended to
correct the weakness that has developed in
the balance of payment and to bring
inflation under control.
Select the correct answer from the following options:
a) Only 3 is correct
b) Only 2 is correct
c) 2 and 3 are correct
d) None is correct
26. Consider the following:
1. The WTO was founded in 1995 as the
successor organisation to the General
Agreement on Trade and Tariff.
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2. The GATT was originally created by the

Bretton Woods Conference as part of a
larger plan for economic recovery after
World War II.
3. It was GATT which provided the principle
of trade without discrimination in the free
market trade through MFN.
Select the correct answer from the following options:
a) Only 2 is correct
b) 1 and 3 are correct
c) 1 and 2 are correct
d) All are correct
27. Match the following, in respect to definition of
services trade under the GATS, depending on the
territorial presence of the supplier and the consumer
at the time of the transaction:
Mode
1. Mode I
2. Mode II
3. Mode III
4. Mode IV
Type of Services
A. Cross border trade
B. Consumption abroad
C. Commercial presence
D. Presence of natural persons
Select the correct answer from the codes given
below:
a) 1-A, 2-C, 3-B, 4-D
b) 1-A, 2-B, 3-C, 4-D
c) 1-C, 2-D, 3-B, 4-A
d) 1-D, 2-C,3-B, 4-A
28.
Multilateral
Investment
Guarantee
Agency (MIGA),
an
international
financial
institution, which guarantees investors to protect
their foreign direct investments against political and
non-commercial risks in developing countries. In
this, insurance to cover non-commercial risks
include:
1. currency inconvertibility and
transfer
restriction
2. government expropriation
3. war, terrorism, and civil disturbance
4. breaches of contract
5. the non-honoring of sovereign financial
obligations
Test 7 Economics

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PRACTICE SESSIONS 2015

Select the correct answer from the following options:
a) 2 and 3 are correct
b) 2 3 and 5 are correct
c) 2, 3, 4 and 5 are correct
d) All are correct
29. Which of the following constitute the Central
indirect tax, in India?
1. CENVAT
2. Central sales tax
3. Luxury tax
4. Octrai
Select the correct answer from the following options:
a) 1, 2 and 3 are correct
b) 1 and 2 are correct
c) 2, 3 and 4 are correct
d) All are correct
30. Consider the following statements:
1. Double Taxation Avoidance Agreements
provide for allocation of taxation rights to
source State and residence State in respect
of business profits.
2. Double Taxation Avoidance Agreements
aim to avoid the burden of double taxation
on the income of residents belonging to the
two treaty countries only.
3. It also simulates flow of investment,
technology and services between the
countries.
Select the incorrect answer from the codes given
below:
a) Only 1
b) 1 and 2 only
c) None
d) All are incorrect
31. Which of the following were the terms of
reference for making recommendation, by the
Fourteenth Finance Commission, are correct?
1. The Commission shall review the state of
the finances, deficit and debt levels of the
Union and the States, keeping in view, in
particular, the fiscal consolidation roadmap
recommended by the Thirteenth Finance
Commission.
2. The commission shall suggest measures for
maintaining a stable and sustainable fiscal
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environment consistent with equitable

growth.
3. The Commission shall also consider and
recommend incentives and disincentives for
States for observing the obligations laid
down in the Fiscal Responsibility Budget
Management Acts.
Select the correct answer from the codes given
below:
a) 1 and 2 are correct
b) 2 and 3 are correct
c) 1 and 3 are correct
d) All are correct
32. Indias foreign exchange reserve, is made up of
which of the following components?
1. Foreign Currency Assets
2. Gold
3. SDRs
4. Reserve Position in the IMF.
Select the correct option from the codes given below:
a) 1, 2
b) 2, 3
c) 1, 2, 3
d) All the above
33. Consider the following statements:
1. The National Culture Fund (NCF) was
established as a funding mechanism distinct
from the existing sources and patterns of
funding for the arts and culture in India.
2. The NCF was established with a purpose to
augment governments efforts and to
facilitate public-private partnership in the
field of heritage conservation and promotion.
3. The NCF is managed and administered by a
council chaired by the Minister for Culture
and an Executive Committee chaired by the
Secretary, Ministry of Culture (The NCF is
accountable to each donor in respect of funds
donated.)
Select the correct answer using the codes given
below:
a) 1 and 3 are correct
b) Only 3 is correct
c) Only 1 is correct
d) All are correct

