Page : 4 - UPSC Economics

21032.Participatory Notes (PNs) are associated with which one of the following?

Consolidated Fund of India

Foreign Institutional Investors

United Nations Development Programme

Kyoto Protocol

21033.If the interest rate is decreased in an economy, it will

decrease the consumption expenditure in the economy

increase the tax collection of the Government

increase the investment expenditure in the economy

increase the total savings in the economy

21034.In the context of food and nutritional security of India, enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is/are the constraint/constraints in its wider / greater implementation?

There is no National Seeds Policy in place.
There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops.
There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.

Select the correct answer using the code given below.

1 and 2

3 only

2 and 3

None of these

21035.In the context of Indian economy; which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? [UPSC, Civil Services 2014, Paper 1]

To enable the Central Bank to control the amount of advances the banks can create
To make the people deposits with banks safe and liquid
To prevent the commercial banks from making excessive profits
To force the banks to have sufficient vault cash to meet their day-to-day requirements

Select the correct answer using the code given below.

1 only

1 and 2 only

2 and 3 only

1, 2, 3 and 4

21036.A rise in general level of prices may be caused by

An increase in the money supply
A decrease in the aggregate level of output
An increase in the effective demand

Select the correct answer using the codes given below.

1 only

1 and 2 only

2 and 3 only

1, 2 and 3

21037.Which one of the following is likely to be the most inflationary in its effect?

Repayment of public debt

Borrowing from the public to finance a budget deficit

Borrowing from banks to finance a budget deficit

Creating new money to finance a budget deficit

21038.Which of the following constitute Capital Account?

Foreign Loans
Foreign Direct Investment
Private Remittances
Portfolio investment

Select the correct answer using the codes given below.

1, 2, and 3

1, 2 and 4

2, 3 and 4

1, 3, and 4

21039.Which of the following grants/grant direct credit assistance to the households?

Regional Rural Banks
National Bank for Agriculture and Rural Development
Land Development Banks

Select the correct answer using codes given below.

1 and 2 only

2 only

1 and 3 only

1, 2, and 3

21040.Which one among the following industries is the maximum consumer of water in India?

Engineering

Paper and pulp

Textiles

Thermal power

21041.Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission?

A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design
A design for the creation of lakhs of jobs in the next ten years in consonance with India�s demographic dividend
Devolution of a specified share of central taxes to local bodies as grants

Select the correct answer using the codes given below:

1 only

2 and 3 only

1 and 3 only

1, 2, and 3

21042.Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India?

Services � Industry � Agriculture

Services � Agriculture � Industry

Industry � Services � Agriculture

Industry � Agriculture � Services

21043.With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? [UPSC, Civil Services 2014, Paper 1]

Balance of trade
Foreign assets
Balance of invisibles
Special Drawing Right

Select the correct answer using the code given below.

1 only

2 and 3

1 and 3

1, 2 and 4

21044.Consider the following statements:

Inflation benefits the debtors.
Inflation benefits the bond-holders.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

21045.Disguised unemployment generally means

large number of people remains unemployed

alternative employment is not available

marginal productivity of labour is zero

productivity of workers is low

21046.Economic growth in country X will necessarily have to occur if [UPSC, Civil Services 2013, Paper 1]

there is technical progress in the world economy

there is population growth in X

there is capital formation in X

the volume of trade grows in the world economy

21047.The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?

Deprivation of education, health, assets and services at household level
Purchasing power parity at national level
Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below:

1 only

2 and 3 only

1 and 3 only

1, 2, and 3

21048.With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

Defence expenditure
Interest payments
Salaries and pensions
Subsidies

Select the correct answer using the code given below.

1 only

2 and 3 only

1, 2, 3 and 4

None of these

21049.Priority Sector Lending by Lending by banks in India constitutes the lending to

Agriculture

micro and small enterprises

weaker sections

All of the above

21050.Supply of money remaining the same when there is an increase in demand for money, there will be

a fall in the level of prices

an increase in the rate of interest

a decrease in the rate of interest

an increase in the level of income and employment

21051.To obtain full benefits of demographic dividend, what should India do?

Promoting skill development

Introducing more social security schemes

Reducing infant mortality rate

Privatization of higher education

21052.The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following?

