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February 11, 2017

BPSC UPSC ECONOMICS PRACTICE SET

1. Consider   the   following   statements regarding GDP:
(i)   It is the value added by all the
firms in the economy (ii) It is the final value of goods and
services produced in the economy (iii) It is the sum of final consumption
and investment expenditure and
net of exports and imports (iv) It is the income received by all the
factors of production
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i), (ii) & (iii) only
(c)    (i), (ii) & (iv) only
(d)    All of the above
2.    The demand for goods and services
i.e. GDP in the economy comes
from which of the following
components:
(i)   Households (ii) Private investment (iii) Government (iv) Exports
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (ii) & (iii) only
(c)    (i), (ii) & (iii) only
(d)    All of the above
3.    Which of the following factors may
affect a country's potential GDP
growth:
(i)   Physical capital

(ii) Human Capital
(iii) Labour
(iv) Total factor productivity
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (iv) only
(c)    (i), (ii) & (iii) only
(d)    All of the above
4.    Consider the following statements:
(i)   Base Year prices are used to
calculate the real GDP (ii) Base Year prices are used to
calculate the nominal GDP
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
5.    As per the revised methodology of
CSO, economic growth in India is
measured by GDP at:
(a)    Constant market prices
(b)    Current market prices
(c)    Factor Cost at constant prices
(d)    Factor Cost at market prices
6.    If India is experiencing economic
growth, then which of the following
statements must hold true:
(i)   Real GDP is increasing (ii) Nominal GDP is increasing (iii) Rate of growth of real GDP is increasing
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(iv) Rate of growth of real GDP is decreasing but is positive
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (i) & (iii) only
(d)    (i) & (iv) only
7.    If a country is experiencing
recession, then which of the
following shall be true:
(a)    Decrease in real GDP
(b)    Decrease in nominal GDP
(c)    Decrease in  rate of growth  of GDP
(d)    All of the above
8.    Tax revenue collection in the
economy mainly depends on which
of the following:
(i)   Nominal GDP (ii) Real GDP
Select the correct answer using the code given blow:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
9.    The National Income of a country
(India) is equal to which of the
following:
(a)    Gross National Product (GNP)
(b)    Net National Product at Market Prices


(c)    Net National  Product at Factor Cost
(d)    Income going to the household sector
10.    Consider the following statements:
(i)    Net Factor Income from Abroad
is equivalent to net of exports &
imports (ii)   Old Age Pension is not included
in   the   estimation   of  National
Income (iii)   Retirement Pension is included
in   the   estimation   of  National
Income (iv)  Indirect taxes and subsidies are
included in national income
Select the correct answer using the code given below:
(a)    (ii), (iii) & (iv) only
(b)    (i), (ii) & (iii) only
(c)    (i) only
(d)    All of the above
11.    Which of the following constitutes
investment in the economy:
(i)   Production     of     consumption
goods (ii) Production of capital goods (iii) Production of services (iv) Buying and selling of shares
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (ii) only
(c)    (ii) & (iv) only
(d)    All of the above

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SECTION - I

12.    Consider the following statements
in an economy:
(i)   Decrease       in       consumption
expenditure may lead to increase
in capital accumulation (ii) Increase in savings may lead to
increase in capital accumulation (iii) Increase   in   savings   leads   to
future economic growth (iv) Forgone   present   consumption
leads     to     increased     future
consumption
Select the correct answer using the code given below:
(a)    (ii) only
(b)    (ii) & (iii) only
(c)    (i), (ii) & (iii) only
(d)    All of the above
13.    The decrease in dependency ratio
(ratio of dependent population to
working age population) of a
country may lead to which of the
following situation:
(i)   Increase in savings rate (ii) Decrease in savings rate (iii) Increase in Capital Formation (iv) Decrease in Capital Formation
Select the correct answer using the code given below:
(a)    (i) & (iii) only
(b)    (ii) & (iv) only
(c)    (i) & (iv) only
(d)    (ii) & (iii) only
14.    Consider the following statements
in    an economy:

(i)    Higher tax collection may lead
to higher investment (ii)   Higher tax collection may lead
to higher consumption
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
15.    Consider the following statements
regarding Incremental Capital
Output Ratio (ICOR):
(i)   It shows how efficiently capital is
being used to produce output (ii) It  is  the  extra   unit  of  capital
required      to      produce      one
additional unit of output (iii) It   is  the   extra   unit  of  output
produced   from   one   additional
unit of capital (iv) It is the ratio of change in capital
to change in output
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (i), (ii) & (iv) only
(d)    (i), (iii) & (iv) only
16.    Capital formation in a country will
necessarily lead to which of the
following:
(i)   Increase in ICOR (ii) Decrease in ICOR (iii) Economic growth

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SECTION - I

Select the correct answer using the code given below:
(a)    (i) & (iii) only
(b)    (ii) & (iii) only
(c)    (iii) only
(d)    None of the above
17.    Consider the following statements
in an economy where the efficiency
of capital is decreasing.
(i)   It will lead to less production of
consumption goods (ii) It will lead to less production of
capital goods (iii) It will lead to decrease in labour
productivity (iv) It will lead to increase in savings
Select the correct answer using the code given below:
(a)    (ii) only
(b)    (iii) only
(c)    (i), (ii) & (iii) only
(d)    (i), (ii) & (iv) only
18.    Investment in the economy is
decreasing, which of the following
will increase:
(a)    GDP
(b)    Rate of growth of GDP
(c)    Inflation
(d)    Imports^
19.    A country is going through a phase
of industrialization. Which of the
following statements are correct?
(a)    Capital to labour ratio increases
(b)    Productivity of labour increases


(c)    Total    factor        productivity increases
(d)    All of the above
20.    Match the following indices with
their publishers:
Index
(i)    WPI
(ii)    CPI combined
(iii)    GDP Deflator
(iv)    CPI-Industrial Workers
Published by
1.    Labour Bureau
2.    Office of Economic Advisor
3.    CSO
Select the correct answer using the code given below:
(a)    (i)-2, (ii)- 3, (iii)-3, (iv)-1
(b)    (i)-1, (ii)- 1, (iii)-2, (iv) -1
(c)    (i)-1, (ii)-3, (iii)-3, (iv)-2
(d)    (i)-1, (ii)-2, (iii)-3, (iv)-3
21.    Which of the following statements
are correct about CPI rural, CPI
urban and CPI combined index?
(i)    Price data is collected by NSSO (ii)   Price data is published by CSO (iii)  The base year is 2011-12 (iv)  It is released for all India and for states and UTs separately
Select the correct answer using the code given below:
(a)    (ii), (iii) & (iv) only
(b)    (i), (ii) & (iii) only
(c)    (ii) & (iii) only
(d)    All of the above

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SECTION - I

22.    Consider the statements regarding
the various inflation indices
published in the country:
(i)  Wholesale   Price   Index   (WPI)
does not represent the inflation in
services (ii) Consumer     Price   Index  (CPI)
represents     the     inflation     in
services also (iii) CPI    and   WPI    represent   the
inflation of imported components
also (iv) GDP     deflator    captures     the
inflation    of    the    goods    and
services produced domestically
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i), (ii), (iii) only
(c)    (ii), (iii),(iv) only
(d)    All of the above
23.    The WPI index (base year 2004-05
= 100) for May 2014 & May 2015
are 182 and 192 respectively
Consider the following statements:
(i)  Average  increase  in wholesale
prices from May 14 to May 15 is
10% (ii) Average  increase  in wholesale
prices from base year to May 15
is 92% (iii) Average  increase  in wholesale
prices from May 14 to May 15 is
less than 10% (iv) Average  increase  in  wholesale
prices from May 14 to May 15 is
more than 10%
Select the correct answer using the code given below:

(a)    (i) & (ii) only
(b)    (ii) & (iii) only
(c)    (ii) & (iv) only
(d)    None of the above
24.    Which of the following is a common
measure of degree of 'opneness of
an economy':
(a)    Exports and imports share in world GDP
(b)    Balance of Payments as a percentage of GDP
(c)    Trade balance as a percentage of GDP
(d)    Exports and imports of goods and services as a percentage of GDP
25.    In which of the following cases the
ratio of global trade to global output
(GDP) will decrease:
(i)   Increase in share of agricultural
GDP of countries (ii) Increase in share of Industrial
GDP of countries (iii) Increase  in  share of services
GDP of countries (iv) Countries becoming richer
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (iii) only
(c)    (iii) & (iv) only
(d)    All of the above

