Post on 07-Aug-2020
UPSCTREE [PRELIMS TEST – PE2 –ECONOMY]
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PE2- UPSCTREE PRELIMS TEST SERIES
Economy Survey- Part 1, Budget- Part 1 ; Current Events
Q.1) Consider the following statements:-
1)In Asian financial crisis of late 1990s, there was a capital flight from
these countries.
2)In Global financial crisis of 2008, there was a capital inflow in to
United states.
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Asian Financial Crisis (AFC) :- In the AFC of the late 1990s, the transmission
mechanism was similar—namely, overheating and unsustainable external positions
under fixed exchange rates—but the instigating impulse was private borrowing
rather than government borrowing. The troubles in Eastern Europe in 2008 belonged
to this category. The 2013 mini-crises in a number of emerging markets following the
Federal Reserve’s “taper tantrum” were also similar to the Asian crisis, with the
difference that affected countries had more flexible exchange rates which obviated
the large disruptive changes that occur when fixed regimes collapse. Global Financial
Crisis (GFC):- The GFC of 2008, with America as its epicentre, was unique in that it
involved a systemically important country and originated in doubts about its financial
system. The effects radiated out globally, with the irony that even though the
problems originated in the American financial system, there was a flight of capital
toward the United States, which triggered a sharp appreciation of the dollar and
significant currency depreciations in emerging markets. In this way, the GFC, while
inflicting an adverse financial shock on the rest of the world, simultaneously set in
motion an adjustment mechanism that helped emerging markets recover from the
crisis.
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Q.2) Consider the following statements:-
1)The Japanese crisis was due to corporate lending crisis and did not
have much impact worldwide.
2)The Global financial crisis was triggered by household borrowing
crisis otherwise known as sub-prime mortgage crisis.
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.3) Consider the following statements:-
1)It is believed that crisis in economy is inevitable.
2)The next crisis is predicted to occur due to corporate lending crisis.
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
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Q.4) Consider the following statements:-
1)India's macro vulnerability index shows that there is increment in
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macro-economic resilience for the past few years.
2)India is ranked as "BAA" in investment grade.
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
India is ranked as "BBB" in investment grade.
Q.5) Consider the following statements:-
1)A 1 percentage point decrease in the world growth rate is now
associated with a 0.42 percentage point decrease in Indian growth
rates.
2)The real GDP growth rate of India is expected to be 7-7.75%
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.6) Consider the following statements with regards to Indian start ups:-
1)In India, the number of start ups (in FY 2016) is more than 15,000.
2)Of the total start ups in India , approximately 50% of the start ups
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were created in 2015 alone.
3)At least 10 Indian startups belonged to the ‘Unicorn’ club
(valuations greater than $1 billion).
Which of the above statement/s are correct ?
A.
1 ,2 only
B.
2,3 only
C.
1,2,3
D.
1 only
Explanation:
19,400 start ups as yet and of the total start ups in India , approximately 25% of the
start ups were created in 2015 alone.Eight Indian startups belonged to the ‘Unicorn’
club (valuations greater than $1 billion).
Q.7) Consider the following statements:-
1)El-Nino event adversely affects Indian agriculture as it results in
deficient monsoon.
2)La-Nina event , on the contrary results in normal/above normal
rainfall in India.
3)The El-Nino and La-Nina circulation around the equator is called
Walker circulation.
Which of the above statement/s are correct ?
A.
1 and 2 only
B.
2 and 3 only
C.
1,2,3
D.
1 and 3 only
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Explanation:
Q.8) Consider the following statements:-
1)El-Nino year is usually followed by a La-Nina year.
2)El-Nino occurs when there is warming of Peru current in the west
coast of South America.
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Since 1950, there have been 22 El Niño events of varying durations and intensities
but out of the 21 prior to this one, 9 have been followed by La Niña, involving an
abnormal cooling of sea surface waters along the tropical west coast of South
America
Q.9) Consider the following statements:-
1)Indian ocean dipole is a phenomenon where the tropical Indian
Ocean waters near Africa become warmer relative to those around
Indonesia.
2)A positive Indian ocean dipole cancels or minimizes El-Nino effects
on Indian agriculture.
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
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D.
Neither 1 nor 2
Explanation:
The monsoon could also be good due to other favourable factors such as a “positive
Indian Ocean Dipole”. The latter phenomenon – where the eastern tropical Indian
Ocean waters near Africa become warmer relative to those around Indonesia –
prevented at least two El Niño years (1997 and 2006) from resulting in droughts in
India.
