Economy previous year questions

Every year new budget, economic survey, new reports, schemes and every one loses their minds. Take a look at the questions being asked and it will soothe your nerves. One can easily and quickly cover economy syllabus by using only 2 sources at center for this topic. Keep NCERT macro as the guiding light and use India Year Book as the supplement. IYB has links in each section, visiting these websites of govt institutions puts a solid print on memory and also gives authentic reliable material which can be found anywhere else in the market.

2014

If interest rate is decreased in an economy, it will---increase the investment expenditure in economy

Which organization brings out World Economic Outlook----IMF

Which are covered under Union budget as non plan expenditure---defence expenditure, interest payments, salaries and pensions, subsidies

Which are associated with 'planning' in India---NDC, Parliament, FC, MORD, MOUD

Sales tax paid while purchasing toothpaste is a ----tax imposed and collected by state govt

Venture capital means---long term start up capital provided to new entrepreneurs

Main objective of 12th FYP is---faster, sustainable and more inclusive growth

Wrt balance of payments, which is under current account----balance of trade, balance of invisibles, foreign assets, SDRs

Facilities beneficiaries can get from services of BCs in branchless areas---enables beneficiaries to draw their subsidies and social security benefits in villages, to make deposits & withdrawals

Purpose of Statutory Reserve Requirements----enable central bank to control amount of advances banks can create, make people's deposits with banks safe and liquid, prevent commercial banks from making excessive profits, force banks to have sufficient vault cash to meet their day to day requirements

2013

PSL by banks in India constitutes the lending to---agriculture, micro and small enterprises, weaker sections, education, housing, export credit(etc)

To obtain full benefits of demographic dividend India should-----promote skill development

Rise in general level of prices may be caused by----increase in money supply, decrease in aggregate level of output, increase in effective demand

Which is included in India's forex reserves----FCA foreign currency assets, gold, SDRs

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, usually a year

RBI regulates the commercial banks in matters of----liquidity of assets, branch expansion, merger of banks, winding up of banks

Increase in Bank rate generally indicates that the----Central bank is following a tight money policy

In India, deficit financing is used for raising resources for----economic development

Most inflationary among----repayment of public debt, borrowing from public to finance a budget deficit, borrowing from banks to finance a budget deficit, creating new money to fiance budget deficit

Which banks grant direct credit assistance to rural households---RRB, Land Development Banks, NABARD

Which of following constitute Capital account---foreign loans, FDI, portfolio investment, private remittances

Inflation benefits debtors, hurts bond holders

Disguised unemployment--->marginal productivity of labour is zero

Decreasing order of liquid assets ---currency>demand deposit with banks>savings deposits with banks>time deposits with banks

OMO refers to----purchase and sale of government securities by RBI

Supply of money regaining the same when there is an increase in demand for money, there will be---an increase in rate of interest

National income of a country for a given period is equal to----money value of final goods and services produces

2012

Which are essentially parts of 'inclusive governance' --- estb effective DPCs in all dists, increasing govt spending on health, strengthening MDMS, permitting nbfc in banking

In nrhm, what are jobs of ASHA---accompanying women to health facility for antenatal checkup, using pregnancy test kits for early detection of pregnancy, providing info on nutrition and immunization, conducting delivery of baby

Multi-dimensional poverty index developed by Oxford Poverty and Human Development Initiative with UNDP support covers---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

Noticeable features of reco of 13th FC---design for GST and compensation package linked to adherence to proposed design(YES), devolution of specified share of central taxes to local bodies as grants(YES), design for creation of lakhs of jobs in next 10 years in consonance with India's demographic dividend

Recent policy initiatives to promote manufacturing sector---set up of NIMZ, single window clearance, estd TADF tech acq and dvlpmt fund

Order of demographic transition phases: (high birth and death rate)-->(high birth, low death)-->(low birth, low death rate)

8 core industries making up IIP

Janani suraksha yojana is to---(objectives)