Test 7 Economics

10/70 ORN

PRACTICE SESSIONS 2015

34. The Fiscal Responsibility and Budget
Management Act, 2003 (FRBMA) was enacted by
the Parliament of India to institutionalise financial
discipline. Under this act, the government should
present before the Parliament regarding its fiscal
health every year, in terms of:
1. Fiscal deficit
2. Revenue deficit
3. Borrowings by central government
4. Tax GDP ratio
5. GDP growth
Select the correct answer from the following options:
a) 2 and 3 are correct
b) 1, 2, 3 and 4 are correct
c) 2, 3, 4 and 5 are correct
d) All are correct
35. Consumer Price Index, in India, is being
calculated by
a) NSSO
b) Labour Bureau (others)
c) Central Statistical Organisation
d) Ministry of Statistics
36. Which of the following features are true in regard
to Rashtriya Swasthya Bima Yojana?
1. Smart card based cashless health insurance
2. Using both public and private service
providers
3. No age limit been prescribed
4. Women will be given priority
5. Nodal ministry is Ministry of Labour
Which of the statements given above is/are correct?
a) 1 and 4 only
b) 1, 2 and 4 only
c) 1, 2, 3 and 4 only
d) 1, 2, 3, 4 and 5
37. The lowering of Bank Rate by the RBI leads to
a) More liquidity in the market
b) Less liquidity in the market
c) No change in the liquidity in the market
d) Mobilization of more deposits by
commercial banks
38. Dunkel draft is associated with
a) WTO
b) World Bank
c) IMF
d) ILO
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PRACTICE SESSIONS 2015

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40. Consider the following, in regard to the Foreign

Trade Policy 2015-2020.
1. The new policy will be reviewed after twoand-a-half years and not annually as was the
practice earlier.
2. Apart from the existing Board of Trade, a
Council for Trade Development and
Promotion will be set up comprising
representatives from states and Union
Territories.
Which of the statements given above is/are
correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
41. Consider the following statements:
1. Comprehensive Economic Co-operation
Agreement and Comprehensive Economic
Partnership Agreement are pacts between
two countries for their economic
cooperation.
2. In trade relation between two countries,
CECA have a wider scope and more
complications than CEPA.
3. In a comparable economic standing, CEPA
is considered as the first step or a stepping
stone to accomplish CECA.
Select the correct answer from the codes given
below:
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2 and 3
42. In India, the large organised manufacturing sector
is not creating enough jobs. Which of the following
can be the reason for the above situation?
1. The strict labour laws
2. Complex Business Environment
3. Improved social security measures for
Informal sector workers
Test 7 Economics
10/70 ORN

Select
below:
a)
b)
c)
d)

the correct answer from the codes given

1 only
1 and 2 only
2 and 3 only
1, 2 and 3

43. Which of the followings would be included in the

Current Account?
1. Visible balance of trade
2. Invisible balance of trade
3. FDI
4. Portfolio investment
5. Unilateral transfers
Select the correct answer from the following codes:
a) 1, 2 and 5
b) 2, 3, 4 and 5
c) 1, 2, 3 and 5
d) 1, 2, 3, 4 and 5
44. Which of the following are the measures being
taken by the government of India to provide a
minimum level of social protection to workers in the
unorganized
sector
and
ensure
inclusive
development?
1. Aam Adhmi Bima Yojana
2. Rashtriya Swasthya Bima Yojana
3. National Social Security Fund
4. Social Security Agreements
Select the correct answer using the codes given
below:
a) 1, 2 and 3
b) 2, 3 and 4
c) 1, 3 and 4
d) 1, 2, 3 and 4
45. Which of the following are correct in regard to
Indira Gandhi Matritva Sahyog Yojana (IGMSY):
1. A conditional cash transfer scheme
2. For pregnant and lactating women, and
children upto 3 years.
3. Now covered under the Direct Benefit
Transfer (DBT) programme
Select the correct answer from the codes given
below:
a) 1 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3
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39. Which state leads in the production of rice?

a) West Bengal
b) Uttar Pradesh
c) Andhra Pradesh
d) Orissa

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46. A Bill shall be deemed to be a Money Bill if it

contains only provisions dealing with all or any of
the following matters, namely:
1. The imposition, abolition, remission,
alteration or regulation of any tax
2. The custody of the Consolidated Fund or the
Contingency Fund of India
3. The imposition of fines or other pecuniary
penalties
4. The demand or payment of fees for licences
or fees for services rendered
5. The regulation of the borrowing of money by
the Union Government
Select the correct answer from the codes given:
a) 1 and 2 only
b) 1, 2 and 3 only
c) 1, 2 and 5 only
d) 2, 4 and 5 only
47. Which of the following expenditures come under
the category of non-planned expenditure?
1. Subsidy
2. Grants to the states
3. Natural calamities
4. Interest payments
5. Defence
Select the correct answer from the following options:
a) 1 and 3 are correct
b) 1, 3 and 5 are correct
c) 1, 3, 4 and 5 are correct
d) All are correct
48. The definition of Micro, Small and Medium
Enterprises (MSME) are classified in two Classes:
1. The Manufacturing Enterprise, engaged in the
manufacture or production of goods pertaining to any
industry, are defined in terms of investment in Plant
& Machinery.
2. The Service enterprises engaged in providing or
rendering of services, are defined in terms of
investment in equipment.
Which of the statements given above is/are correct?
a) only 1 is correct
b) only 2 is correct
c) Both 1 and 2 are correct
d) Neither 1 nor 2 is correct