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SECTION - II   
26. Which  of   the  following   exchange    then         consider         the         following
rate   system   is   being   followed   in    statements:
India?   
    (i)     Inflation in the country may make
(a)   Fixed    Exchange   Rate   with   gold    its exports less competitive
standard    (ii)   If        the        country        devalues        its
(b)   Fixed but adjustable    currency      in      proportion      to      the
(c)   Managed/ Dirt Float    inflation     then      its     exports      may
(d)   Free Float    remain competitive
27. The Indian exchange rate system    Select the correct answer using the
is      termed     as     "managed     float"    code given below:
because:   
    (a) (i) only
(a)   RBI fixes the exchange rate    (b) (ii) only
(b) RBI fixes the exchange rate and    (c) Both (i) & (ii)
keeps adjusting depending on    (d) Neither (i) nor (ii)
the economic situation   
(c) RBI participates in the market to    30. Consider         the         following
keep the exchange  rate  in  a    statements regarding purchasing
particular range and to prevent    power   parity   (PPP)   exchange
volatility    rates:
(d) None of the above   

    (i)     If  two countries have zero rate of
28. A Country has floating (flexible)    inflation,      their      PPP      exchange
exchange rate system. Consider    rates will be constant
the following statements:    (ii)   The prices of goods will be same
A   ^^                     rap    in       both       the       countries       when
(i)   Rise   in   interest   rate   in   the    converted at PPP exchange rate
country*    may       lead       to   
appreciation of its currency    Select the correct answer using the
(ii) Inflation in the country may lead    code given below:
to depreciation of its currency   
    (a)   (i) only
Select the correct answer using the    (b)   (ii) only
code given below:    (c)   Both (i) & (ii)
    (d)    Neither (i) nor (ii)
(a)   (i) only   
(b)   (ii) only    31. Which              of              the              following
(c)   Both (i) & (ii)    statements is correct?
(d)   Neither (i) nor (ii)   
    (a)   An        overvalued        currency        will
29. If a country has 'Pegged' (fixed    boost exports from the country
but     adjustable)     exchange     rate,   
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SECTION - II   
(b)   An       undervalued      currency      will    (iv) Bond prices depend on the profit/
boost exports from the country    loss of the companies issuing the
(c)   Overvaluation/   undervaluation   of    bonds
currency does not impact exports   
(d)   None of the above    Select the correct answer using the
    code given below:
32. The   export   competitiveness   of   a   
country    can    be    best    measured    (a)   (i) only
through     which    of     the    following    (b) (i) & (iv) only
exchange rates:    (c) (i) & (iii) only
    (d) (i),(iii) & (iv) only
(a)   Nominal Exchange Rate   
(b)   Real Exchange Rate    35. Which of the following investors/
(c)   Nominal          Effective          Exchange    agencies         can         purchase
Rate    government of India securities?
(d) Real Effective Exchange Rate   
    (i)   Reserve Bank of India
33. Consider         the         following    (ii) Portfolio Investors
statements regarding securities:    (iii) Financial Institutions
    (iv) Individuals
(i)    Bonds are debt securities   
(ii)   All debt securities are bonds    Select the correct answer using the
(iii)  Shares/Stocks are    code given below:
securities   
(iv)  Savings and Fixed deposits are    (a)   (i) only
securities    (b)   (i) & (iii) only
Select the correct answer using the    (c)   (iii) only
code given below:    (d)   All of the above
(a)  (i) & (iii) only    36. Consider                    the                    following
(b) (ii) & (iii) only    statements:
(c) (iii) & (iv) only   
(d) (i) & (iv) only    (i)       Currencies     and     coins     are     fiat
    money
34. Consider         the         following    (ii)      Currencies  do  not  have  intrinsic
statements regarding bonds:    value but coins have
    (iii)     Currencies   and   coins   are   legal
(i)     Bond       price       depends       on       the    tenders
market interest rate    (iv)    Cheques are legal tenders
(ii)   Bond          price          increases          with   
increase in market interest rate    Select the correct answer using the
(iii) Bond         price         decreases         with    code given below:
increase in market interest rate   
    (a)     (i) only
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SECTION - II

(b)    (i) & (iii) only
(c)    (iii) & (iv) only
(d)    (ii), (iii) & (iv) only
37.    Consider    the    following
statements regarding Monetary
Base in India:
(i)   It is the total liability of RBI (ii) It    is    the    total    liability    of Government of India
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
38.    Which of the following are part of
Monetary Base of an economy:
(i)   Currency notes and coins with
the public (ii) Vault cash of commercial banks (iii) Deposits  of  commercial   banks
with RBI (iv) Deposits of Government of India
with RBI
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (iii) & (iv) only
(d)    All of the above
39.    Reserve money of the
commercial banks includes
which of the following:
(i)   Deposits of Public

(ii) Government securities  held  by
banks (iii) Cash   held   by   banks   in   their
vaults (iv) Money deposited with RBI
Select the correct answer using the code given below:
(a)    (ii) & (iii) only
(b)    (ii), (iii) & (iv) only
(c)    (iv) only
(d)    All of the above
40.    Consider    the > following
statements regarding Cash
Reserve Ratio (CRR) kept with
RBI by commercial banks:
(i)It ensures safety to the people's deposits in banks
(ii) It ensures solvency of banks
(iii) It increases the cost of funds for the banks
(iv) Banks earn interest on CRR
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (i), (ii) & (iii) only
(d)    All of the above
41.    The Scheduled    Commercial
Banks (SCB) are    required to
maintain CRR with    RBI as per
the regulation:
(a)    Reserve Bank of India Act 1934
(b)    The Banking Regulation Act 1949

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SECTION - II

(c)    Securities Contract (Regulation) 1956
(d)    None of the above
42. Which of the following is not part of money supply in the economy?
(i)   Money lying with the government (ii) Deposits  of  commercial   banks
with other commercial banks (iii) Money   lying   with   the   Central
bank (iv) Deposits       of       pubic      with
commercial banks
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    (i) & (ii) only
(d)    (i), (ii) & (iii) only
43.    Money can be created in the
economy in which of the following
ways:
(i)    Fractional reserve banking (ii)   Full reserve banking
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
44.    Consider the following statements
regarding Money Multiplier:

(i)   It increases with increase in
reserve     requirements     of
banks (ii) It decreases with increase in
reserve     requirements     of
banks (iii) It  increases  with   Monetary
Base (iv) It decreases with  Monetary
Base
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (ii) only
(c)    (ii) & (iii) only
(d)    (ii) & (iv) only
45.    How many times RBI reviews the
Monetary Policy in a Financial
Year?
(a)    Quarterly
(b)    Quarterly and Mid Quarterly
(c)    Bimonthly
(d)    Six Monthly
46.    As per the new Monetary Policy
Framework signed between
Govt. of India and RBI, the
primary objective/s of monetary
policy is:
(a)    Price Stability
(b)    Economic Growth
(c)    Financial Stability
(d)    All of the above
47.    RBI is using which of the
following inflation indices as
anchors for “Inflation Targeting”:
(a) WPI
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SECTION - II

(b)    GDP Deflator
(c)    CPI combined
(d)    CPI-Industrial Workers
48.    Consider    the    following
statements regarding the new
'Monetary Policy Framework'
signed between Govt. of India
and Reserve Bank of India:
(i)  The      primary      objective      of
Monetary Policy is price stability (ii) There   is   a  flexible   target  for
inflation    that    RBI    needs    to
achieve (iii) Monetary  Policy  Framework  is
operated by RBI (iv) If RBI fails to achieve the target,
it needs to submit report to the
Govt. of India stating reasons of
failure
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (iii) only
(c)    (i), (ii) & (iv) only
(d)    All of the above
49.    As per the new Monetary Policy
Framework, who will determine
the inflation target?
(a)    Government of India (GoI)
(b)    Reserve Bank of India (RBI)
(c)    GoI in consultation with RBI
(d)    Monetary Policy Committee
50.    Consider    the    following
statements regarding the
"Monetary Policy Committee"
(MPC) to be constituted by Govt.
of India

(i)   MPC will decide the Inflation
Target (ii) MPC will  decide the  Repo
Rate (iii) MPC will have 6 members (iv) RBI   governor  will   have   a
casting vote
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i) & (iii) only
(c)    (ii), & (iii) only
(d)    (ii), (iii) & (iv) only
51.    Which of the following
statements are true regarding the
monetary policy followed by RBI
in the past one year.
(i)  Accommodative (ii) Expansionary (iii) Easy monetary policy (iv) Contractionary
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (ii) & (iii) only
(c)    (i), (ii) & (iii) only
(d)    All of the above
52.    Consider    the    following
statements:
(i)   Open   Market   Operation   is   a
monetary policy tool (ii) Open   Market   Operations   take
place in secondary market (iii) Sterilization      is      a      Market
Stabilization Scheme
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SECTION - II

(iv) Sterilization is a day to day phenomenon
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i) & (iv) only
(c)    (ii) & (iv) only
(d)    (i), (ii), (iii) only
53. Consider the following statements regarding Open Market Operations:
(i)   It is conducted by Commercial
Banks (ii) It is conducted by RBI (iii) It is about debt securities (iv) It is about equity securities
Select the correct answer using the code given below:
(a)    (ii) only
(b)    (ii) & (iii) only
(c)    (ii), (iii) & (iv) only |
(d)    All of the above
54. Consider    the    following
statements     regarding     'Open Market Operations'
(i) It results in an increase or decrease in Monetary Base
(ii) It results in an increase or decrease of Money Supply
(iii) It is managed by RBI but securities are bought and sold by commercial banks & not RBI
(iv) Securities are bought and sold by RBI
Select the correct answer using the code given below:

(a) (ii) & (iii) only (b) (ii) & (iv) only (c) (i), (ii) & (iv) only (d) All of the above
55. Which of the following rates is used by RBI as the penal rate in case banks are not meeting their reserve requirements?
(a)    Bank Rate
(b)    Discount Rate
(c)    Marginal Standing Facility Rate
(d)    Weighted Average of Retail and Wholesale inflation
56.    Which of the following agencies
conducts 'inflation expectation
survey' of households in India?
(a)    Central Statistical Organization
(b)    National Sample Survey Organization
(c)    Reserve Bank of India
(d)    Ministry of Finance
57.    RBI is keeping the policy rate at
a higher level for quite some
time. Which of the following
conditions have led to such
behavior?
(i)   Inflation in the economy is high (ii) Inflation     expectation     in    the economy is high
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
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58.    Foreign Direct Investment (FDI)
in India can happen by which of
the following ways:
(i)    Subsidiary (ii)   Joint Venture (iii)  Acquisition of shares (iv)  Purchase       of       government securities
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (ii) & (iii) only
(c)    (i), (ii) & (iii) only
(d)    All of the above
59.    Foreign Direct Investment
through government approval
route requires approval of which
of the following government
agency?
(a)    Department of Industrial Policy and Promotion (DIPP)
(b)    Foreign Investment and Promotion Board (FIPB)
(c)    Securities and Exchange Board of India (SEBI)
(d)    Reserve Bank of India (RBI)
60. Consider    the    following
statements    regarding    Foreign Direct Investment (FDI):
(i)   FDI    investment   may   happen
through secondary market (ii) FDI    investment       is   possible
through      both      primary      &
secondary market (iii) FDI  investment is about equity
securities

(iv) FDI investment is about debt securities
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) & (iii) only
(c)    (iii) only
(d)    (ii) & (iv) only
61.    Consider    the    following
statements regarding Foreign
Portfolio Investors (FPI/FII):
(i) FPI is mainly into primary market (ii)FPI    investment    may    happen
through primary market (iii) FPI investment happens only in
equity shares (iv) FPI investment happens only in debt securities
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    (ii) & (iii) only
(d)    None of the above
62.    Consider    the    following
statements:
(i)   Foreign Portfolio investments are
more volatile than FDI (ii) FDI investors can easily sell their
holdings and quit the market (iii) Foreign   Portfolio  investment  is
sector specific (iv) FDI investment in general target
the capital market

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SECTION - II   
Select the correct answer using the   
code given below:    (a)     (iii) only
    (b)   (iii) & (iv) only
(a)   (i) only    (c)   (ii) & (iii) only
(b)   (i) & (iii) only    (d)   All of the above
(c)   (iii) & (iv) only   
(d)   (iv) only    65. The     people     of     a     country     are
    willing  to  deposit/  save money  in
63. The     Real      Rate     of     Interest      is    the    commercial    banks.    This
equal     to     the     Nominal     Interest    behavior in the economy may be
Rate     minus     inflation.     Consider    caused due to:
the following statements:   
    (a) Higher inflation rate
(i)     Real       Interest       Rate       must       be    (b) Higher nominal interest rate
positive      to      encourage      savings    (c) Higher real interest rate
and reduce consumption    (d) Higher money supply
(ii) Real    Interest   Rate   must   be   
negative to  encourage savings    66. If an  economy  is  in  “Liquidity
and reduce consumption    Trap”, then which of the following
(iii) Nominal   interest   rate   in   the    statements shall be true:
market may be negative   
(iv) Inflation rate in the market may    (i)  The interest rate in the market
be negative    will be very low/zero
    (ii)   People   and   businesses   both   will
Select the correct answer using the    hold   on   to   their   cash   and    don‟t
code given below:    spend
    (iii) People will be willing to spend
(a) (i) only    (iv) Cash holdings of banks will rise
(b) (iii) only^   
(c) (i) & (iii) only    Select the correct answer using the
(d) (i) & (iv) only    code given below:
64. Which  of the following  factors    (a)   (i) only
may lead to increase in savings    (b)   (i) & (ii) only
in the economy?    (c)   (i), (ii) & (iv) only
    (d)   (i) & (iv) only
(i)     Positive real interest rate   
(ii)   Low inflation rate    67. Consider                    the                    following
(iii) Rise in per capita income    statements:
(iv) Growth                          of                         financial   
intermediaries    (i)        Inflation benefits creditors
    (ii)      Inflation benefits debtors
Select the correct answer using the    (iii)     Inflation benefits bondholders
code given below:    (iv)    Inflation benefits depositors
    13 | P a g e

SECTION - II

Select the correct answer using the code given below:
(a)    (i) & (iii) only
(b)    (ii) only
(c)    (iii) only
(d)    (i), (iii) & (iv) only
68.    Consider    the    following
statements regarding Base Rate:
(i) It is the minimum rate below which banks cannot lend
(ii) It is decided by the RBI
(iii) It is decided by the respective banks
(iv) It is same for all the banks
Select the correct answer using the code given below:
(a)    (i), (ii) & (iv) only
(b)    (i) & (iii) only
(c)    (i), (iii) & (iv) only
(d)    (ii) & (iv) only
69.    The decrease in Cash Reserve
Ratio (CRR) requirement by RBI
will impact the Base Rate of
banks in which of the following
manner:
(a)    It may lead to increase in Base Rate
(b)    It may lead to decrease in Base Rate
(c)    It may lead to increase or decrease in Base Rate
(d)    It will have no impact on Base Rate
70.    As per the new methodology, the
lending rate is calculated by the
banks based on:


(a)    Average Cost of Funds
(b)    Marginal Cost of Funds
(c)    Repo Rate
(d)    Inflation Rate
71.    Which of the following
statements are true regarding the
Marginal Cost of Funds based
Lending Rate (MCLR):
(i)  All the new loans w.e.f April 2016
must be priced with reference to
MCLR (ii) Banks will do lending at or above
MCLR (iii) Banks  shall  review the  MCLR
every month (iv) MCLR    will     help     in     better
transmission of policy rate into
lending rate
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii)
(c)    (ii), (iii) & (iv)
(d)    All of the above
72.    In the past, the commercial
banks have not reduced their
base rate in proportion to the
reductions made by RBI in the
policy rate. The possible reasons
could be:
(i)   High rates on government's small
savings scheme (ii) Using the average cost of funds
principle for calculation of base
rate

14 | P a g e

SECTION - II   
Select the correct answer using the    (b)   (ii) only
code given below:    (c)   (i) & (ii) only
    (d)   (i) & (iii) only
(a) (i) only   
(b) (ii) only    75. Consider         the         following         two
(c) Both (i) & (ii)    statements:
(d) Neither (i) nor (ii)   
    (i)     Headline inflation measures price
73. "Government             offers             above    inflation arising due to all types of
market  interest  rate  on  the  small    commodities in the economy
savings   schemes   like   PPF   etc.".    (ii) Core    inflation    measures    the
It leads to:    headline      inflation      excluding
    volatile components i.e. food and
(i)     Hindrance      in      monetary      policy    fuel items
transmission   
(ii) Supports       monetary       policy    Select the correct answer using the
transmission    code given below:
(iii) Mostly benefits the rich people   
(iv) Mostly benefits the poor people    (a) (i) only
    (b) (ii) only
Select the correct answer using the .    (c) Both (i) & (ii)
code given below: (a) (i) & (iii) only    (d) Neither (i) nor (ii)

    76. If       a       country       is       experiencing
(b) (i) & (iv) only    inflation            then            what            must
(c) (ii) & (iii) only    decrease:
(d) (ii) & (iv) only   
    (a)  Wage level
74. Consider         the         following    (b)   The output of goods and services
statements:    (c)   The amount  of money needed  to
    purchase      a      given      quantity      of
(i)   Increase in Repo Rate leads to    goods and services
increase in Bank Rate    (d)   Purchasing Power
(ii) Increase in Repo Rate leads to   
increase in Reverse Repo Rate    77. The   rise   in   prices   of   goods   and
(iii) Banks are bound to pass on the    services   in   an   economy   may   be
Repo        Rate        cut        benefits        to    caused due to:
customers  by  reducing   the   Base   
Rate    (i)     Increase in money supply
    (ii)   Increase                 in                 government
Select the correct answer using the    expenditure
code given below:    (iii) RBI          purchasing          government
    securities from the public
(a)   (i) only   
    15 | P a g e

