economics current affairs questions
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1. The currency convertibility concept in its original form originated in
[A] Wells Agreement
[B] Bretton Woods Agreement
[C] Taylors Agreement
[D] None of the above
Correct Answer: B
2. Which of the following schemes have been subsumed in the recently approved Ayushman Bharat – National Health Protection Mission (AB-NHPM)?
[A] Rashtriya Swasthya Bima Yojana (RSBY)
[B] Senior Citizen Health Insurance Scheme (SCHIS)
[C] National Life Insurance Scheme
[D] 1 & 2
Correct Answer: D [ 1 & 2 ]
Notes:
Ayushman Bharat -National Health Protection Mission (AB-NHPM) is a centrally sponsored scheme under Ayushman Bharat Mission. The scheme will provide insurance cover of Rs. 5 Lakh per family per year. The scheme will benefit more than 10 crore families belonging to poor and vulnerable population. AB-NHPM will subsume the on-going centrally sponsored schemes –Rashtriya Swasthya Bima Yojana (RSBY) and the Senior Citizen Health Insurance Scheme (SCHIS).
3. In the state of India, the State Financial Corporation have given assistance mainly to develop
[A] agricultural farms
[B] cottage industry
[C] large-scale industries
[D] medium and small-scale industries
Correct Answer: D
4. In census 2011, which of the following have minimum density of population?
[A] Bihar
[B] Kerala
[C] Goa
[D] Arunachal Pradesh
Correct Answer: D
5. The central co-operative banks are in direct touch with
[A] farmers
[B] state co-operative banks
[C] land development banks
[D] central government
Correct Answer: B
6. Which of the following tax is imposed by the state government?
[A] Gift tax
[B] Property tax
[C] Road tax
[D] None of these
Correct Answer: C
7. The first wholly Indian Bank was set up in
[A] 1794
[B] 1894
[C] 1896
[D] 1902
Correct Answer: B
8. Which of the following is used to denote broad money?
[A] M1
[B] M2
[C] M3
[D] M4
Correct Answer: C [M3]
Notes:
Narrow Money M1 = Currency with the public + Demand Deposits of public in Banks When a third component viz. Post office Savings Deposits is also added to M1, it becomes M2. M2 = M1 + Post Office Savings.
Broad Money M3 = Narrow money + Time Deposits of public with banks
9. States earn maximum revenue through
[A] land revenue
[B] custom revenue
[C] commercial taxes
[D] excise duties on intoxicants
Correct Answer: C
10. Which of the following is not matched correctly?
[A] IFCI established : 1948
[B] NABARD established : 1982
[C] EXIM Bank established :1988
[D] SIDBI established : 1990
Correct Answer: C
11. Our financial system has provided for the transfer of resources from the centre to the states; the important means of resource transfer are
[A] tax sharing
[B] grant-in-aids
[C] loans
[D] All the above
Correct Answer: D
12. Balance of payment includes only …………..…in its calculation.
[A] Visible goods
[B] Invisible goods
[C] Both a & b
[D] None of these
Correct Answer: C
13. Debenture holders of a company are its
[A] shareholders
[B] creditors
[C] debtors
[D] directors
Correct Answer: B
14. Which of the following statement is correct?
[A] Balance of trade includes only invisible goods.
[B] Balance of payment is always in equilibrium in accounting sense
[C] When export exceeds the import the balance of payment is termed as unfavourable
[D] When local currency devaluates the exported quantity of the domestic country decreases
Correct Answer: B
15. Excise duty is a tax levied on the
[A] import of goods
[B] export of goods
[C] production of goods
[D] sale of goods
Correct Answer: C
Explanation:
What is Excise Duty? Is it collected by the State Government or the Central Government? How is it different from Sales Tax?
Excise duty is a tax on manufacture or production of goods. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called "State Excise" duty. The Excise duty on rest of goods is called "Central Excise" duty and is collected in terms of Section 3 of the Central Excise Act, 1944.
Sales Tax is different from the Excise duty as former is a tax on the act of sale while the latter is a tax on the act of manufacture or production of goods.
16. Which among the following is NOT a subsidiary of RBI?
[A] National Housing Bank
[B] NABARD
[C] Bharatiya Reserve Bank Note Mudran Private Limited
[D] SIDBI
Correct Answer: D [SIDBI ]
Notes:
RBI has four subsidiaries viz. Deposit Insurance and Credit Guarantee Corporation, DICGC; National Housing Bank; Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) and NABARD.