Test 7 Economics

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PRACTICE SESSIONS 2015

49. Consider the following statements in regard to
Security Transaction Tax:
1. It is a tax on the stock exchange transaction
including buying and selling of share.
2. It is both an Advelorem tax and a Direct tax.
3. The burden of this tax will not be equally
shared by buyer and sellers, as the seller
have to pay more percentage.
Select the correct answer from the following options:
a) 1 and 2 are correct
b) 2 and 3 are correct
c) 1 and 3 are correct
d) All are correct
50. Which of the following is/are the objectives of
Government of Indias recent disinvestment policy?
1. Improving the performance of units
2. Reducing the budgetary deficits
3. Overcoming the problem of political
involvement in PSUs
4. Enabling the government to concentrate on
Social development
5. Fixing the responsibility on management
Select the correct answer from the following codes:
a) 1, 2, 3 and 4
b) 2, 3, 4 and 5
c) 1, 2, 3 and 5
d) 1, 2, 3, 4 and 5
51. Which of the following is correct in regard to
Deflation?
a) The general price level falls and the value of
money rises
b) It is an anti-inflationary measure
c) State of economy in which economic
activity is slowing down, wages and prices
continue to rise
d) Both a and b
52. Consider the following:
1. CCI is a quasi-Judicial Regulatory Body
set up to prevent practices having
adverse effect on competition,
2. Its
been
entrusted
with
the
responsibility to ensure fair and healthy
competition in economic activities in
the country for faster and inclusive
growth and development of economy.
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3. It also has to develop and nurture

effective relations and interactions with
sectoral regulators to ensure smooth
alignment of sectoral regulatory laws in
tandem with the competition law.
Select the correct answer from the codes given
below:
a) 1 only
b) 1 and 2
c) 1 and 3
d) All the above
53. The Multi-dimensional Poverty index, developed
by Oxford Poverty and Human Development
Initiative with UNDP support, considers which of the
following?
1. Health
2. Education
3. Empowerment
4. Living standards
Select the correct answer from the codes given
below:
a) 1 and 2
b) 1, 2 and 4
c) 1, 3 and 4
d) All the above
54. Under the Tonnage tax regime, the tax to be paid
by the shipping company is on the basis of:
1. Tonnage carried by the ship
2. Number of days, a ship has been in the
operation.
3. Value of the shipment
Select the correct answer from the following options:
a) 1 and 3
b) 1, 2 and 3
c) 1 and 2
d) Only 3
55. The narrow base in Indian Taxation system
implies:
1. Number of people coming under the tax
regime, particularly under the Direct tax is
too small.
2. Number of tax payers on which the
government is depending upon for its major
part of revenue is very few

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PRACTICE SESSIONS 2015

.
Select the correct option from the below:
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
56. Which of the following are the significant
problems observed in the Indian Taxation System?
1. Tax evasion
2. Dominance of Direct taxes
3. Administrative inefficiency and corruption
4. Simplistic tax slab system
5. Lack of e-governance infrastructure
Select the correct answer from the following options:
a) 1 and 3
b) 1, 2 and 3
c) 1, 3 and 5
d) All the above
57. India is presently reeling under power crisis more
than ever before. In this context, which of the
following are a part of several problems faced by the
Power producers in India?
1. Acute fuel shortage
2. Delays in environmental clearances
3. Inefficient state utilities
4. Reluctance of banks to lend to this sector
Select the correct answer from the codes given
below:
a) 1 only
b) 1 and 3
c) 1, 2 and 3
d) All the above
58. Which of the following taxes does not belong to
the union exclusively?
a) Customs
b) Surcharges on Income tax
c) Land revenue
d) Corporation tax
59. Consider the following:
1. Janani Suraksha Yojana (JSY) aims at
reduction in infant and maternal mortality
by improving coverage of institutional
delivery among pregnant women.
2. Under the scheme, cash assistance is
provided to all pregnant women, across the
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country unconditionally, for giving birth in a