SECTION - II

(iv) Implementation of the 7th Pay Commission
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i), (ii) & (iii) only
(c)    (i), (ii), & (iv) only
(d)    All of the above
78.    To reduce the rate of inflation,
the Government should:
(a)    Increase public expenditure
(b)    Encourage    consumer expenditure
(c)    Increase Income tax
(d)    Reduce Interest Rate
79.    If a country's economy is
experiencing positive real growth
rate, then which of the
statements may be true:
(i)   Money needs to be pumped in
the    economy    to    keep    the
deflation away (ii) Money needs to be sucked from
the economy to keep the inflation
away
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii) (d) Neither (i) nor (ii)
80. The amount of Money Supply in the economy affects the following macroeconomic variables:


(a)    Rate of Interest
(b)    Price level
(c)    Output
(d)    All of the above
81. Which of the following scenarios can support sustainable economic growth:
(i)   Deflation
(ii) Low and moderate inflation
(iii) Galloping inflation
(iv) Hyperinflation
Select the correct answer using the code given below:
(a)    (ii) only
(b)    (i) & (ii) only
(c)    (ii) & (iii) only
(d)    All of the above
82.    Consider    the    following
statements:
(i)   High    output    leads    to    high
unemployment (ii) High   unemployment   leads   to
high inflation
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
83.    'Stagflation' is a phenomenon
which can occur if the economy
is experiencing the following
situations:
(i)   Demand Pull inflation
16 | P a g e

SECTION - II   
(ii)   Supply shock inflation    86. Consider                    the                    following
    statements                regarding                an
Select the correct answer using the    economy facing deflation:
code given below:   
    (i)    Companies                    defer                    their
(a)   (i) only    investments
(b)   (ii) only    (ii)  People defer their expenditures
(c)   Both (i) & (ii)    (iii) Demand decreases
(d)   Neither (i) nor (ii)    (iv) Unemployment increases
84. Consider                    the                    following    Select the correct answer using the
statements:    code given below:
(i)     Disinflation    is    declining     rate    of    (a) (i) & (ii) only
inflation   but   the   rate   of   inflation    (b) (iii) only
remains positive    (c) (iii) & (iv) only
(ii) Deflation is general decrease in    (d) All of the above
price level and the inflation rate   
is negative    87. Which of the following constitute
    Capital  Account  in  Balance  of
Select the correct answer using the .    Payment (BoP)?
code given below:   
 (a) (i) only    (i) Global      Depository      Receipts

    (GDRs)
(b) (ii) only    (ii)   Trade Credit
(c) Both (i) & (ii)    (iii) Government                                    securities
(d) Neither (i) nor (ii)    purchased by foreign Investors
A   ^^                      fe    (iv) Securities   purchased   by   foreign
85. If the economy is experiencing    portfolio investors
disinflation,   then  which   of  the   
following    statements    will    be    Select the correct answer using the
correct:    code given below:
(i)   Nominal GDP > Real GDP    (a)     (i) & (ii) only
(ii) Real GDP > Nominal GDP    (b)   (iii) & (iv) only
    (c)   All of the above
Select the correct answer using the    (d)   None of the above
code given below:   
    88. Which              of              the              following
(a)   (i) only    statements  will  be  considered  as
(b)   (ii) only    part     of     „Transfer     Payments‟     in
(c)   None of the above    balance of payment?
(d)   Can't be answered   
    17 | P a g e

SECTION - II

(i)   Money sent by an  NRI  to his
friend in India (ii) Money    sent    by    an    Indian
employee who has gone abroad
temporarily
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
89.    The Current Account Deficit in
Balance of Payment can be
financed through:
(i)   Net capital inflow (ii) Foreign      exchange      reserve transaction
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    None of the above
90.    The visit of foreigners in India to
see the various places/events in
the country, amounts to which of
the following in terms of
economy:
(a)    Production
(b)    Consumption
(c)    Import
(d)    Export
91.  Consider the following statements:

(i) Capital Account convertibility is related to the government's Capital Budget
(ii) India has full capital account convertibility
(iii) Current Account convertibility is related to governments current year domestic transactions
(iv) India has partial current account convertibility
Select the correct answer using the code given below:
(a)    (i) & (iii) only
(b)    (i), (ii) & (iii) only
(c)    (i), (iii) & (iv) only
(d)    None of the above
92.    Which of the following functions
are part of the Reserve Bank of
India (RBI) acting as Banker to
Banks.
(i)   Enabling banks to maintain their
accounts with RBI for statutory
reserve requirements (ii) Enabling settlement of interbank
transfer of funds (iii) RBI   provides  short term  loans
and advances to banks (iv) Acting as lender of last resort
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (i), (ii) & (iii) only
(d)    All of the above
93.    RBI acts as a 'lender of last
resort' (extends loans to banks
facing       temporary       liquidity
18 | P a g e

SECTION - II

problems) to ensure the following in the economy:
(i)  To prevent possible failure of the
banks (ii) To  protect the  interest  of the
depositors of the banks (iii) To ensure financial stability in the
economy
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (i) & (iii) only
(d)    All of the above
94. Which of the following functions are part of the Reserve Bank of India (RBI) acting as Banker to Central Government.
(i) RBI maintains the account for the various central government funds like Consolidated Fund of India, Contingency Fund and Public Account of India
(ii) RBI acts as advisor to the government on monetary and banking related matters
(iii) RBI provides Ways and Means Advances to the government
(iv) RBI floats loans and manages them on behalf of the govern ment
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (iii) & (iii) only
(d)    All of the above

95.    Consider    the    following
statements regarding RBI:
(i) RBI regulates interest rates on savings & Time deposits in commercial banks
(ii) RBI regulates "Money Market"
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both of the above
(d)    None of the above
96.    The Reserve Bank of India
regulates the commercial banks
in the following matters:
(i)   Advances to priority sectors (ii)  Maintenance of reserves (iii)  Branch Expansion (iv)  Provisioning against NPAs
Select the correct answer using the code given below:
(a)    (ii) & (iii) only
(b)    (i), (ii) & (iii) only
(c)    (ii), (iii) & (iv) only
(d)    All of the above
97.    Mergers and Acquisitions of
commercial banks requires
approval of which of the following
agency/ies ?
(i)   Reserve Bank of India (RBI) (ii) Competition     Commission     of India (CCI)

19 | P a g e

    SECTION - II   
Select the correct answer using    the   
code given below:        100.Consider                  the                  following statements                                         regarding
(a)   (i) only        Securitization                                                    and
(b)   (ii) only        Reconstruction                      of  Financial
(c)   Both (i) & (ii)        Assets        and        Enforcement        of
(d)   Neither (i) nor (ii)        Security        Interest        (SARFAESI) Act 2002:
98.   Which       of       the       following    are   
characteristic   situation   for    'Bank    (i)   It allows only RBI to classify any
Run'?        asset as non performing (ii) It   allows   RBI   or   any   other
(i)     Customers               withdraw    their    authority or body as applicable
deposits   fearing    that    banks    will    to  classify any asset as  non
run out of reserves        performing
(ii)   Banks are in risk of default        (iii) It allows the banks and financial
(iii) Central Bank acts as lender of    institutions to sell the security
last resort        once it becomes non performing (iv) It allows the banks and financial
Select the correct answer using    the    institutions to sell the security in
code given below:        case of secured and unsecured debt
(a)    (i) only
(b)    (i) & (ii) only        Select the correct answer using the
(c) (iii) only        code given below:
(d) All of the above       
        (a)   (i) & (iv) only
99. Which of the following  sectors    (b)   (ii) & (iv) only
have recently/ newly been added    (c)   (ii) & (iii) only
in the definition of “Priority Sector    (d)   (ii), (iii) & (iv) only
Lending” by RBI?        101.NABARD   provides   refinance   to
(i)   Medium Enterprises        which    of    the    following    types    of
(ii) Social Infrastructure        financial institutions:
(iii) Renewable Energy       
(iv) Rural Infrastructure        (i)     Commercial Banks (ii)   Regional Rural Banks
Select the correct answer using    the    (iii) State Cooperative  Banks  & Land
code given below:        Development Banks (iv) Non                   Banking                   Financial
(a)   (i) & (ii) only        Companies
(b)   (ii) & (iii) only       
(c)   (i), (ii) & (iii) only        Select the correct answer using the
(d)   All of the above only        code given below:
20 | P a g e

SECTION - II

(a)    (ii) only
(b)    (ii) & (iii) only
(c)    (i), (ii) & (iii) only
(d)    All of the above
102.    Which of the following
institutions offers direct credit ?
(i)   EXIM Bank
(ii) National Housing Bank (NHB)
(iii) Small    Industries   Development
Bank of India (SIDBI) (iv) NABARD
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i) & (iii) only
(c)    (i), (ii) & (iii) only
(d)    None of the above
103.    The central government is
recapitalizing the Public Sector
Banks to achieve the following:
(i)  To meet Basel III norms
(ii) To      increase     the      capital
adequacy ratio (iii) To improve the bank's balance
sheet and prevent them from
going bankrupt (iv) To increase the money supply
in the system
Select the correct answer using the code given below:
(a)    (i) & (ii)
(b)    (i), (ii) & (iii) only
(c)    (i) & (iii) only
(d)    (iii) & (iv) only