17. In pursuance with the recommendations of Narsimhan Committee, the RBI has framed new guidelines
[A] to govern entry of new private sector banks to make the banking sector more competitive
[B] to reduce the freedom given to banks to rationalize their existing branch network
[C] to setup more foreign exchange banks
[D] to lend more easily for industrial development
Correct Answer: A
18. Appreciation of domestic currency means…………………..???
[A] Value of domestic currency increases
[B] Value of domestic currency decreases
[C] First increases then decreases
[D] First decreases then increases
Correct Answer: A
19. Which of the following is the first Indian private company to sign an accord with Government of Myanmar for oil exploration in two offshore blocks in that country?
[A] Reliance Energy
[B] Essar Oil
[C] GAIL
[D] ONGC
Correct Answer: B
20. Inflation is situation in which…………………………..
[A] Value of money decreases
[B] Value of money increases
[C] First increases then decreases
[D] First decreases then increases
Correct Answer: A
21. Non Tax revenues can be increased by improving the working of the
[A] State Road Transport Corporations
[B] electricity boards
[C] commercial irrigation projects
[D] All of the above
Correct Answer: C
22. Why a government does devaluation of its currency?
[A] To increase export
[B] To reduce import
[C] To decrease export
[C] Both a & b
Correct Answer: D
23. Which of the following is not viewed as a national debt?
[A] Provident Fund
[B] Life Insurance Policies
[C] National Saving Certificate
[D] Long-term Government Bonds
Correct Answer: C
24. Which among the following is a qualitative tool of monetary policy?
[A] Bank Rate
[B] Credit Ceiling
[C] Credit rationing
[D] Cash Reserve Ratio
Correct Answer: C [Credit rationing ]
Notes:
The quantitative instruments are Open Market Operations, Liquidity Adjustment Facility (Repo and Reverse Repo), Marginal Standing Facility, SLR, CRR, Bank Rate, Credit Ceiling etc.
On the other hand, qualitative instruments are: credit rationing, moral suasion and direct action (by RBI on banks).
25. The condition of indirect taxes in the country's revenue is approximately
[A] 70 percent
[B] 75 percent
[C] 80 percent
[D] 86 percent
Correct Answer: D
27. Which of the following statement is not correct?
[A] Birth rate is number of the births per thousand of the population during a year.
[B] Blue chip is a company which does not guarantee about the return on an investment
[C] Bull is a persons who is optimistic about the share market
[D] Boom is a situation of an economy in which price and employment are the maximum
Correct Answer: B
28. Deficit financing means that the government borrows money from the
[A] RBI
[B] local bodies
[C] big businessmen
[D] IMF
Correct Answer: A
29. What kind of unemployment is found in the agricultural sector of India?
[A] Situational
[B] Voluntary
[C] Frictional
[D] Disguise
Correct Answer: D
30. Revenue of the state governments are raised from the following sources, except
[A] entertainment tax
[B] expenditure tax
[C] agricultural income tax
[D] land revenue
Correct Answer: C
31. Which among the following closest instrument to Gold ETF?
[A] Debenture
[B] G-Sec security
[C] Mutual Fund
[D] Commercial Paper
Correct Answer: C [Mutual Fund ]
Notes:
Gold ETFs (Paper Gold) are mutual fund schemes that invest in standard gold bullion (of 99.5% purity). The value of an ETF is based on price of gold. These are alternative to owning physical gold.
32. Since the inception of the co-operative movement, rural credits has been
[A] institutionalized
[B] rationalized
[C] cheapened
[D] All of the above
Correct Answer: D
33. Which of the following statement is true about Mission Indradhanush?
(i) It was launched by Union Health Minister.
(ii) It covers 5 diseases
(iii) It was started on 5 Dec. 2013
Options are:
[A] Only ii, iii
[B] Only i,iii
[C] Only i
[D] All of the above
Correct Answer: C
34. Which of the following is the biggest contributor in India’s foreign exchange reserve?
[A] Special drawing rights
[B] Gold
[C] Reserve with IMF
[D] Foreign exchange assets
Correct Answer : D
35. If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be
[A] zero
[B] equal to government income
[C] larger than government income
[D] negative
Correct Answer: B
36. Which among the following is NOT a pillar of Basel III?
[A] Minimum capital standards
[B] Supervisory review
[C] Market discipline
[D] Consolidation of assets
Correct Answer: D [Consolidation of assets ]
Notes:
The Basel III framework is based on 3 components called 3 pillars, which include:
Pillar 1 : Minimum capital standards,
Pillar 2 : Supervisory review and
Pillar 3 : Market discipline.