State Bank of India

Reserve Bank of India

ICICI Bank

Life Insurance Corporation of India

21053.What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?

It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below.

1 only

2 only

Both 1 and 2

Neither 1 nor 2

21054.The balance of payments of a country is a systematic record of

All import and export transactions of a country during a given period of time, normally a year

Goods exported from a country during a year

Economic transaction between the government of one country to another

Capital movements from one country to another

21055.The national income of a country for a given period is equal to the

total value of goods and services produced by the nationals

sum of total consumption and investment expenditure

sum of personal income of all individuals

money value of final goods and services produced

21056.The Reserve Bank of India regulates the commercial banks in matters of

liquidity of assets
branch expansion
merger of banks
winding-up of banks

Select the correct answer using the codes given below.

1 and 4 only

2, 3, and 4 only

1, 2, and 3 only

1, 2, 3, and 4

21057.Which of the following measures would result in an increase in the money supply in the economy?

Purchase of government securities from the public by the Central Bank
Deposit of currency in commercial banks by the public
Borrowing by the government from the Central Bank
Sale of government securities to the public by the Central Bank

Select the correct answer using the codes given below:

1 only

2 and 4 only

1 and 3

2, 3, and 4

21058.What does venture capital mean?

A short-term capital provided to industries

A long-term start-up capital provided to new entrepreneurs

Funds provided to industries at times of incurring losses

Funds provided for replacement and renovation of industries

21059.In India, deficit financing is used for raising resources for

economic development

redemption of public debt

adjusting the balance of payments

reducing the foreign debt

21060.In the context of Indian economy, �Open Market Operations� refers to

Borrowing by scheduled banks from the RBI

Lending by commercial banks to industry and trade

Purchase and sale of government securities by the RBI

None of the above

21061.Which of the following are the methods of Parliamentary control over public finance in India?

Placing Annual Financial Statement before the Parliament
Withdrawal of moneys from Consolidated Fund of India only after passing the Appropriation Bill
Provisions of supplementary grants and vote-on-account
A periodic or at least a mid-year review of programme of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office
Introducing Finance Bill in the Parliament

Select the correct answer using the codes given below:

1, 2, 3, and 5 only

1, 2, and 4 only

3, 4, and 5 only

1, 2, 3, 4, and 5

21062.An increase in the Bank Rate generally indicates that the

market rate of interest is likely to fall

Central Bank is no longer making loans to commercial banks

Central Bank is following an easy money policy

Central Bank is following a tight money policy

21063.Consider the following liquid assets:

Demand deposits with the banks
Time deposits with the banks
Savings deposits with the banks
Currency

The correct sequence of these assets in the decreasing order of liquidity is

1 � 4 � 3 � 2

4 � 3 � 2 � 1

2 � 3 � 1 � 4

4 � 1 � 3 � 2

21064.Consider the following specific stages of demographic transition associated with economic development:

Low birthrate with low death rate
High birthrate with high death rate
High birthrate with low death rate

Select the correct order of the above stages using the codes given below:

1, 2, 3

2, 1, 3

2, 3, 1

3, 2, 1

21065.Consider the following statements and identify the right ones.
i. The MGNREGA provides at least 100 days of guaranteed wage employment in a year.
ii. The scheme mandates for 1/3rd participation for women

i only

ii only

both

none

Explanation:
MGNREGA came into effect in 2006 in 200 districts. It aims at enhancing the livelihood security of households in rural areas.

21066.Consider the following statements about MGNREGA and identify the right ones.
i. The disbursement of wages has to be done on monthly basis.
ii. Wages will be paid through their bank or post office accounts.

i only

ii only

both

none

Explanation:
The disbursement of wages has to be done on a weekly basis. Generally, this should not be beyond a fortnight.

21067.Consider the following statements and identify the right ones.
i. The SGSY has been restructured as National Rural Livelihood Mission
ii. It aims at providing at least one member from each identified rural poor household to be brought under SHG.

i only

ii only

both

none

Explanation:
This programme aims at reducing poverty thereby enabling poor households to access gainful self-employment and also skilled wage employment opportunities.

21068.Consider the following statements about Aam Admi Bhima Yojana and identify the right ones.
i. The central government is the nodal agency
ii. The premium of 200 rupees will be borne by the centre and states equally

i only

ii only

both

none

Explanation:
The state government is the nodal agency for this scheme.