104.    Reduction in Statutory Liquidity
Ratio (SLR) will help achieve the
banks which of the following
prudential norms:
(i)   Capital Adequacy Ratio (ii) Provisioning against NPAs
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
105.    Consider the    following
statements regarding "Sovereign
Gold Bonds" scheme launched
recently:
(i) These are government securities denominated in grams of gold
(ii) Issued by RBI on behalf of Govt. of India
(iii) Investors will receive fixed interest rate
(iv) If the market price of gold declines, investors will be protected against capital loss
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (ii) & (iii) only
(c)    (i), (ii) & (iii) only
(d)    All of the above
106.Which of the following are components of India's Foreign Exchange Reserves?
(i)   SDR: Special Drawing Rights
21 | P a g e

SECTION - II   
(ii)   FCA: Foreign Currency Assets    (iii) Currencies       which       maintain       a
(iii) RTP: Reserve Tranche Position    stable       purchasing       power       are
(iv) Gold    generally accepted
    (iv) Freely  convertible  currencies  are
Select the correct answer using the    generally accepted
code given below:   
    Select the correct answer using the
(a)   (ii) only    code given below:
(b)   (ii) & (iv) only   
(c)   (i), (ii) & (iv) only    (a) (i) only
(d)   All of the above    (b) (ii) & (iv) only
    (c) (iii) & (iv) only
107.Consider                  the                  following    (d) (ii), (iii) & (iv) only
statements        regarding        Special   
Drawing Rights (SDR) of IMF.   
(i)   It is a currency   
(ii) It is a unit of account of the IMF   
(iii) It acts as an international reserve   
asset   
(iv) IMF    allocates    SDRs    to    its   
member countries in proportion   
of their quota at the IMF   
Select the correct answer using the   
code given below:   
(a) (ii) only   
(b) (ii), (iii) & (iv) only   
(c) (i), (ii) & (iii) only   
(d) All of the above   
108. Consider        the      , following   
statements       regarding       the   
transactions   happening   at   the   
international level for trade and   
financial flows.   
(i)     There            is            an            international   
authority   with   the   power   to   force   
the use of a particular currency   
(ii)   There   is   a   basket   of   currencies   
which   can  only  be   used   to   settle   
international transactions   
    22 | P a g e

SECTION - III

109.    Which of the following figures are
presented as part of the Budget
presentation in Parliament?
(i)   Budgeted        receipts        and
expenses for the next Financial
Year (FY)
(ii) Budgeted    receipts        and
expenses for the current FY (iii) Revised receipts and expenses
for the current FY (iv) Actual   receipts  and  expenses
for the last FY
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (i), (ii), & (iii) only
(d)    All of the above
110.    Consider    the    following
statements regarding presentation
of Budget in the Parliament:
(i) Finance Bill is introduced on the very first day when the Finance Minister presents Budget in the Parliament
(ii) Appropriation Bill is introduced after the voting on demand for grants is over
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
111.    In case the Union Budget is not
approved by 1st April, then which of

the    following    options    is    most appropriate:
(a)    The Constitution empowers Lok Sabha to grant a “Vote-on-Account”
(b)    The government can still withdraw money from the “Consolidated Fund of India”
(c)    An Interim Budget needs to be passed
(d)    The government can take internal and/or external debt to meet its fund requirement
112.    Consider the following statements
regarding 'Contingency Fund of
India'
(i)  The fund is at the disposal of
the president of India (ii) The fund is at the disposal of
the Prime Minister of India (iii) The     funds      spent     shall
ultimately be approved by the
parliament (iv) The funds spent are recouped
from the Consolidated Fund of
India
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) & (iv) only
(c)    (i), (iii) & (iv)
(d)    (i) & (iv)
113.    Consider the following statements
regarding the Budget prepared by
Government of India:

23 | P a g e

SECTION - III

(i) It is a constitutional obligation that the budget shall be divided into i.e. receipts and expenditure
(ii) It is a constitutional obligation that the budget shall be divided into revenue budget and capital budget
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
114.    With respect to the Budget of the
Central Government, Capital
Receipts are those receipts which
either:
(i)   Create    a    liability    for    the
government (ii) Causes reduction in assets of
the government
Select the correct answer using the code given below:
(a)    (i) only*
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Either (i) or (ii)
115.    The Grants-in-aid given by the
Central Government to the State
Governments and local bodies for
creation of capital assets are
classified in the Union budget
under?
(a)    Revenue expenditure
(b)    Capital Expenditure


(c)    Both Revenue and Capital expenditure
(d)    None of the above
116.    Which of the following are Non
Tax Receipts of the Central
Government?
(i)   Issue of Passport and Visa (ii) Registration of Companies (iii) Royalty from on shore oilfields (iv) Royalty from offshore oilfields
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i), (ii) & (iii) only
(c)    (i), (ii) & (iv) only
(d)    All of the above
117.    Which of the following are Non-
debt capital receipts of Govt. of
India
(i)   Disinvestment (ii) Recovery of loans (iii) Public Account receipts (iv) Treasury Bills
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (iii) & (iv) only
(d)    (i), (ii) & (iii) only
118.    “Tax Buoyancy” in the economy is
defined as:
(i) Ratio of percentage change in tax revenue to percentage change in GDP
24 | P a g e

SECTION - III

(ii) Ratio of change in tax revenue to
change in GDP (iii) Percentage    increase    in    tax
revenues    as    measured   from
previous year (iv) Incremental     change     in     tax
revenues   required   to   increase
the GDP by one percent
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (iii) only
(d)    (ii) & (iv) only
119. The money accruing from the sale of “National Savings Certificates-goes to which account of the Government of India?
(a)    Consolidated Fund of India
(b)    Prime  Minister  National  Relief Fund
(c)    Public Account of India
(d)    Contingency Fund of India
120. Which  of the following  receipts goes to Public Account of India:
(i)   Post Office Savings Account (ii) Kisan Vikas Patra (iii) Sukanya Samriddhi Account (iv) Public Provident Fund
Select the correct answer using the code given below:
(a)    (i) & (iv) only
(b)    (ii) & (iii) only
(c)    (ii), (iii) & (iv)S
(d)    All of the above

121.    The Public Debt of Government of
India includes which of the
following:
(i)  Treasury Bills
(ii) External Commercial  Borrowing
(ECB) (iii) NRI deposits (iv) Foreign    Direct   Investment   in
India (FDI) 1
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (iii) only
(c)    (i), (ii) & (iii) only
(d)    (ii) & (iv) only
122.    Which of the following are part of
India's External Debt?
(i)   External Commercial Borrowing
(ECB) (ii) NRI Deposits (iii) Investments made by Portfolio
Investors in debt securities (iv) Portfolio   Investors   purchasing
government securities
Select the correct answer using the code given below:
(a)    (i) only
(b)    (iv) only
(c)    (i), (iii) & (iv) only
(d)    All of the above
123.    Fiscal Deficit is equal to:
(i)  Total   expenditure   minus   total
receipts (ii) Total   expenditure   minus   total
receipts excluding borrowing
25 | P a g e

SECTION - III

(iii) Revenue deficit plus capital expenditure minus non debt creating capital receipts
(iv) Total borrowing
Select the correct answer using the code given below:
(a)    (i) & (iv) only
(b)    (ii) & (iii) only
(c)    (ii), (iii) & (iv) only
(d)    All of the above
124.    Fiscal Deficit of the Government
of India is equal to which of the
following:
(a)    Debt creating capital receipts
(b)    Non Debt capital receipts
(c)    Debt and non debt capital receipts
(d)    Capital receipts less of revenue receipts
125.    The fundamental task of
Government's budget policy is to
preserve fiscal sustainability. The
various parameters which signify
fiscal sustainability are:
(i)   Fiscal Deficit (ii) Revenue Deficit (iii) Primary Deficit (iv) Debt-to-GDP ratio
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i), (ii) & (iii) only
(c)    (i) & (iv) only
(d)    All of the above

126.    Consider the following statements
regarding the government's fiscal
deficit:
(i)   It may be inflationary (ii) It may not be inflationary (iii) It raises aggregate demand
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    (i) & (iii) only
(d)    All of the above
127.    Consider the following statements
regarding FRBM Act 2003
(i)   It  is  applicable to Centre  and
State both
(ii) It    prohibits    government
borrowing from RBI except in few
cases (iii) It prohibits RBI from subscribing
to   primary   issues   of   central
government securities (iv) It ensures transparency in fiscal
operations
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) & (iii) only
(c)    (ii), (iii) & (iv) only
(d)    All of the above
128.    When the central government is
not able to meet the targets as
mentioned in Fiscal Responsibility
and Budget Management (FRBM)
Act 2003, then it introduces
amendments   in   the  Act  through
26 | P a g e