37. The co-operative credit societies have a
[A] two-tier structure
[B] three-tier structure
[C] four-tier structure
[D] five-tier structure
Correct Answer: B
38. Which of the following is NOT true about service tax in India?
[A] It was started in 1994-95
[B] Currently its rate is 15%
[C] It is the biggest contributor of Indian GDP
[D] All of the above are incorrect
Correct Answer: D
39. Regional rural banks
I. have limited area of operation
II. have free access to liberal refinance facilities from NABARD
III. are required to lend only to weaker sections
[A] I, III
[B] II, III
[C] I, II, III
[D] I, II
Correct Answer: D
40. Which of the following tax is imposed by the central government but collected and kept by the state governments?
[A] Excise duty
[B] Custom duty
[C] Stamp duty
[D] Wealth tax
Correct Answer: C
41. The Board of Industrial and Financial Reconstruction (BIFR) came into existence in
[A] 1984
[B] 1986
[C] 1987
[D] 1989
Correct Answer: C
Explanation:The BIFR was established under the The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The board was set up in January 1987 and became functional as of 15 May 1987.
42. Who among the following never hold the office of chairman of finance commission?
[A] Pranab Mukherjee
[B] Mahaveer Tyagi
[C] K.C. Pant
[D] C. Rangarajan
Correct Answer: A
43. The current price index (base 1960) is nearly 330. This means that
[A] all items cost 3-3 times more than what they did in 1960
[B] the prices of certain selected items have gone up to 3-3 times
[C] weighted means of prices of certain item has increased 3-3 times
[D] gold price has gone up 3-3 times
Correct Answer: C
Explanation:It means when in 1960 Say the price is 100 & presently is 330 Means on average basis prices are increased to 3.3 Times than in 1960.
44. What term is used for maximum capital which the company can raise in its life time?
[A] Authorized Capital
[B] Registered Capital
[C] Nominal Capital
[D] All of them
Correct Answer: D [All of them ]
45. Notes on which denomination has the portrait of Mahatma Gandhi printed on them?
[A] 1000 rupee
[B] 500 rupee
[C] 100 rupee
[D] All of the above
Answer: Option D
Explanation:
All the Indian currency notes have a portrait of Mahatma Gandhi.
46. Which of the following option is true about the finance commission?
(i) Article 112 of the Indian constitution says that there will be a finance commission.
(ii) This commission is set up by the prime minister for 5 years.
(iii) 14th finance commission is set up under the chairmanship of Y.B. Reddy
(iv) The tenure of 14th finance commission is from 2015-2020.
Options are:
[A] Only i,ii
[B] Only I,ii,iii
[C] Only iii,iv
[D] All are correct
Correct Answer: C
47. Devaluation of currency will be more beneficial if
[A] prices of domestic goods remain constant
[B] prices of exports remain constant
[C] prices of imports remains constant
[D] prices of exports rise proportionately
Correct Answer: B
Explanation:Devaluation of domestic currency is a deliberate step taken by the Government mainly to reduce the value of domestic currency against the king currencies of the world. It is to be ratified by the International Monetary Fund (IMF). The purpose is to boost the exports to correct the fundamental disequilibrium in balance of payments. At that time, the prices of exports must remain the same. Let us discuss with an illustration. For example if Indian currency is devalued against American dollar, the value of American dollar in terms of Indian currency would go up. By keeping the export price constant, Americans could now be able to purchase more of Indian goods in foreign trade (because the value of American currency has relatively increased). This would be possible only if the export price remains constant. If it doesn't remain constant, the value of American currency will become flexible and will not respond to decrease in value of Indian currency. As a result, the purpose will not be served. Simultaneously, the value (price) of American goods would be more costlier to Indians. This will help to reduce imports. This is possible only in liberal trade conditions and therefore the policy of protection should not apply. There should be no retaliatory measure from the opposite side. Hence the prices of exports remain constant.
48. Which of the following statement is not true about Indian budget 2016-17?
[A] Government spends 10% share of its revenue on defense and subsidy each
[B] Share to states in terms of tax and duties is the biggest item of expenditure
[C] Revenue from Corporation tax is more than income tax.
[D] Revenue from excise duty is more than income tax
Correct Answer: D
49. Of the gross tax revenue of the Union Government the indirect taxes account for nearly
[A] 70 per cent
[B] 75 percent
[C] 65 percent
[D] 60 percent
Correct Answer: C
50. Which among the following was the first bank purely managed by Indians?
[A] Oudh Commercial Bank
[B] Punjab National Bank
[C] Bank of India
[D] Allahabad bank
Correct Answer: B [Punjab National Bank ]
Notes:
The first Bank with Limited Liability to be managed by Indian Board was Oudh Commercial Bank. It was established in 1881 at Faizabad. This bank failed in 1958. The first bank purely managed by Indians was Punjab National Bank, established in Lahore in 1895
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