health facility centre.
3. For increasing the participation of the
community, the intervention has identified
ASHA, the community based health
volunteer, as the link between the
communities and the health systems.
Select the correct answer from the codes given
below:
a) 1 only
b) 1 and 2
c) 1 and 3
d) All the above
60. Which of the following is/are not a part of the
Index of Eight core industries in India?
1. Electricity
2. Fertilizer
3. Agriculture and Allied industries
4. Transportation
Select the correct answer from the following:
a) Only 2
b) 1 and 2
c) 3 and 4
d) 2, 3 and 4
61. According to RBIs revised definition of FDI,
which of the followings are the constituents of FDI in
India?
1. Equity share capital
2. Inter-corporate debt translocations
3. Reinvested earnings
Select the correct answer from the following options:
a) 1 and 3
b) 2 and 3
c) 1 and 2
d) All the three
62. In India, the Foreign Portfolio investment mainly
comes through, which of the following routes?
1. FII
2. ADR / GDR
3. SDR
Select the correct answer from the following options:
a) 1 and 3
b) 1 and 2
c) 2 and 3
d) All the three
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63. Identify the incorrect pairs from the following:
1. Tobin tax tax on cross border investments
2. Participatory Notes by Individual
investors to the FIIs
3. Press Note 1 related to FDI, between the
Foreign investor and the Indian partner
Select the correct answer from the following options:
a) 1 and 3
b) Only 3
c) 1 and 2
d) Only 2
64. Which of the following is correct in regard to
Green GDP?
a) It is used for integrating natural capital in
the balance sheet of the country
b) To monitor and measure economic growth
and efficiently use the data for effective
policy initiatives for welfare of the society
c) Both a and b
d) Neither a nor b
65. As per the Greenhouse Gas Emission Inventory
2007 published by Indian Network for Climate
Change Assessment (INCCA), agriculture sector
contributes to 17% of the net green house gas
emissions from India in 2007. Which of the
following help to reduce emissions from agriculture
sector without compromising the food grain
production?
1. Improved irrigation management techniques
2. Cultivation of aerobic rice
3. System of Rice Intensification (SRI)
4. Use of neem-coated urea
Select the correct answer from the codes given
below:
a) Only 3
b) 2 and 3
c) 1, 2 and 3
d) All the above
66. Which of the following help to augment gas
supplies and bridge the gap between supply and
demand for the domestic market including that for
power sector?
1. New Exploration Licensing Policy
2. Coal Bed Methane (CBM) Policy
3. Implementation of international
pipelines projects
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4. Import of gas in the form of

Liquefied Natural Gas
5. Encouraging Under Ground Coal
Gasification and Liquefaction
Select the correct answer from the following:
a) 1 and 3
b) 1, 2 and 3
c) 1, 2, 3 and 5
d) 1, 2, 3, 4 and 5
67. In the recent times in India, which of the
following are the key ingredients of the Government
policies toward fiscal consolidation?
1. Widening of the tax base
2. Prioritization of expenditure
3. Direct benefit transfer scheme
4. Modernisation of Army
Select the correct answer using the codes given
below:
a) 1, 2 and 3
b) 2, 3 and 4
c) 1, 3 and 4
d) 1, 2, 3 and 4
68. Which of the following were the measures taken
by the Central government to tackle the issue of
slums?
1. National Urban Housing and Habitat Policy
2. Jawaharlal Nehru National Urban Renewal
Mission
3. Indira Awas yojana
4. Interest subsidy scheme for Housing of the
Urban poor
Select the correct answer from the following options:
a) 1 and 3
b) 1, 2 and 3
c) 1, 2 and 4
d) All the four
69. The Government of India launched the NRHM in
2005 with the objective of expanding access to
quality health care to rural populations by
undertaking architectural corrections in the
institutional mechanism for health care delivery.
Which of the following are the strategies adopted
under this mission?
1. Integration of Family Welfare and
National
Disease
Control
Programmes under an umbrella
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approach for optimization of
resources and manpower
2. Strengthening of outreach services
by incorporation of village health
worker
3. Communitisation of services through
formation of Health and Sanitation
Committees at village, block and
district level
Select the correct answer from the codes given
below:
a) Only 1
b) 1 and 3
c) 1 and 2
d) 1, 2 and 3
70. Identify the incorrect pairs from the following:
1. Blue box subsidies in the nature of direct
support to the farmers
2. Amber box subsidies trade distorting
subsidies
3. Green box subsidies non-trade distorting
subsidies
Select the correct answer from the following options:
a) 1 and 3
b) Only 3
c) 1 and 2
d) None of the above
71. Which of the following are correct in regard to eBusiness (e-Biz)?
1. Initiative, being piloted by the
Department of Industrial Policy and
Promotion, seeks to provide
comprehensive
Government-tocitizen (G2C) services to civil
entities with transparency, speed,
and certainty.
2. It aims at reducing the points of
contact between business entities and
Government agencies, standardizing
"requirement
information",
establishing single-window services,
and reducing the burden of
compliance
3. This project aims at creating an
investor-friendly
business
environment in India by making all
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regulatory
information
easily
available to the various stakeholders
Select the correct answer from the codes given:
a) 1 and 2
b) 2 and 3
c) Only 2
d) 1, 2 and 3
72. Which of the following are correct in regard to
the objectives of Swachh Bharat Abhiyan?
1. Elimination of open defecation
2. To effect behavioural changes regarding
healthy sanitation practices
3. Capacity augmentation of ULBs
4. To create an enabling environment for
private sector participation in capital
expenditure and operation and maintainence.
Select the incorrect objective from the codes given:
a) 2 and 4
b) 2, 3 and 4
c) Only 4
d) None of the above
73. Consider the following statements:
1. The main components of capital account
include Foreign investments, loans and
banking capitals.
2. In India, FII is preferred over FDI flows as
the FII flows tend to increase liquidity
significantly.
3. In general, Rupee dominated debt is
preferred over foreign currency debt.
Select the correct answer from the following options:
a) 1 and 3
b) 1, 2 and 3
c) 1 and 2
d) 2 and 3

