Economics Questions

1. The headquarters of Allahabad bank is in:
Ans: Kolkata

2. The return on debentures is called:
(a) Dividend         (b) Interest                   (c) Profit
Ans: b


3. A speculator in stock markets who buys stocks anticipating that prices will go up is called:
(a) Bull       (b) Bear      (c) Stag      (d) Cow
Ans: a

4. Which of the following taxes is not levied by Union Government?
(a) Excise duty              (b) Income tax  
(c) Profession tax         (d) Wealth Tax
Ans: c

5. Which is known as the 'controller of credit'?
(a) NABARD                          (b) State Bank of India
(c) Reserve Bank of India      (d) Indian Bank
Ans: c

6. In which date general budget presents in India?
(a) Last working day of February   (b) April 1
(c) March 31                                    (d) February 28
Ans: a

7. The back bone of Indian Economy:
Ans: Agriculture

8. Monetary policy is regulated by:
(a) Government policy           (b) Central bank
(c) Private entrepreneurs      (d) Money lenders
Ans: a

9. Deflation is:
(a) Deficit budget                            (b) Reduction in taxation
(c) Increase in public expenditure (d) Reverse of inflation
Ans: d

10. Mixed economy approach was adopted through the Industrial Policy statement of:
Ans: 1948

11. Deficit financing is spending:
(a) by borrowing from abroad        (b) in excess of revenue
(c) less than what is needed            (d) by getting foreign aid
Ans: b

12. The official rate of interest charged by the Central bank of a country:
(a) Bank rate                 (b) Debenture
(c) Equity shares           (d) Reverse repo
Ans: a

13. Estimates of National Income in India are prepared by:
(a) Planning Commission                (b) Reserve Bank of India
(c) Central Statistical Organisation (d) Ministry of Finance
Ans: c

14. A Rolling Plan is a plan for:
(a) Five years       (b) Three years   (c) on year to year basis
Ans: c

15. What is Procurement Price for an agricultural commodity?
(a) Subsidy paid by the government over market price
(b) The floor price below which it cannot be sold
(c) Money paid to fanners during drought
(d) The minimum price at which Government is ready to buy
Ans: d

16. Mixed Economy is the co-existence of:
(a) Heavy Industry& Small Industry
(b) Private Sector & Public Sector
(c) Industry and Agriculture
(d) Domestic and Foreign Industries
Ans: b

17. When was the New Liberalized Industrial Policy was announced in India?
Ans: 1991

18. Protectionism in the international trade stands for:
(a) Free trade policy     (b) Semi-restricted trade (c) Restricted trade
Ans: c

19. A multinational is:
(a) A company established with foreign help
(b) A company operating in many countries
(c) An international body to help developing countries
(d) A person who has different types of industries within the countries
Ans: b

20. Repo rate:
(a) The rate at which 1BI sells securities in Commercial Bank
(b) The rate at which RBI buying securities from the
Commercial Banks
(c) Sells securities by the RBI in the open market
(d) Sells securities by the Commercial Banks in the open market
Ans: a

21. Economic growth is usually coupled with:
(a) Deflation        (b) Inflation
(c) Stagflation     (d) Hyperinflation
Ans: b

22. Which one of the following is an indirect tax?
(a) Excise duty    (b) Capital gains tax
(c) Wealth tax     (d) Corporation tax
Ans: a

23. Annual growth rate of National Income was recorded lowest during:
Ans: Fifth plan

24. Compensatory and Contingency Financing Facility is a fund for helping member countries and is maintained by:
(a) ADB      (b) World Bank   (c) European Community     (d) IMF
Ans: d

25. NAFED is connected with:
(a) Animal husbandry            (b) Conservation of fuels
(c) Agricultural marketing    (d) Agricultural implements
Ans: c

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