Q.10) Consider the following statements:-
1)Indradhanush scheme aims at bank recapitalization in a phased
manner.
2)Indradhanush mission aims at providing immunity against 7
diseases.
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.11) Consider the following statements:-
1)Bound tariffs are specific commitments made by individual WTO
member governments.
2)The bound tariff is the maximum MFN tariff level for a given
commodity line.
3)Bound tariffs are not necessarily the rate that a WTO member
applies in practice to other WTO members' products
Which of the above statement/s are correct ?
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A.
1 and 2 only
B.
2 and 3 only
C.
1,2,3
D.
1 only
Explanation:
Q.12) When world prices go up or there is domestic scarcity, export
restrictions or bans are imposed; when the reverse happens, import
tariffs are imposed. But this policy volatility actually ends up hurting
farmers (of course) but eventually also consumers. This is because :-
1)Farmers produce more because of the policy volatility which
results in increased domestic availability and hence lower prices.
2)Policy uncertainty dampens, even chills the incentive to produce.
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Farmers produce less because of the policy volatility which results in reduced
domestic availability and hence higher prices.
Q.13) Consider the following statements:-
1)Ujjwal Discom Assurance Yojana provides for the financial
turnaround and revival of Power Distribution companies
2)It is mandatory for states to join UDAY scheme within 1 year.
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Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.14) P. J. Nayak Committee was constituted to Review Governance of
Boards of Banks in India that recommended which of the following
:-
1)Scrapping and removal of Bank Nationalisation Acts and SBI Act.
2)Government should transfer its shares of PSBs to Bank investment
Company (BIC), with functional autonomy.
3)Conversion of of PSBs into Companies as per the Companies Act.
A.
1 and 2 only
B.
1 and 3 only
C.
3 only
D.
1,2,3
Explanation:
Q.15) Consider the following statements:-
1)Gyan Sangram is a conclave to revive the Indian education sector.
2)Refinery products are part of eight core industries.
Which of the above statement/s are correct ?
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A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Gyan Sangam” - a conclave of PSBs and FIs to discuss issues of concerns to optimize
governance in banking sector. The eight core sector industries are— coal, crude oil,
natural gas, refinery products, fertilizer, steel, cement and electricity.
Q.16) Which of the countries are put under "Fragile Five" :-
1)Brazil
2)Indonesia
3)Turkey
4)South Africa
5)India
6)Vietnam
7)Philippines
8)Malaysia
A.
1,2,3,4,5
B.
1,2,4,5,7
C.
2,3,5,6,7
D.
1,2,3,4,6
Explanation:
Q.17) Macroeconomic vulnerability index (MVI) has been constructed
which adds together a country's :-
1)Balance of Payment
2)Inflation
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3)Forex
4)Current Account Deficit
5)Fiscal Deficit
Which of the above statement/s are correct ?
A.
2,4,5
B.
1,2,5
C.
2,3,4,5
D.
1,2,4
Explanation:
Q.18) Consider the following statements:-
1)"Chakravyuha" challenge is more a feature of the relatively
traditional sectors of the economy of India
2)"Chakravyuha" challenge describes the policy impediments in India
in case of the exit of the institutions from the economy.
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
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The Charkravyuha legend from the Mahabharata describes the ability to enter but
not exit, with seriously adverse consequences. It is a metaphor for the workings of
the Indian economy in the 21st century, the legacy of several decades of economic
policy making.
Q.19) Consider the following statements:-
1)Minimum support prices (MSPs) were envisioned as an insurance
mechanism for farmers, but have become price floors instead.
2)MSP resulted in favouring some crops in some regions at the
expense of others.
Which of the above statement/s are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 and 2
Explanation:
Q.20) An increase in the Bank Rate generally indicates that the
A.
Market rate of interest is likely to fall
B.
Central Bank is following a tight money policy
C.
Central Bank is following an easy money policy
D.
Central Bank is no longer making loans to commercial banks
Explanation:
Bank Rate - RBI lends money to its clients for long term loans at this interest rate.
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Q.21) Which of the following grants/ grant direct credit assistance to
rural households?
1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks
Select the correct answer using the codes given below:
A.
1 and 2 only
B.
2 only
C.
1 and 3 only
D.
1,2,3
Explanation:
NABARD doesn’t give “direct” credit assistance. It provides credit via intermediaries
such as Microfinance companies, cooperative society, RRB.
Q.22) Consider the following liquid assets:
1. Demand deposits with the banks
2. Time deposits with the banks
3. Savings deposits with the banks
4. Currency
The correct sequence of these decreasing order of Liquidity is
A.
1-4-3-2
B.