75. Which of the following can be the outcome of

implementation of Direct transfer of Subsidy to
Farmers:
1. Help the Government to target
productive farmers to improve the
agricultural production
2. Bring more transparency in the
subsidy disbursement
3. Avoidance diversion of subsidised
fertilizers for non-agricultural usage
4. Make better availability of fertilisers
to the farmers
Select the correct answer from the codes given
below:
a) 1 and 2
b) 2, 3 and 4
c) 1, 2 and 3
d) 1, 2, 3 and 4
76. For the calculation of IIP, in terms of structured
national industrial classification, which of the
following are considered as components?
1. Mining
2. Manufacturing
3. Electricity
4. Consumer goods
Select the correct answer from the following options:
a) 1, 3 and 4
b) 1, 2 and 3
c) 1 and 4
d) 2 and 3
77. In any economy, the demand will be raised when,
which of the following occurs?
1. Increase in public expenditure
2. Reduction in taxation
3. Increase in population
4. Deficit financing
5. Increase in exports
Select the correct answer from the following options:
a) 1, 3 and 4
b) 1, 2 and 3
c) 1, 2, 3, and 5
d) All the above

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74. Identify the incorrect pairs from the following:

1. Direct tax Long term gain tax
2. Indirect tax Fringe benefit tax
3. Presumptive tax MAT
Select the correct answer from the following options:
a) 1 and 3
b) Only 3
c) 1 and 2
d) Only 2

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78. During inflation, which of the following factors

can act as supply side constraints?
1. industrial disputes
2. shortage of factors of production
3. natural calamities
4. hoarding of goods
Select the correct answer from the following options:
a) 1, 3 and 4
b) 1, 2 and 4
c) 1 and 4
d) All the above
79. Consider the following:
1. National Pharmaceutical Pricing
Policy, 2012 recently included the
anti-cancer drug under the National
List of Essential Medicines.
2. The Indian Patents Act as amended
in 2005 contains provisions for issue
of Compulsory License for patented
drugs.
Select the correct answer from the codes given
below:
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
80. Consider the following statements:
1. The nodal ministry for Swachh Bharat
Mission is Ministry of Housing and Urban
Poverty Alleviation.
2. Ministry of Urban development is the nodal
for HRIDAY Scheme
Select the correct answer from the following options:
a) Only 1 is correct
b) Only 2 is correct
c) Both 1 and 2 are correct
d) Neither 1 nor 2 is correct
81. To check the menace of counterfeiting of
banknotes, the RBI has initiated several
measures. Which of the following are parts of these
measures?
1. New security features were added to
banknotes in all denominations during the
year 2005-06.
2. RBI regularly conducts training programmes
on detection of counterfeit notes for
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employees/officers of banks and other
organizations handling large amount of cash.
3. Posters on Know Your Banknotes are also
displayed at the bank branches.
Select the correct answer from the codes given
below:
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) 1, 2 and 3
82. Consider the following:
1. The export and import of agricultural
products including food grains, in
India, is regulated under Foreign
Trade Development Regulation Act.
2. The Government is taking steps to
discourage both imports and exports
of agriculture products especially
food
grains
through
various
measures and incentives under
Foreign Trade Policy
Select the correct answer from the codes given
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
83. One of the major strategies of the National
Telecom Policy-2012 is to orient, review and
harmonise the legal, regulatory and licensing
framework in a time bound manner to enable
seamless delivery of converged services in
technology and service neutral environment. Which
of the following are correct in this regard?
1. It simplifies the licensing framework in order
to facilitate converged high quality services.
2. It tries to encourage indigenous manufacturing
and R&D, entrepreneurship and IPR creation
in the field of telecom products and service
under the 12th five year plan.
3. It strive to develop an eco-system for
broadband and also work towards a right to
broadband.
Select the correct answer from the codes given:
a) Only 1
b) 1 and 2
c) Only 2
d) 1, 2 and 3
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84.The RBI has recently introduced a new uniform

cheque standard called Cheque Truncation System.
The introduction of this system was needed on
account of:
1. Growing use of multi-city and payable-atpar cheques at any bank
2. Growing number of domestic and foreign
banks
3. Increasing popularity local processing for
speed clearing of outstation cheques
Select the correct answer from the codes given
below:
a) 1 only
b) 2 and 3
c) 1 and 3
d) 1, 2 and 3
85. RBI in India is responsible for efficient
structuring of Indian Banking System. In this
context, it has the power to regulate:
1. Commercial banks
2. Urban co-operative banks
3. NBFIs
Select the correct answer from the following options:
a) Only 1
b) Only 2
c) 1 and 2
d) All the above

