Quiz 190 – Economics Previous Year’s Questions with Explained Answers

Which one of the following Five year plans recognized human development as the core of all development efforts?

(a) the Third Five Year Plan

(b) the Fifth Five Year Plan

(c) the Sixth Five Year Plan

(d) the Eighth Five Year Plan

Explanation:

Eighth Five Year Plan was based on the John W. Millar model. The prominent objective of eight five year plan was “Human Resources Development” Eight five year plan was begun from 1 April, 1992 to 31 March 1997.

Ans- (d)


 

Which of the following are among the non – plan expenditures of the Government of India?

  1. Defense expenditure
  2. Subsidies
  3. All expenditures liked with the previous plan periods
  4. Interest payment

Codes:

(a) 1 and 2

(b) 1 and 3

(c) 2 and 4

(d) 1, 2, 3 and 4

Explanation:

Non-plan expenditures included Subsidies, defense and interest payment. The expenditure which is earned by Government as the non-development issues called non-plan expenditure. These expenditures are responsible for Fiscal deficit enhancement.

Ans- (d)


 

Which of the following pairs are correctly matched?

  1. Increase in – Monetary expansion
  2. Low import growth rate in India – Recession in Indian industry
  3. Euro-issues – Shares held by Indian companies in European countries
  4. Portfolio investment – Foreign institutional investors.

Codes:

(a) 1, 2 and 4

(b) 3 and 4

(c) 1, 2 and 3

(d) 1, 2, 3 and 4

Explanation:

Match number 3 is in correct because Euro issue is not related to the share held by Indian companies in European countries all other pairs are correctly matched.

Ans- (a)


 

Corporation tax:

(a) is levied and appropriated by the states

(b) is levied by the Union and collected and appropriated by the states

(c) is levied by the Union and shared by the Union and the states

(d) is levied by the Union and belongs to it exclusively

Explanation:

Corporation tax is a direct tax. It is levied on profit of companies. Corporation tax is levied by the Union and belongs to it exclusively. It is revenue is not shared by states.

Ans– (d)


 

Which of the following constitute the World Bank?

  1. International Bank for Reconstruction and Development
  2. International Finance Corporation
  3. International Development Association
  4. International Monetary Fund

Codes:

(a) 1, 2 and 3

(b) 1 and 2

(c) 3 and 4

(d) 1, 2, 3 and 4

Explanation:

The World Bank was established in 1945. It included the institution is International Finance Corporation (IFC) 1956, International Development Association (IDA) 1960 MIGA (1988), and ICSID 1966.

Ans- (a)


 

Agricultural income tax is assigned to the State Government by:

(a) Finance Commission

(b) National Development Council

(c) Inter-State Council

(d) The Constitution of India

Explanation:

Agricultural income tax is assigned to the States Government by the Finance Commission.

Ans- (a)


 

Which one of the following is not an instrument of selective credit control in India?

(a) regulation of consumer credit

(b) Rationing of credit

(c) Margin requirements

(d) Variable coast reserve rations

Explanation:

Regulation of consumer credit, Rationing of credit and Margin requirement are instruments of selective credit controls against it Bank rate, caste Reserve ratio, and market operation are included in qualitative credit control system monetary policy.

Ans- (d)


 

Which one of the following is true regarding the Jawaharlal Rozgar Yojana (JRY)?

(a) It was launched during the Prime Ministership of Indira Gandhi

(b) It aims at creating one million jobs annually

(c) The target group of JRY are the urban poor living below the poverty line

(d) Under the scheme 30% of the employment generated is reserved for women

Explanation:

Statement (d) is true, because Under Jawaharlal Rozjar Yojana (JRY) 30% of the employment generated is reserved for women. It was started in 1984-90 to provide employment opportunities for rural power and to develop basic infrastructure of rural areas.

Ans- (d)


 

Bank Rate implies the rate of interest:

(a) paid by the reserve Bank of India on the Deposits of Commercial Banks

(b) charged by Banks on loans and advances

(c) payable on Bonds

(d) at which the Reserve Bank of India discounts the Bills of Exchange

Explanation:

Bank rate implies the rate of interest at which the RBI discounts the Bills of Exchange. In other words, it is the rate of interest at which RBI provides loans to the commercial bank. It is an instrument of monetary policy to effluence money supply in economy supply in economy.

Ans- (d)


 

Consider the following:

  1. Industrial Finance Corporation of India
  2. Industrial Credit and Investment Corporation of India
  3. Industrial Development Bank of India
  4. Unit Trust of India

 The correct sequence in which the above were established is:

(a) 1, 2, 3, 4

(b) 1, 3, 2, 4

(c) 4, 3, 2, 1

(d) 1, 4, 3, 2

Explanation:

The correct sequence in which the above institutions are established is Industrial Finance Corporation:

  1. July, 1948
  2. Industrial Credit and Investment Corporation of India: 5 Jan, 1955
  3. UTI: 26 Nov. 1963
  4. IDBI: 1, July, 1964

Ans- (a)

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