21069.Consider the following statements about Aam Admi Bhima Yojana and identify the right ones.
i. 30000 rupees will be payable in case of natural death
ii. 25000 rupees will be payable in case of total permanent disability

i only

ii only

both

none

Explanation:
Under this scheme, rupees 75000 will be payable if it is a case of total permanent disability and rupees 37500 in case of partial disability.

21070.Consider the following statements and identify the right ones.
i. The Janashree Bhima Yojana provides life insurance protection to rural BPL families only
ii. People between 18 and 59 years and who are members of the identified occupational group are eligible.

i only

ii only

both

none

Explanation:
The Janashree Bhima Yojana provides life insurance protection to rural families as well as urban families living below and marginally above povert line.

21071.Consider the following statements and identify the right ones.
i. The National Social Security Fund is created for the organized sectors
ii. The beneficiaries are weavers, rickshaw pullers etc.

i only

ii only

both

none

Explanation:
The National Social Security Fund is created for the unorganized sectors.

21072.Consider the following statements and identify the right ones.
i. The National Rural Health Mission was launched in 2005
ii. Under this scheme, it was decided to set up mobile medical units for each districts by 2009.

i only

ii only

both

none

Explanation:
Under this scheme, over 5 lakh ASHAs- Accredited Social Health Activists were to be available by 2008.

21073.Consider the following statements and identify the right ones.
i. Under Bharat Nirman, 60 lakh houses are to be constructed.
ii. It aims at creating 10 million ha of additional irrigation capacity.

i only

ii only

both

none

Explanation:
Bharat Nirman has 6 components. They are rural telephones, roads ,housing, electrification, drinking water and irrigation.

21074.Consider the following statements and identify the right ones.
i. SSA aims at providing free education for all children between 6 and 14.
ii. It is a fundamental right under the RTE Act of 2009

i only

ii only

both

none

Explanation:
The Sarva Shiksha Abhiyan aims at providing free education for all children between 6 and 14.

21075.Consider the following statements and identify the right ones.
i. The National Planning Committee was set up in 1938
ii. It laid that all key industries that are likely to become monopolistic should be under the government control.

i only

ii only

both

none

Explanation:
The NPC was set up in 1938 by the INC.

21076.Consider the following statements and identify the right ones.
i. The Planning Commission was set up by the Government resolution.
ii. It formulates plans for effective utilization of resources.

I only

ii only

both

none

Explanation:
The Planning Commission was set up in 1950 with the resolution passed by the Government.

21077.5. Consider the following statements and identify the right ones.
i. The NDC came into existence before the Planning Commission
ii. The NDC consists of representatives of both central and state governments.

i only

ii only

both

none

Explanation:
The National Development Council was created much later in 1956.

21078.6. Match the following.
i. 7th FYP - a. modernization, growth
ii. 8th FYP - b. human resource development
iii. 9th FYP-c. equitable distribution and growth with equality
iv. 10th FYP- d. growth with emphasis on human development

i-a, ii-b, iii-c, iv-d

i-c, ii-b, iii-a, iv-d

i-b, ii-c, iii-a, iv-d

i-a, ii-c, iii-d, iv-b

Explanation:
Self reliance and social justice, modernization and growth were the objectives of the 7th five year plan.

21079.Consider the following statements and identify the right ones.
i. NDC comprises PM, all union cabinet members, all CMs, reps from UTs and members of the commissions.
ii. On some occasions, RBI governor can address the meetings.

i only

ii only

both

none

Explanation:
There are occasions where the RBI governor and some other experts were allowed to address the meetings.

21080.Consider the following statements and identify the right ones.
i. The 1st FYP was based on the Harrad Domar model
ii. The main objective was the development of industrial sector.

i only

ii only

both

none

Explanation:
The main objective was the development of agricultural sector and the plan succeeded well.

21081.Consider the following statements and identify the right ones.
i. The 2nd FYP followed the balanced growth model of P C Mahalanobis
ii. It aimed at rapid industrialization.

i only

ii only

both

none

Explanation:
The 2nd FYP followed the unbalanced growth model of P C Mahalanobis that gave favor to some key industries.

Total
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Correct	0
Incorrect	0

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