87. To obviate the environmental degradation due to

mining operation, which of the following measure
can help?
1. Designing the projects on the principle of
Sustainable Development with due regard to
safety, conservation and quality in eco-friendly
manner at the planning stage itself.
2. Adopting the latest mining equipment with
higher & optimum capacity and the latest
mining technologies
3. Carrying out Extensive plantation on abandoned
/ degraded land / mined out areas.
Select the correct answer from the codes given
below:
a) 1 only
b) 2 and 3
c) 1 and 3
d) 1, 2 and 3
88. The Central Government has recently decided to
allow Qualified Foreign Investors (QFIs) to directly
invest in Indian equity market in order to
1. widen the class of investors,
2. attract more foreign funds
3. reduce market volatility
4. to deepen the Indian capital market
Select the correct answer from the codes given
below:
a) 2 and 3
b) 1 and 2
c) 2, 3 and 4
d) 1, 2, 3 and 4
89. In spite of rapid growth and progress in Indian
Banking system, there are adverse impacts on
Banking system due to:
1. High loans to blue chip companies
2. High competition among private banks.
3. Loans without collateral deposits to rural
mass
4. Double financial repression of SLR and PSL
Select the correct answer from the following options:
a) 1, 3 and 4
b) 1, 2 and 3
c) 1, 2 and 4
d) All the above

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86. Government proposes to enhance existing cold

storage capacity in the country by providing
assistance for setting up of cold storages through
various schemes. Which of the following schemes
are parts of these?
1. National Horticulture Mission
2. Horticulture Mission for North East
and Himalayan States
3. Scheme of National Cooperative
Development Corporation
4. PMs Krishi Sinchayee Yojana
Select the correct answer from the codes given
below:
a) 1 and 2
b) 2 and 4
c) 1, 2 and 3
d) 1, 2, 3 and 4

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90. Which of the following were the government

measures to control the rapidly increasing NPAs
among banks and to promote Indian Banking
system?
1. One time settlement scheme
2. Lead bank scheme
3. SARFAESI Act-2002
4. Capital Adequacy Ratio
5. BASEL norms
Select the correct answer from the following
options:
a) 1, 3 and 4
b) 1, 2 and 3
c) 1, 3, 4 and 5
d) All the above
91. Which of the following were the additional
recommendations given by the Second Narashiman
Committee on Banking sector reform?
1. Concept of Narrow banking
2. More professionalization of Banking Boards
3. Abolition of Banking Recruitment Board
Select the correct answer from the following options:
a) 1 and 3
b) 1, 2 and 3
c) 1 and 2
d) 2 and 3
92. According to the Ministry of Rural
Developments Greening Agenda for rural
development schemes, which of the following refers
to green outcomes?
1. Improved
natural
resource
conservation
2. Increased efficiency of resource use
3. Reduced inequality in the society
4. Strengthened climate resilience of
communities
5. Contribution to climate change
mitigation
Select the correct answer from the codes given
below:
a) 1, 2 and 3
b) 1, 2, 3 and 4
c) 1, 2, 4 and 5
d) 1, 2, 3, 4 and 5

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93. Which of the following, in India, constitute the
Forex reserve?
1. Foreign currency assets
2. SDR
3. Gold
4. FDI
Select the correct answer from the following options:
a) Only 1
b) Only 2 & 3
c) 1, 2 and 3
d) All the above
94. Consider the following statements in regard to
Government bonds:
1. Short term bonds are also called Treasury
Bills, which have maximum duration of 180
days.
2. Long term bonds are also called Dated
securities.
3. Government bond in India are issued only to
Banks and Financial institutions.
Select the correct answer from the following options:
a) 1 and 3
b) 1, 2 and 3
c) 1 and 2
d) 2 and 3
95.The main function of the Finance commission is
to facilitate fiscal federalism in India. For this it
determines the revenue gap of each state and
provides for filling up the gap through
1. Schemes of devolution
2. Distribution of taxes and duties
3. Grants in aid
4. Plan formulation
Select the correct answer from the codes given
below:
a) 1,2 & 3
b) 2,3 & 4
c) 2 & 3
d) 1,2,3 & 4
96. Which of the following can be attributed to the
failures of Indian Planning?
1. Growing inflationary tendencies
2. Failure to keep up with changes in
technologies.
3. Growing inequalities
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4. Slow progress in the generation of

employment opportunities.
Select the incorrect answer from the following
options:
a) 1, 3 and 4
b) 1, 2 and 3
c) None of the above
d) All the above
97. Which of the following measures constitute the
Selective Qualitative measures under the Credit
control methods of RBI?
1. Moral suasion
2. Open market operation
3. Rationing of credit
4. Direct action
Select the correct answer from the following options:
a) 1, 3 and 4
b) 1, 2 and 3
c) 1 and 2
d) 1, 2, 3 and 4
98. Consider the following in regard to the Scheme
of Rural Self Employment Training Institute
(RSETI)?
1. The Ministry of Rural Development has
established RSETIs in all the rural
districts of the country.
2. These institutes are for the purpose of
providing opportunities to the rural youth
for their skill up gradation leading to
self-employment
Which of the above statements is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
99. Which of the following phenomenon is always
good for the growth and progress of an economy?
a) Creeping inflation
b) Galloping inflation
c) Hyperinflation
d) None of the above