RBI acts as banker's bank, which means---other banks retain their deposits w/ RBI, RBI lends funds to commercial banks in times of need, RBI advises commercial banks on monetary matters

Capital gains arise when--- there is an increase in sales of a product there is a natural increase in value of property owned, you purchase a painting and there is a growth in its value due to increase in its popularity

Which measures result in increase in money supply in economy---purchase of gsecs from public by central bank, borrowing by govt from central bank

Which includes FDI in India----subsidiaries of companies in India, majority foreign equity holding in Indian companies, companies exclusively fin by foreign companies, portfolio investment

Price of any currency in international market is decided by the ---demand for goods/services provided by country concerned, stability of govt of concerned country economic potential of country in question

Basic aim of Lead Bank Scheme is that----individual banks should adopt particular districts for intensive development

2011

India has experienced persistent and high food inflation in recent past because----increasing incomes and significant change in consumption patterns, food supply chain has structural constraints, gradual switch over to cultivation of commercial crops with steady decrease in area under cultivation of food grains

In terms of economy, visit by foreign nationals to witness XIX commonwealth games in India amounts to ------ export

Appropriate description of "fiscal stimulus" is ---- an intense affirmative action of govt to boost economic activity in the country

Actions that can help reduce CAD -- devaluing domestic currency, adopting suitable policies which attract greater FDI and more FIIs, reduction in export subsidy

Rapid increase in rate of inflation is sometimes attributed to base effect which means---- impact of price levels of previous year on calculation of inflation rate

Features of VAT ---- multi-point destination based system of taxation, tax levied on value addition at each stage of transaction in production-distribution chain, tax on fianl consumption of goods or services and must ultimately be borne by the consumer, basically subject of central govt with state govt as only a facilitator for successful implementation

"Closed economy" is an economy in which --- no import/export takes place

Karl Marx explained process of class struggle with help of ----- Dialectical materialism

Both FDI and FII are related to investment in a country, difference is----FII helps increase capital availability in general, while FDI only targets specific sectors

Mega food park scheme includes--- to provide good infra for food processing industries, to increase processing of perishable items and reduce wastage, to provide emerging and eco-friendly food processing technologies to entrepreneurs

Micro finance is provision of financial services to people of low income groups. This includes both consumers and self employed. Services rendered under micro finance are --- credit facilities, savings facilities, insurance facilities, fund transfer facilities

Wrt Look East policy of India----India wants to establish itself as imp regional player in East Asian affairs, wants to restore historical and cultural ties with neighbours in SE and E Asia, wants to plug vacuum created by termination of cold war

Regarding IMF ---- it grants loans to only member countries

Offering of "teaser loans" by commercial banks is a cause of concern because --- teaser loans are considered to be an aspect of sub prime lending and banks amy be exposed to risk of defaulters in future

For Indian economy, ----- growth rate of GDP has steadily increased in last 5 years, growth rate in per capita income has steadily increased in last 5 years (YES)

In India, highest share in disbursement of credit to agriculture and allied activities comes from ---- commercial banks coop banks, RRBs, MFIs

Reasons for govt disinvesting equity in CPSEs --- govt intends to use revenue earned from disinvestment mainly to pay back external debt, govt no longer intends to retain management control of CPSEs

Economic growth is usually coupled with----- inflation deflation, stagflation, hyperinflation

Lowering of Bank rate by RBI leads to ---- more liquidity in the market

Demographic dividend of India is due to---- high population in age group of 15-64 years

Aam Aadmi Bima Yojana features(scheme from 2007)

What benefits are available to the disabled in India?