4-3-2-1
C.
2-3-1-4
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D.
4-1-3-2
Explanation:
Q.23) In the context of Indian economy, Open Market Operations refers to
:-
A.
borrowing by scheduled banks from the RBI
B.
lending by commercial banks to industry and trade
C.
purchase and sale of government securities by the RBI
D.
None of the above
Explanation:
Q.24) Priority Sector Lending by banks in India constitutes the lending
to
A.
agriculture
B.
micro and small enterprises
C.
weaker sections
D.
All of the above
Explanation:
Q.25) Supply of money remaining the same when there is an increase in
demand for money, there will be
A.
a fall in the level of prices
B.
an increase in the rate of interest
C.
a decrease in the rate of interest
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D.
an increase in the level of income and employment
Explanation:
Q.26) Which of the following constitute Capital Account?
1. Foreign Loans
2. Foreign Direct Investment
3. Private Remittances
4. Portfolio Investment
Select the correct answer using the codes given below.
A.
1, 2 and 3
B.
1, 2 and 4
C.
2, 3 and 4
D.
1, 3 and 4
Explanation:
Q.27) Which one of the following groups of items is included in India’s
foreign-exchange reserves?
A.
Foreign-currency assets, Special Drawing Rights (SDRs) and loans
from foreign countries
B.
Foreign-currency assets, gold holdings of the RBI and SDRs
C.
Foreign-currency assets, loans from the World Bank and SDRs
D.
Foreign-currency assets, gold holdings of the RBI and loans from
the World Bank
Explanation:
India’s foreign exchange reserves is made up of Foreign currency assets (FCA) (US
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dollar, euro, pound sterling, Canadian dollar, Australian dollar and Japanese yen etc.)
gold special drawing rights (SDRs) of IMF Reserve tranche position (RTP) in the
International Monetary Fund (IMF)
Q.28) Consider the following statements:
1. Inflation benefits the debtors.
2. Inflation benefits the bond-holders.
Which of the statements given above is/are correct?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Inflation redistributes wealth from creditors to debtors i.e. lenders suffer and
borrowers benefit out of inflation. Bond holders lend money (to debtor) and received
bond in return so he suffers.
Q.29) A rise in general level of prices may be caused by
1. an increase in the money supply
2. a decrease in the aggregate level of output
3. an increase in the effective demand
Select the correct answer using the codes given below.
A.
1 only
B.
1 and 2 only
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C.
2 and 3 only
D.
1, 2 and 3
Explanation:
Q.30) Which one of the following is likely to be the most inflationary
in its effect?
A.
Repayment of public debt
B.
Borrowing from the public to finance a budget deficit
C.
Borrowing from banks to finance a budget deficit
D.
Creating new money to finance a budget deficit
Explanation:
Q.31) Economic growth in country X will necessarily have to occur if
A.
there is technical progress in the world economy
B.
there is population growth in X
C.
there is capital formation in X
D.
the volume of trade grows in the world economy
Explanation:
Internally capital formation takes place when a country does not spend all its current
income and consumption, but saves a part of it and uses it for investment for
increasing further production. This act of saving and investment is described as
capital accumulation or capital formation.
Q.32) To obtain full benefits of demographic dividend, what should India
do?
A.
Promoting skill development
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B.
Introducing more social security schemes
C.
Reducing infant mortality rate
D.
Privatization of higher education
Explanation:
Q.33) Which of the following forms part of new categories added in the
priority sector since 2015?
1)Medium Enterprises
2) Social Infrastructure
3) Renewable Energy
4)Handicraft
5)Agriculture allied services
A.
1,2,3 only
B.
2 and 3 only
C.
2,3,5 only
D.
3 and 5 only
Explanation:
Categories of the priority sector: Medium Enterprises, Social Infrastructure and
Renewable Energy will form part of priority sector, in addition to the existing
categories. Categories under priority sector Agriculture Micro, Small and Medium
Enterprises Export Credit Education Housing Social Infrastructure Renewable Energy
Others
Q.34) Consider the following statements:-
1)The government spends nearly 7 per cent of GDP subsidising
various commodities and services.
2)The ratio of taxpayers to voters in India is only about 9 percent
that is for every 100 voter , only 9 people pay tax.
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Which of the above statement/s are correct
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
The ratio of taxpayers to voters in India is only about 4 percent, whereas it should be
closer to 23 percent.The government spends nearly 4.2 per cent of GDP subsidising
various commodities and services.