PRACTICE SESSIONS 2015

a) Ministry of Agriculture
b) NABARD
c) Indian Farmers Fertiliser
Limited
d) State Bank of India

Cooperative

101. The ill-effects of money laundering are seen all

over the world on almost all the sectors of life. In this
regard, which of the following could be the
significant economic ill-effects?
1. Collapse of banks
2. Errors in economic policy resulting in
artificially inflated financial sectors
3. Increased level of crime and corruption
Select the correct answer from the following options:
a) 1 and 3
b) 1 and 2
c) 2 and 3
d) 1, 2 and 3
102. Which of the following are correct in regard to
Petroleum Planning and Analysis Cell?
1. Petroleum Planning & Analysis Cell
(PPAC) works under the Ministry of
Petroleum and Natural Gas.
2. It is the one responsible for
administration of subsidy on PDS
Kerosene and Domestic LPG.
3. It has the responsibility to analyse the
trends in the international oil market and
domestic prices.
4. It has to develop a cooperative
framework for exchange of information
and conduct of studies with other
countries and international organisations
in the energy sector.
Select the correct answer from the codes given
below:
a) 2 and 3
b) 1 and 2
c) 2, 3 and 4
d) 1, 2, 3 and 4

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100. The concept of "Farmers Club" with the motto

of One farmers club in One Village" has been
launched by
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103. Consider the following statements in regard to

Bringing Green Revolution to Eastern India:
1. It is a sub-scheme of National Food
Security of Mission.
2. Under this scheme the Eastern Region of
the country comprising of Assam, Bihar,
Jharkhand, Eastern UP, Chhattisgarh,
Orissa and West Bengal.
3. The productivity levels of rice and ricebased cropping systems are about the
lowest in this region when compared
with that of other rice producing states.
Select the correct answer from the codes given
below:
a) Only 1 is correct
b) 1 and 3 are correct
c) 2 and 3 are correct
d) 1, 2 and 3 are correct
104. Recently the government has taken several
measures to revive the aviation industry and ensure
long term viability of the sector. Which of the
following are the parts of those measures?
1. Director General of Foreign Trade has
allowed direct import of ATF by
airlines on actual user basis.
2. ECB upto $ USD 1 billion has been
permitted for the airlines to meet their
working capital requirement.
3. Operation in domestic sector has been
deregulated.
Select the correct answer from the codes given:
a) 1 only
b) 1 and 2
c) 1 and 3
d) 1, 2 and 3
105. Identify the incorrect pairs from the following:
1. TRIMS apply to the domestic regulations a
country applies to foreign investors
2. TRIPS introduced intellectual property
law into the international trading system
3. GATS to extend the multilateral trading
system to service sector
Select the correct answer from the following options:
a) All the above
b) 1 and 2
c) 2 and 3
d) None is incorrect
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106. Which of the following are the recent initiatives
under the MGNREGA?
1. The basket of permissible activities has been
expanded to make it more meaningful.
2. Electronic fund management system (eFMS)
in all states has been initiated in a phased
manner to reduce delay in payment of wages.
3. Additional employment over and above 100
days per household in notified droughtaffected talukas/ blocks is now permissible.
4. Convergence of the MGNREGA with the
Total Sanitation Campaign (TSC) has been
undertaken.
Select the correct answer using the codes given
below:
a) 1, 2 and 3
b) 2, 3 and 4
c) 1, 3 and 4
d) 1, 2, 3 and 4
107. Find the incorrect pair from the following in
regard classification of NPAs:
1. Sub-standard more than 12 months
2. Doubtful more than 90 days
3. Loss cannot be returned
Select the correct answer from the following options:
a) Only 1
b) Only 2
c) 1 and 2
d) All the three
107. Consider the following about G-secs:
1. The Government securities comprise dated
securities issued by the Government of India
and state governments as also, treasury bills
issued by the Government of India.
2. Reserve Bank of India manages and services
these securities through its public debt
offices located in various places as an agent
of the Government.
3. Government securities, also called the gilt
edged securities or G-secs, are not free from
default risk but also provide reasonable
returns and, therefore, offer the most
suitable investment opportunity to provident
funds.