What rights come under the Universal Declaration of Human Rights

What can aid furthering govt objective of 'inclusive growth' --- promoting SHG, promoting MSME, implementing RTE

2010

Which of the following indicates a mechanism used by commercial banks for providing credit to the govt ---- SLR

Wrt NBFCs --- the cant engage in acq of g-secs, they cant accept demand deposits like savings account

What are targets and provs under FRBMA 2003

Lot of FDI comes from Mauritius because ---- we have DTAA with them(and they don’t have capital gains tax)

Size of economy and populations of China and India wrt other BRICS countries

Objective of NFSM is to increase production of certain crops(rice, wheat and pulses only) thru area expansion and productivity enhancement in a sustainable manner

Main ways of providing "fiscal stimulus" --- cut tax rates, raise govt spending

WPI, CPI--- how often are they released, weights of items in it, base years?

In India's FYPs, a shift in pattern of industrialization, with lower emphasis on heavy industries and more on infra begins in ----- 6th plan

Wrt Consumer Disputes Redressal at district level in India ----- District Forum entertains complaints where value of goods or services does not exceed 50 lakh INR

What is regulated by FMC ---- commodities futures trading

Wrt Banking Ombudsman ---- it is appointed by RBI (YES), it can consider complaints from NRIs with accounts in India (YES), it provides services for free (YES), it is quasi judicial and its orders are not final and binding---one can appeal to Appellate authority(dy gov of RBI)

Wrt LLP firms --- partnership and mgt need not be separate, internal governance may be decided by mutual agreement among partners, it is corporate body with perpetual succession, it is body corporate and legal entity separate from its partners, one partner is not liable for another partner's misconduct or negligence

Check 5 yearly trends of contributions of different tax streams to gross revenue

In India, taxes on transactions in Stock exchanges and futures market are ---- levied by Union, collected by states

2009

Definition of IMR --- number of newborns dying under a year of age per 1000 live births

1st telegraph line in India was laid between Calcutta and Diamond Harbour

1st Export Processing Zone in India was setup at Kandla

Which are Direct Taxes --- Fringe Benefit tax, Interest tax, securities transaction tax

Dulhasti power station and Baglihar power projects are on --- Chenab

BK Chaturvedi committee was about ---- price reform in oil sector

Emergency proclamation, new elections and Janata party govt came during FYP # ---- 5

"Energy Statistics" publication is brought out by ---- CSO

MMTC is India's largest international trading org (YES)

Neelachal Ispat Nigam Limited was set up by MMTC jointly with Govt of Orissa (YES)

Commission for Agricultural Costs and Prices CACP sets MSP for 24 crops

[Minimum support prices are currently announced for 24 commodities including seven cereals (paddy, wheat, barley, jowar, bajra, maize and ragi); five pulses (gram, arhar/tur, moong, urad and lentil); eight oilseeds (groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed and nigerseed); copra, raw cotton, raw jute and virginia flu cured (VFC) tobacco]

[Kharif : Paddy, Jowar, Bajra, Ragi, Maize, Tur(ahar), moong, urad, groundnut, sunflower, soyabean, sesamum, nigerseed, cotton] [wheat, barley, gram, lentil(masur), rapeseed/mustard, safflower] [other commercial: Jute, sugarcane, copra]

HQ of AWBI animal welfare board of India is at --- Chennai

2nd FYP emphasized on estb of heavy industries (YES), 3rd FYP introduced concept of import substitution as strategy for industrialization (YES)

NSD national school drama set up by Sangeet Natak Akademi in 1959, highest honour conferred by Sahitya Akademi on writer is by electing him its fellow (YES)

2008

National Center for Cell Science Pune, Center for DNA Fingerprinting and Diagnostics Hyderabad, National Brain Research Center Gurgaon

2007

SS Tarapore committee was constituted by RBI to set out framework for fuller capital account convertibility

Participatory Notes are associated with ----- Foreign Institutional Investors undp, kyoto protocol, CFI

Repo rate is rate at which RBI borrows from banks, while bank rate is rate at which banks borrow from RBI

Value of 1 for Gini coefficient implies perfect income equality

MCA 21 is major initiative taken up by GOI in areas of --- e governance

Contribution of different sectors to GDP ---[Services, Industry, Agriculture]