Q.35) Consider the following statements:-
1)A free trade agreement is a preferential arrangement in which
members reduce tariffs on trade among themselves, while
maintaining their own tariff rates for trade with nonmembers
2)A customs union (CU) is a free-trade agreement in which members
apply a common external tariff (CET) schedule to imports from
nonmembers.
3)A common market is a customs union where movement of factors
of production is relatively free amongst member countries.
4)An economic union is a common market where member countries
coordinate macro-economic and exchange rate policies.
Which of the above statement/s are correct
A.
1 and 2 only
B.
2,3,4 only
C.
1 and 4 only
D.
1,2,3,4
Explanation:
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Q.36) Consider the following statements:-
1)Informal firms in India account for most employment growth and
nearly all the increase in the number of establishments since 1989.
2)The Formal sector in India created more than half of the jobs in
Manufacturing Since 1989.
Which of the above statement/s are correct
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Of the 10.5 million new manufacturing jobs created between 1989 and 2010, only 3.7
million—about 35 per cent—were in the formal sector
Q.37) Consider the following statements:-
1)The Indian Railways is one of the largest transportation networks
in the world and consumes 7 per cent of the country’s total
electricity consumption.
2)The electricity bill of railway amounts to 25% of its total budget
per annum.
Which of the above statement/s are correct
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
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Explanation:
The Indian Railways (IR), one of the largest transportation networks in the world,
consumes 17.5 billion units of energy (1.7 per cent of the country’s total electricity
consumption.
Q.38) Consider the following provisions and find out the correct ones with
respect to Ujwal DISCOM Assurance Yojana :-
1)States shall take over 75 per cent of discom debt outstanding till
date and take over future losses of discoms in a phased manner.
2)Reduction of Aggregate Technical & Commercial (AT&C) losses to
15 per cent by 2018-19.
3)Increased supply of domestic coal to substitute for imported coal.
4)Banks/FIs have to advance short term debt to discoms for
financing losses.
A.
1 and 2 only
B.
1,2,3 only
C.
3 and 4 only
D.
1 and 3 only
Explanation:
Ujwal DISCOM Assurance Yojana (UDAY) 1. States shall take over 75 per cent of
discom debt outstanding as of September 2015. 2. Reduction of Aggregate Technical
& Commercial (AT&C) losses to 15 per cent by 2018-19. 3. Reduction in difference
between average cost of supply and average revenue realized (ARR) by 2018-19. 4.
Increased supply of domestic coal to substitute for imported coal. 5. States shall take
over future losses of discoms in a phased manner. 6. Banks/FIs not to advance short
term debt to discoms for financing losses
Q.39) Consider the following statements:-
1)The recent growth revival in India is predominantly export-driven
2)Private consumption has strengthened in the current year in India.
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Which of the above statement/s are correct
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
The recent growth revival in India ispredominantly consumption-driven
Q.40) Consider the following statements:-
1)Indian economy never had an year of net export surplus since
independence.
2)There is trend emerging in household expenditure where it is
observed that there is a decline of household
investment in construction activities and realignment of household
expenditures in favour of consumption
Which of the above statement/s are correct
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Since 1950-51, India has had only seven years of marginal net export (exports minus
imports of goods and nonfactor services) surpluses; and never since 1993-94
Q.41) With reference to Marginal Cost of Funds based leading rate (MCLR),
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which of the following statement(s) is/are correct?
1. It takes into account the Negative carry cost on CRR.
2. It is to be reviewed every month
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.42) With reference to Economic Survey 2015-16, which of the following
statement(s) is/are correct?
1. Small saving schemes have hindered the transmission of
monetary policy in the recent years.
2. The return on small savings scheme has been higher than
bank deposits.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.43) With reference to Credit Impulse, which of the following statements
is/are correct?
1. The concept is developed by Deutsche Bank economist
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Michael Briggs (2008).
2. Investment increases with increase in credit impulse.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.44) With reference to Economic Survey 2015-16, bank credit growth is
declining because which of the following reasons?
1. Twin Balance Sheet syndrome.
2. Indian companies going for ECB and Bond Market.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.45) With reference to Liberal Remittance Scheme, which of the following
statements is/are correct?
1. Indian residents can send $2.5 lakh per year per person
abroad.
2. It is applicable to both for current as well as capital account
transactions.
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Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.46) With reference to Economic Survey 2015-16, high real interest rate
can have which of the following effects on deposits?
1. Substitution effect.
2. Wealth effect.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.47) With reference to Economic Survey 2015-16, which of the following
statements is/are correct?
1. Both Deposit and Credit growth are declining since 2014.
2. Generally when the real interest rate decreases then the
deposit growth rate increases and vice versa, however since
2014 it is not happening so.