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Select the correct answer:

a) 1 & 2 only
b) 2 & 3 only
c) All the above.
d) 1 & 3 only.
108. Which of the following can be effects of
declining oil prices?
1. Increased monetary easing
2. Increased spending power to households
3. Decreased profit margins for oil companies
in India.
4. Increased input costs as referenced by WPI.
Select the correct answer:
a) 1 & 2 only
b) 1, 2 & 3 only
c) All the above.
d) None of the above.
109. Which of the following would result in fiscal
consolidation?
1. Ramping up investments
2. Rationalizing subsidies
3. Creating a clean tax policy environment
4. Decreasing disinvestment
Select the correct answer:
a) 1 & 2 only
b) 1, 2 & 3 only
c) All the above.
d) 1, 2 & 4 only.
110. Indian private investment is clouded by which
of the following?
1. Strong corporate balance sheets.
2. Impaired banking system
3. Difficulty to exit
4. Deficiencies in PPP mode in Infrastructure.
Select the correct answer:
a) 1, 2 & 4 only
b) 2, 3 & 4 only
c) All the above.
d) 2 & 3 only.
111. Which of the following are correct about price
subsidies?
1. It helps the some poor in short term.
2. Highly progressive in nature.
3. Introduce price distortions.
4. Have self perpetuating character.
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Select the correct answer:
a) 1, 2 & 3 only
b) 1 & 3 only
c) 1, 3 and 4 only
d) 1 & 2 only.
112. Direct cash transfers will not result in
a) Increased consumption.
b) Decreased asset ownership.
c) Decrease food security issues
d) Increase fiscal savings
113. Balance sheet syndrome in private and corporate
sector in result of
1. Weak profitability
2. Over indebtedness
3. Weak institutions relating to bankruptcy
4. Risk aversion in infrastructure and financing.
5. Significant portion of infrastructure financed
by market.
Select the correct answer:
a) 1, 2 & 3 only
b) 2, 3 & 5 only
c) All the above.
d) 1, 2, 3 & 4 only.
114. Weak investment in railways has lead to
1. Congestion of traffic
2. Strained capacity
3. Poor services
4. Improved financial health
5. Deteriorating competiveness
6. Decreased pressure on roads
Select the correct answer:
a) 1, 2 & 3 only
b) 1, 2, 3 & 5 only
c) 1, 2, 3, 5 & 6.
d) All the above.
115. Which of the following policy interventions
would help Make in India initiative?
1. Improved business environment
2. Eased tax structure and regulations
3. Industrial policy
4. Protectionism
5. Import subsidies.

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Select the correct answer:

a) 1, 2 & 3 only
b) 1, 2, 3 & 5 only
c) 1, 2, 3 & 4.
d) All the above.

PRACTICE SESSIONS 2015

b) Forest cover as a criterion in the horizontal
formula.
c) 42% devolution in place 32% for vertical
division.
d) Fiscal discipline is removed as a criterion
from the horizontal formula.

116. Which are domestic factors responsible for

slump in export growth?
1. Weak infrastructure.
2. Challenging labour laws.
3. Federal bank dynamics
4. Euro zone protectionism
5. Rising wages
6. Scarcity of skilled labour
Select the correct answer:
a) 1, 2, 4 & 6 only
b) 1, 2, 5 & 6 only
c) 1, 2, 3 & 4 only.
d) All the above.
117. The Gender Inequality Index (GII) is an index
for measurement of gender disparity that was
introduced in the 2010 Human Development Report
20th anniversary edition by the United Nations
Development Programme (UNDP). The GII
measures gender inequalities in three important
aspects of human development. Which of the
following is incorrect?
a) Reproductive health measured by maternal
mortality ratio and adolescent birth rates;
b) Empowerment, measured by proportion of
parliamentary seats occupied by females and
proportion of adult females and males aged
25 years and older with at least some
secondary education;
c) Economic status expressed as labour market
participation and measured by labour force
participation rate of female and male
populations aged 15 years and older.
d) Quality of life measured by the kind of
divorce laws, penal provisions for crimes and
freedom in marital relationship.

119. For the purposes of the Green Economy

Initiative (GEI), UNEP has developed a working
definition of a green economy as one that results in
improved human well-being and social equity, while
significantly reducing environmental risks and
ecological scarcities. Which of the following are
correct about GEI?
a) Promoting the Green Economy Report and
related research materials, which will analyse
the macroeconomic, sustainability, and
poverty reduction implications of green
investment
b) Providing advisory services on ways to move
towards a green economy in poorest
countries.
c) Reduced investment in a range of sectors
from renewable energy to sustainable
agriculture and providing guidance on
policies
d) None of the above are correct.
120. Which of the following are incorrect about
Bitcoins?
a) Bitcoin is a form of digital currency, created
and held electronically. No one controls it.
b) Bitcoins are printed, like dollars or euros
they're produced by people.
c) Bitcoin is a payment system invented by
Satoshi Nakamoto, who published the
invention in 2008 and released it as opensource software in 2009.
d) All of the above.

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118. 14th Finance Commission has implemented

number of changes in the formula for division of
resources. Which of the following is incorrect?
a) Horizontal formula where 2011 population is
added in place of 2001.
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