Correct decreasing order of production---Rice>wheat>coarse cereals>pulses

2006

Balance of payments is a better picture of country's economic transactions with world than Balance of trade, because it accounts for both visible and invisible items

FRBMA concerns both fiscal and revenue deficit

Service tax is a ----indirect tax levied by central govt

Check trade profile of India, % of world trade, max to which countries, from which countries

2005

NYSE is oldest stock exchange in world, Sensex is based on 50 most imp stocks available on BSE

2004

India continues to depend on imports to meet requirement of oilseeds in country because --- farmers prefer to grown foodgrains with highly remunerative prices, most of cultivation of oil seed crops continue to depend on rainfall, oils from seeds of tree origin and rice bran have remained unexploited

India doesn’t export natural rubber because 97% of India's demand for natural rubber is met from domestic production

Rural sanitation is a subject in State list

NHB is wholly owned subsidiary of RBI and SIDBI is subsidiary to IDBI [check this might have changed now]

Check reco of 14th FC

Check MSP and FRP, APMC and FCI, Shanta Kumar

2003

Debenture holders of a company are its --- creditors shareholders, debtors

Check Level of FDI % allowed in various sectors

Check new FTP foreign trade policy---released this year

2002

WPI series, components, weightage

Components of M3 broad money

Might have changed---Check---External liabilities reported in Union budget are not based on historical exchange rates, continued high borrowing has kept real interest rates high in the economy, upward trend in ratio of fiscal deficit to GDP in recent years has an adverse effect on private investments, interest payments is single largest component of non-plan revenue expenditure of Union govt

India's external debt---owed to whom?

WIPO world intellectual property org-- UN org, HQ at Geneva

WDR world development report is annual publication of ---- IBRD/WB

Country is in debt trap means----it has to borrow to make interest payments on outstanding loans

2001

Prices at which govt purchases food grains for maintaining PDS and building buffer stocks is known as ----procurement prices

NAIS and other insurance schemes---what do they cover

Internal debt comprises of ---market borrowing, T bills, Special securities issued to RBI

Check if RBI ---- handles borrowing program(who handles), acts as agent of govt in IMF(who reps India there)

Which are called direct taxes, which are indirect taxes

What is UNCTAD

What are WB group

National income = GNP-depreciation-IDT+subsidies

WPI is brought out by which ministry,

2000

Definitions of boom(business activity at high level with increasing income, output and employment at macro level), recession(gradual fall of income, output and employment with business activity in low gear), depression(unprecedented level of under employment and unemployment, drastic fall in income, output employment), recovery(steady rise in general level of prices, income, output, employment)

Gilt edged market means ---- market of g secs

Y = C + I + G + (X-M)

1st Indian state to have its HDR prepared and released by Amartya Sen in Delhi is ---- MP

1999

From balance sheet one can assess---size and compostion of assets and liabilities of a company(cant say about profitability, market share)

Devaluation of a currency may promote exports, because, price of country's products in international market may fall due to devaluation

 1998

White goods---items purchased for conspicuous consumption --- TV, AC, fridge, cooler

Region that supplies max import --- arrange in order

Dow Jones--USA, Hang Seng--Seoul, FTSE-100--London

1997

EU members, Eurozone members, difference, EU org structure

Broad money M3 consists of?

HDI calculation method

Non-plan expenditurs --- subsidies, interest payments, defence expenditure, maintenance expenditure for infra created in previous plans

NI=NNP at FC = NNP at MP - IDT + subs

1996

Arrange top 5 export items of India in increasing order, top 5 imported items

1995

Check regulation areas of various financial regulatory authorities--- SEBI, RBI

Objectives and functions of CACP

FCNR(A) and FCNR(B)

What comes under plan and non-plan expenditures, is this classification required statutorily

WB group banks and functions

Agricultural income tax is assigned to State govt by ---- Constitution FC, ISC, NDC