SECTION - III

which of the following bills in the parliament:
(a)    FRBM Amendment Bill
(b)    Appropriation Bill
(c)    Finance Bill
(d)    No such amendment is required
129.    Which of the following statement
is not true regarding "Outcome
Budget":
(a)    It is not presented in parliament
(b)    It      measures      development outcomes of govt. programmes
(c)    It helps in better service delivery
(d)    It        reduces        unnecessary expenses
130.    Consider the following statements
regarding 'Fiscal Consolidation'
policy:
(i)   It is an effort by the government
to bring down fiscal deficit (ii) It is an effort to reduce public
debt (iii) It is an effort to reduce current
account deficit (iv) It is an effort to raise revenues
and     bring     down     wasteful
expenses
Select the correct answer using the code given below:
(a)    (i), (ii) & (iii) only
(b)    (i), (ii) & (iv) only
(c)    (iv) only
(d)    All of the above
131.    Consider the following statements
regarding Central Sales Tax (CST)
(i)   It is an origin based tax

(ii) It is levied by the Centre
(iii) It is administered by the Centre
(iv) It is administered by the State
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i) & (iv) only
(c)    (i), (ii) & (iv) only
(d)    (ii) & (iv) only
132.    Consider the following statements
regarding Value Added Tax (VAT):
(i)  VAT is consumption based tax (ii) VAT is destination based tax
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
133.    Consider the    following
statements regarding the present
taxation system in India
(i)    Service   Tax   is   imposed   by
Centre only (ii)   VAT is imposed by states/UTs
only
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)

27 | P a g e

SECTION - III   
134.    Consider the following statements    (i)     Land Revenue
regarding     Minimum     Alternate     Tax    (ii)   Property Tax
(MAT) in India:    (iii) Stamp Duty
    (iv) Service Tax
(i)     Applicable      to      companies       and   
individuals both    Select   the   correct   answer   using   the
(ii)   MAT     will     be     included     in     GST    code given below:
once implemented   
(iii) The    companies    are    required    to    (a) (i) only
pay     both     MAT     and     Corporate    (b) (i) & (ii) only
Income Tax    (c) (i), (ii) & (iii) only
(iv) It   was   introduced   as   companies,    (d) (iii) & (iv) only
in      spite     of      having      high     book   
profit,   were   able   to   reduce   their    137. Match the following type of taxes
taxable income    and examples:
Select the correct answer using the    (i)   Progressive Tax
code given below:    (ii) Proportional Tax
    (iii) Regressive Tax
(a) (i) & (ii) only   
(b) (i) & (iii) only    1.   Personal Income Tax
(c) (iv) only    2.   Goods and Services Tax
(d) (i), (ii) & (iii) only    3.   Corporate Income Tax
135. A   product   is   manufactured   in    Select   the   correct   answer   using   the
State A and sold in State B. Which    code given below:
of the following taxes it will attract?   
A   ^^                     fe    (a)   (i) - 1, (ii) - 2, (iii) - 3
(i)   VAT    (b) (i) - 1, (ii) - 3, (iii) - 2
(ii) Central Sales Tax (CST)    (c) (i) - 2, (ii) - 1, (iii) - 3
(iii) Excise Duty    (d)   (i) - 2, (ii) - 3, (iii) - 1
(iv) Customs Duty   
    138.    Which   of   the   following   taxes   are
Select the correct answer using the    regressive in nature?
code given below:   
    (i)     Income Tax
(a)   (i) only    (ii)   Sales Tax
(b)   (i) & (iv) only    (iii) Goods & Services Tax (GST)
(c)   (ii) & (iii) only    (iv) Value Added Tax (VAT)
(d)   (i), (ii) & (iii) only   
    Select   the   correct   answer   using   the
136.    Which   of   the   following   taxes   are    code given below:
direct in nature:   
    (a)   (i) only
    28 | P a g e

SECTION - III

(b)    (ii) only
(c)    (i) & (ii) only
(d)    (ii), (iii) & (iv) only
139.    Consider the following statements
regarding Goods and Services Tax
(GST):
(i)   GST is a value added tax
(ii) GST is a multipoint destination based tax
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
140.    The implementation of Goods and
Services Tax (GST) requires
Constitutional amendment for the
following reasons:
(i)   To allow central government to
impose taxes on inter-state sale
of goods (ii) To allow central government to
impose taxes  on  sale  of  intra
state goods (iii) To allow state governments to
impose taxes on services (iv) To allow state governments to
impose taxes on sale intra state
goods
Select the correct answer using the code given below:
(a)    (i) & (iii) only
(b)    (ii), (iii) only
(c)    (ii) & (iv) only
(d)    (iii) & (iv) only

141.    Consider the following statements
regarding Goods and Services Tax
(GST):
(i)  Taxes need to be paid at each
point in the value chain (ii) It  will   have   input  tax  credit
mechanism (iii) Taxes will be paid on the value
added by any entity (iv) The total taxes will be passed
on to the consumers
Select the correct answer using the code given below:
(a)    (i) & (iii) only
(b)    (i), (ii) & (iii) only
(c)    (iii) & (iv) only
(d)    All of the above
142.    What does "Revenue Neutral Tax
Rate" means in reference to the
Goods and Services Tax":
(a)    The rate at which tax revenues for States and Centre will remain the same as before GST
(b)    The tax rate will be same for the Centre and State
(c)    The tax rate at which Central and States revenues will be same
(d)    All of the above
143.    Which of the following taxes are
part of the central "divisible pool".
(i)   Corporate Income Tax
(ii) Service Tax
(iii) Cess
(iv) Surcharge
Select the correct answer using the code given below:
29 | P a g e

SECTION - III

(a)    (i) only
(b)    (i) & (ii) only
(c)    (iii) & (iv) only
(d)    All of the above
144.    Which of the following is not a
parameter for horizontal distribution
of central tax proceeds within the
states as per the Fourteenth
Finance Commission report?
(a)    Population      &      Demographic change
(b)    Fiscal Discipline
(c)    Area & Forest Cover
(d)    Income Distance
145.    The Macroeconomic Vulnerability
Index (MVI) of a country is
constructed by adding together
which of the following:
(i)    Fiscal Deficit
(ii)    Current Account Deficit
(iii)    External Debt
(iv)    Inflation
Select the correct answer using the code given below:
(a)    (i), (iii) & (iv) only
(b)    (i), (ii) & (iv) only
(c)    (ii) & (iii) only
(d)    All of the above
146.    The term 'Crowd-out' in economy
is related to which of the following:
(i) Increased public sector spending replaces private sector spending
(ii) Governments deficit spending through borrowed money increases interest rates

(iii) Government spending uses up financial resources that would otherwise be used by private firms
(iv) Government providing a service or good that would otherwise be a business opportunity for private industry
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (ii) & (iii) only
(d)    All of the above
147.    The term 'Crowd-in' in the
economy is related to which of the
following?
(i)  Targeted government spending
acts as an engine of growth in
the short run
(ii) Government    spending
complements       the       private
investment
(iii) Government    spending
substitutes    the    private
investment (iv) Government   spending   boosts
demand for goods which in turn
increases private demand
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i) & (iii) only
(c)    (i), (ii) & (iv) only
(d)    (i), (iii) & (iv) only
148.    Consider the    following
statements regarding “Inverted Duty
Structure”:
30 | P a g e

SECTION - III   
(i)     It   makes   domestic   manufactured   
goods     less     competitive     against   
finished    product     imports     in    the   
domestic market.   
(ii)    Finished      goods      are      taxed      at   
higher         rate         than         the         raw   
materials   
(iii) Raw       materials       are       taxed       at   
higher      rate      than      the      finished   
products   
(iv) The    duty    in    the    “Inverted    Duty   
Structure” is Customs Duty   
Select the correct answer using the   
code given below:   
(a) (i) & (ii) only   
(b) (i) & (iii) only   
(c) (i) & (iv) only   
(d) (i), (iii) & (iv) only   
   
   
   
   
   
   
   

SECTION - IV

149.    Consider    the    following
statements:
(i) Insurance penetration is measured as the percentage of insurance premium to GDP
(ii) Insurance density is measured as the ratio of premium (in US dollar) to total population
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    (i) & (ii) both
(d)    Neither (i) nor (ii)
150.    If a factory is running at peak
production with certain number of
labourers then the marginal
productivity of labour will be:
(a)    Positive
(b)    Negative
(c)    Zero
(d)    One
151.    Which of the following statements
are true regarding Terms of trade'
(ToT) of a country with another
country:
(i)   It is ratio of export price index to
import price index (ii) It is a ratio of value of exports to
value of imports (iii) It is a  measure of how much
imports a country can get for a
unit of exported goods (iv) ToT increases with increase in
price of exported goods
Select the correct answer using the code given below:


(a)    (i) only
(b)    (ii) & (iv)
(c)    (i), (iii) & (iv) only
(d)    (ii), (iii) & (iv) only
152.    Which of the following are
Consistent/ compliant with WTO
trade rules:
(i)  Anti-Dumping Duty (ii) Safeguard measures (iii) Countervailing Duty
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (i) & (iii) only
(d)    All of the above
153.    As per the 'Food Security Act
2013', the beneficiaries will get rice,
wheat & coarse grains at Rs. 3/kg,
Rs. 2/kg & Rs. 1/kg respectively
from the Fair Price Shops. The
Centre will transfer the food grains
to the States for distribution at
which of the following prices:
(a)    At the same price
(b)    Above the mentioned price
(c)    Below the mentioned price
(d)    At zero prices or free
154.    Unemployment rate is defined as:
(a)    Number of people not in job as a ratio of total population
(b)    Number of people not in job as a ratio of labour force
(c)    Number of people not in job but actively looking for job as a ratio of labour force
32 | P a g e

SECTION - IV   
(d)   Number   of   people  not   in   job   but    (d)   He/   she   will   not   be   considered
actively looking  for   job as  a  ratio    as unemployed
of total population   
    159.    In                 case                 of                 disguised
155.    The unemployment caused due to    unemployment,          which          of          the
the      workers      living      far      from      the    following will hold true:
regions   and   are   unable   to   move   to   
the        locations        where        jobs        are    (i)     Marginal   productivity   of    capital
available is an example of:    will be zero
    (ii) Productivity of  labour will  be
(a)   Cyclical    less
(b) Frictional   
(c)   Structural    Select the correct answer using the
(d)   Disguised    code given below:
156. The unemployment caused due to    (a) (i) only
the workers lacking the requisite job    (b) (ii) only
skills is an example of:    (c) Both (i) & (ii)
    (d) Neither (i) nor (ii)
(a) Cyclical   
(b) Structural    160. Consider the following statements
(c) Frictional    regarding    an    economy    facing
(d) Disguised    cyclical unemployment:
157. In a country, jobs are available    (i)     It    may    lead    to    inflation    in     the
but still people are unemployed as    economy
there    is    a    serious    mismatch    (ii)   It    may    lead    to    deflation    in    the
between what companies need and    economy
what workers can offer. This kind of    (iii) It         can        be         tackled        through
unemployment is referred as:    expansionary monetary policy
    (iv) It         can        be         tackled        through
(a) Cyclical    expansionary fiscal policy
(b) Structural   
(c) Seasonal    Select   the   correct   answer   using   the
(d) Frictional    code given below:
158. A person has left his current job    (a)   (i) only
and   is   looking   for   another   job.   He/    (b)   (ii) only
she        is        facing        which        type        of    (c)   (i), (iii) & (iv) only
unemployment:    (d)   (ii), (iii) & (iv) only
(a)   Structural    161.    In     India,     the     agricultural     'Crop
(b)   Cyclical    Year' period is from:
(c) Frictional   
    33 | P a g e

SECTION - IV

(a)    1st January - 31st December
(b)    1st April - 31st March
(c)    1st July - 30th June
(d)    1st October - 30th September
162.    Rural Infrastructure Development
Fund (RIDF) is a fund under which
of the following institutions:
(a)    SIDBI
(b)    NABARD
(c)    India Infrastructure Finance Company Limited
(d)    Regional Rural Banks (RRBs)
163.    The National Census is
conducted by which of the following
offices/ agencies:
(a)    Central Statistical Office (CSO)
(b)    National Sample Survey Office (NSSO)
(c)    Registrar General and Census Commissioner, Ministry of Home Affairs
(d)    Census Bureau of India
164.    Which of the following issues
the "World Development Report"
periodically?
(a)    World Bank
(b)    International Monetary Fund
(c)    European    Bank    for Reconstruction and Development
(d)    Asian Development Bank
165.    The "Consumer Confidence
Survey" in India is conducted by
which of the following:
(a)    Reserve Bank of India
(b)    National Sample Survey Organization (NSSO)


(c)    Department of Consumer Affairs
(d)    Ministry of Labour & Employment
166.    Consider the following indices
and their publishers and match the
columns:
Index
(i)   Ease of doing business Index
(ii) Human Development Index
(iii) Global Hunger Index
(iv) Gini Index
Publisher
1.    International       Food       Policy Research Institute
2.    World Bank
3.    United    Nations    Development Programme
4.    International Monetary Fund
Select the correct answer using the code given below:
(a)    (i)-2, (ii)-3, (iii)-1, (iv)-4
(b)    (i)-4, (ii)-2, (iii)-3, (iv)-1
(c)    (i)-2, (ii)-3, (iii)-1, (iv)-2
(d)    (i)-4, (ii)-3, (iii)-1, (iv)-2
167.    The Multidimensional Poverty
Index (MPI) identifies multiple
deprivations at the household and
individual level in the following
areas :
(i)   Standard of living (ii) Education (iii) Health
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (i) & (iii)only
34 | P a g e

SECTION - IV       
(d)   All of the above    (a)   (i) only   
168.    Consider the following statements    (b)   (iii) & (iv) only   
regarding      the      mandate      of       NITI    (c)   (ii), (iii) & (iv) only   
Aayog:    (d)   All of the above   
(i)     Evolve        a        shared        vision        of       
national      development      priorities       
and     strategies     with     the     active       
involvement of states       
(ii)   Foster        competitive        federalism       
with centre competing with states       
and   states   competing   with   each       
other        in        pursuit        of        national       
development       
(iii) Decision making regarding policy       
and programme design on behalf       
of central and state governments       
(iv) Facilitating the implementation of       
the national development agenda       
Select the correct answer using the       
code given below:       
(a) (i) only       
(b) (i) & (iii) only       
(c) (i), (ii) & (iv) only       
(d) All of the above       
169. Which    of    the    following    are       
characteristics of 'Public Goods':       
(i)   Shall    be    provided    by    the       
government       
(ii) Cannot    be    provided    through       
market mechanism       
(iii) Not   possible   to   exclude   anyone       
from using these goods       
(iv) A   person   can   enjoy   the   benefits       
of   these   goods   without   reducing       
their availability to others       
Select   the   correct   answer   using   the       
code given below:        35 | P a g e

SECTION - V

170.    Consider the following statements
regarding National Investment
Infrastructure Fund (NI IF):
(a)    It is a company registered under Company's Act 2013
(b)    It is a trust registered under Indian Trust Act 1882
(c)It is a cooperative established under Multi-State Cooperative Society Act 2002
(d) None of the above
171.    Consider    the    following
statements:
(i) WPI based inflation has been in the negative zone in 2015-16
(ii) CPI based inflation has been in the negative zone in 2015-16
(iii) India's exports has declined in value terms in 2015-16 as compared to the previous year
(iv) India's imports has declined in value terms in 2015-16 as compared to the previous year
Select the correct answer using the code given below:
(a)    (i) & (iii) only
(b)    (iii) & (iv) only
(c)    (i), (iii) & (iv) only
(d)    All of the above
172.    With reference to the Indian
Economy in the Financial Year
2015-16, consider the following
statements:
(i)  The retail prices have  observed
disinflationary trend (ii) The    wholesale    prices    have
observed deflationary trend

Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
173.    Recently the various state
governments imposed stockholding
limits on traders to curb the rising
prices of pulses. This is done under
which of the following acts:
(a)    Essential Commodities Act 1955
(b)    Agricultural Produce Marketing Committee Act enacted by States
(c)    The Prevention of Black Marketing  and  Maintenance  of
Supplies    of    Essential
Commodities Act, 1980
(d)    Food Products Order 1956
174.    Recently the government
regulated (notified MRP) the price
of which of the following commodity
in consideration of the high royalty
value charged from the consumers?
(a)    Bt cotton seeds
(b)    Bt Brinjal seeds
(c)    Pulses
(d)    Onions
175.    Recently the central government
regulated (notified MRP) the price
of Bt cotton seeds under which of
the following acts?
(a) Essential Commodities Act 1955

36 | P a g e

SECTION - V

(b)    Agricultural Produce Marketing Committee Act enacted by States
(c)    The Prevention of Black Marketing and Maintenance of Supplies    of    Essential Commodities Act, 1980
(d)    Food Products Order 1956
176.    Special Safeguard Mechanism
(SSM) discussed in the recent WTO
Ministerial Conference is linked to
which of the following:
(a) A   mechanism   to   protect   the
exporters of a country (b)A   mechanism   to   protect   the
importers of a country (c)A   mechanism   to   protect   the
domestic     producers     against
surge in cheap imports (d)A mechanism to protect the world
trade   from   surge   in   bilateral/
multilateral trade agreements
177.    Which of the following are the
outcomes of the recently concluded
Nairobi Ministerial Conference:
(i)   Special   Safeguard   Mechanism
for developing countries (ii) Preventing    ever    greening    of
patents (iii) Commitment  to  abolish   export
subsidies for farm exports (iv) Preferential treatment to services
exports   originating   from   Least
Developed Countries
Select the correct answer using the code given below:
(a)    (i) & (iii) only
(b)    (i) & (iii) only


(c)    (ii) & (iii) only
(d)    All of the above
178.    Recently the 'Forward Market
Commission' has been merged with
which of the following institutions:
(a)    Securities and Exchange Board of India
(b)    Reserve Bank of India
(c)    Commission for Agricultural Cost and Prices
(d)    Insurance        Regulator       and Development Authority of India
179.    The Foreign Trade Policy of
2015-20 aims to increase the
exports of goods and services from
India by 2020 by the following
percent:
(a)    50%
(b)    75%

(c)    100%
(d)    125%
180.    As per the Mines and Mineral
(Development & Regulation)
Amendment Act 2015, the mine
lease holders need to establish a
body/ entity, for the benefit of
persons affected by mining related
operations, the name of which is:
(a)    District Mineral Foundation
(b)    Mine Development Fund
(c)    District Mining Trust
(d)    Area Development Fund
181.    Consider the following statements
regarding the “Price Stabilization
Fund” launched recently under
Ministry of Agriculture:

37 | P a g e

SECTION - V

(i)   It will promote direct purchase of
produce from farmers (ii) It will maintain a strategic buffer
stock (iii) It   will   protect   consumers   by
supplying       commodities       at
reasonable prices (iv) It is a kind of market intervention
scheme
Select the correct answer using the code given below:
(a)    (ii) only
(b)    (ii) & (iii) only
(c)    (i), (ii), (iii) only
(d)    All of the above
182. Which agency will be acting as
the Fund Manager for the “Price
Stabilization Fund” launched for
Perishable    Agri-horticulture
produce?
(a)    National Agricultural Co¬operative Marketing Federation of India (NAFED)
(b)    Small Farmers Agri-Business Consortium (SFAC)
(c)    Food Corporation of India (FCI)
(d)    National Consumer Cooperative Federation of India (NCCF)
183. Consider    the    following
statements:
(i) Minimum Export Price (MEP) is the price below which exports are not permitted
(ii) MEP is imposed to curb the price rise and prevent disruptions in domestic supply

(iii) Minimum Import Price (MIP) is the price below which imports are not allowed
(iv) MIP is imposed to curb imports and protect domestic producers
Select the correct answer using the code given below:
(a)    (i) & (iii) only
(b)    (ii) & (iii) only
(c)    (ii) , (iii) & (iv) only
(d)    All of the above
184.    Consider the following statements
regarding the “Gold Monetization
Scheme”:
(i)    It will help in mobilization    of
gold  held  by households and
institutions (ii)   It will facilitate the use of gold
for productive purpose (iii)   It will help in reducing import of
gold and Current Account Deficit
(CAD) (iv)  Banks will be allowed to lend
this gold to jewellers
Select the correct answer using the code given below:
(a)    (i) & (iii) only
(b)    (i), (ii) & (iii) only
(c)    (ii) & (iv) only
(d)    All of the above
185.    The names 'Shishu', 'Kishor' and
Tarun' are related to which of the
following recently launched
government scheme:
(a)    MUDRA Bank
(b)    Payment Bank
38 | P a g e

SECTION - V

(c)    Rural Infrastructure Development Fund
(d)    Soil Health Cards
186.    Consider the following statements
regarding the recently launched
MUDRA Bank:
(i) It will provide direct lending to small entrepreneurs
(ii) MUDRA loans will be available for manufacturing, trading and service activities
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (ii)
(d)    Neither (i) nor (ii)
187.    Consider the following statements
regarding Payment Banks:
(i)  They accept savings deposits (ii) They accept Time Deposits (iii) They can lend (iv) They cannot lend
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i) & (iii) only
(c)    (iii) only
(d)    (i) & (iv) only
188.    Consider the    following
statements regarding payment
banks:
(i)  They    will     be    set    up    as differentiated banks

(ii) They may act as Business Correspondents for other banks
(iii) They will provide payments / remittance services to migrant labour workforce and small businesses
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only
(c)    (ii) & (iii) only
(d)    All of the above
189.    Consider the following statements
regarding “Small Finance Banks”:
(i)  They will promote savings from
unserved     sections     of     the
population (ii) They will supply credit to small
business   units,   small   farmers,
micro and small industries and
unorganized sector (iii) They shall comply with reserve
requirements of RBI i.e. CRR &
SLR (iv) They   shall    comply   with   the
priority sector lending target
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) & (iv)
(c)    (i), (iii) & (iv)
(d)    All of the above
190.    The    main    objectives    of    the
'Standup India' scheme are:
(i)   Promote    entrepreneurship
among SC/CT people
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(ii) Promote    entrepreneurship
among women
Select the correct answer using the code given below:
(a)    (i) only
(b)    (ii) only
(c)    Both (i) & (i)
(d)    Neither (i) nor (ii)
191.    Consider the following statements
regarding “5/25 scheme” introduced
in the FY 2014-15.
(i) Applicable to infrastructure and
core sector (ii) Helpful     for     long     gestation
projects (iii) It is a refinancing scheme (iv) It has been introduced by RBI
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii)
(c)    (i), (iii) & (iv)
(d)    All of the above
192.    Consider the    following
statements regarding the “Kisan
Vikas Patra” reintroduced by the
government in 2014
(i)   It is a savings scheme
(ii) No maximum limit on investment
(iii) Only farmers can purchase
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (ii) only


(c)    (i) & (iii) only
(d)    All of the above
193. Consider the following statements regarding 'Soil Health Card' Scheme launched recently:
(i) It aims to provide soil health card to every farmer in the next three years
(ii) It will carry crop wise recommendations of nutrients/ fertilizers required for the farm
(iii) Soil Testing will be done once in every three years
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i) & (iii) only
(c)    (ii) & (iii) only
(d)    All of the above
'194. Consider the following statements regarding the new "Pradhan Mantri Fasal Bima Yojana":
(i)  Available to sharecroppers and
tenant farmers (ii) The government has capped its
subsidy burden for the payment
of premium (iii) The farmers will get the full sum
insured without any reduction (iv) Mandatory use of technology for
quicker settlement of claims
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i), (iii) & (iv) only
(c)    (i), (ii) & (iii) only
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(d) All of the above
195.    The government is launching the
"Pradhan Mantri Fasal Bima
Yojana" from Kharif season 2016. In
light of the above which of the
following crop insurance schemes
has been discontinued from April
2016.
(i)  Weather Based Crop Insurance
Scheme (WBCIS) (ii) National   Agricultural   Insurance
Scheme (NAIS) (iii) Modified   Agricultural   Insurance
Scheme (MNAIS) (iv) Coconut        Palm        Insurance
Scheme
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (ii) & (iii) only
(c)    (i) & (iv) only
(d)    All of the above
196.    Consider the following statements
regarding the National Agricultural
Market (NAM) launched in April
2016:
(i) It is an online platform with physical markets at the backend
(ii) It will integrate the APMC mandis of various states
(iii) NAM will increase the choice for farmers to sell his produce
(iv) Small Farmers Agribusiness Consortium (SFAC) is acting as the nodal agency for NAM
Select the correct answer using the code given below:


(a)    (i) & (iii) only
(b)    (i), (ii) & (iii) only
(c)    (i) & (iv) only
(d)    All of the above
197.    Consider the following statements
regarding UDAY scheme:
(i) The scheme plans to reform the
power distribution sector (ii) It is mandatory for states to join
the scheme (iii) The   Central   government   will
take over the debt of distribution
companies (iv) The state government will take
over   the   debt   of   distribution
companies
Select the correct answer using the code given below:
(a)    (i) only
(b)    (i) & (iii) only
(c)    (i) & (iv) only
(d)    (ii) & (iv) only
198.    Consider the following statements
regarding the 'Nutrient Based
Subsidy' Scheme.
(i)   It is given for phosphatic and
potassic fertilizers (ii) It is given for urea (iii) The  prices  of fertilizers   under
nutrient    based    scheme    are
regulated by the government (iv) Subsidy is based on per kg of
nutrients present in the fertilizer
Select the correct answer using the code given below:

41 | P a g e

SECTION - V
(a)    (i) & (iii) only
(b)    (ii) & (iii) only
(c)    (i) & (iv) only
(d)    (iii) & (iv) only
199.    Which of the following are the
objectives of the "New Urea Policy
2015":
(i)   Maximizing     indigenous     urea
production (ii) Promoting energy efficiency and
reducing the carbon-footprint (iii) Reducing the subsidy burden of
the government (iv) Adopting best technology in the
world and become globally more
competitive
Select the correct answer using the code given below:
(a)    (i) & (ii) only
(b)    (i), (ii) & (iii) only
(c)    (ii), (iii) & (iv) only
(d)    All of the above
200.    Which of the following statements
are true regarding the present
subsidy regime for urea fertilizer
(i)It is sold at a government notified
price (ii) The imports of urea in India is
canalized (iii) The subsidy is given on a cost
plus basis (iv) Mandatory production of neem
coated     urea     for     domestic
producers
Select the correct answer using the code given below:
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