Select the answer using the codes given below
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A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.48) With reference to Bank Rate, which of the following statements
is/are correct?
1. It is the rate at which banks borrow from RBI without any
collateral.
2. Bank rate must always be equal to the Marginal Standing
Facility.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.49) With reference to Bank Board Bureau, which of the following
statements is/are correct?
1. Financial Services Secretary will be one of its members.
2. Governor of RBI will be the ex-officio chairman.
Select the answer using the codes given below
A.
1 only
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B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.50) With reference to Insolvency and Bankruptcy Code, 2015, which of
the following statements is/are correct?
1. Insolvency and Bankruptcy Board will consist of 10 members
solely from RBI.
2. Under this code settlement needs to be done within 180 days.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.51) With reference to SARFAESI ACT, 2002, which of the following
statements is/are correct?
1. It is not applicable to Agriculture loan.
2. Only banks and housing finance-NBFC can do the recovery
under this act.
Select the answer using the codes given below
A.
1 only
B.
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2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.52) Which of the following corrective actions are suggested by
Economic Survey 2015-16 to deal with the NPAs of the Public Sector
Banks?
1. Rectification
2. Recovery
3. Restructuring
Select the correct answer
A.
1 only
B.
1 and 3 only
C.
2 and 3 only
D.
All of the above
Explanation:
Q.53) Bollgard technology is associated with which of the following crops?
A.
Wheat
B.
Rice
C.
Cotton
D.
None of the above
Explanation:
Q.54) The Delhi-Mumbai Industrial Corridor will pass through which of the
following states
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1. Uttar Pradesh
2. Rajasthan
3. Haryana
4. Gujarat
Select the correct answer
A.
1 only
B.
1 and 3 only
C.
2 and 4 only
D.
All of the above
Explanation:
Q.55) With reference to Nilgai, which of the following statements is/are
correct?
1. The nilgai is indigenous to the Indian subcontinent.
2. The nilgai is categorised as Least Concern by the IUCN.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.56) With reference to Global Slavery Index 2016, which of the following
statements is/are correct?
1. It is released by Australia based human right group, Walk Free
Foundation.
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2. India has the distinction of having the highest number of
people in the world trapped in modern slavery.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.57) With reference to CERN, which of the following statements is/are
correct?
1. It is the world’s largest body of experts in nuclear and
particle physics, where scientists and engineers are probing the
fundamental structure of universe by using the most sophisticated
scientific instruments and advanced systems.
2. CERN is the birthplace of “www” (World Wide Web).
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.58) . With reference to Blood groups, which of the following statements
is/are correct?
1. The main reason behind the difference in blood of human is
the glycol-protein which is found in RBC called antigen.
2. Apart from blood groups – O, A, B and AB, there is a special
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type of blood group (hh).
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.59) Which of the following are the parts of core industries used to
calculate the IIP?
1. Natural Gas
2. Refinery Products
3. Cement
4. Steel
Select the correct answer
A.
1 only
B.
1 and 3 only
C.
2 and 4 only
D.
All of the above
Explanation:
Q.60) Global Burden on Food borne disease report is published by which
of the following agencies?
A.
FAO
B.
IMF
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C.
WHO
D.
None of the above
Explanation:
Q.61) With reference to Clean Energy Ministerial (CEM), which of the
following statements is/are correct?
1. It is a high-level global forum to share lessons learnt and best
practices, and to encourage the transition to a global clean
energy economy.
2. CEM is the initiative of the India.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Explanation: • Clean Energy Ministerial (CEM) is a high-level global forum to share
lessons learnt and best practices, and to encourage the transition to a global clean
energy economy. Initiatives are based on areas of common interest among
participating Governments and other stakeholders. • CEM is the initiative of the USA.
Presently, 23 countries are members of CEM. There are 13 initiatives under CEM
covering energy efficiency, clean energy supply and cross cutting areas. • Since its
launch in 2010, the Clean Energy Ministerial (CEM) has come a long way. Its various
initiatives were instrumental in leading significant collaborative work amongst
members in context of clean energy supply, demand side management and relevant
cross cutting issues. • During the 7thClean Energy Ministerial the Minister for Science
& Technology and Earth Sciences will also launch the Global Cooling Challenge.
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Q.62) With reference to Philae, which of the following statements is/are
correct?
1. It is a robotic European Space Agency lander.
2. It accompanied the Rosetta spacecraft until it landed on
comet 67P/Churyumov–Gerasimenko.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.63) With reference to Dawn, which of the following statements is/are
correct?
1. It is a space probe launched by European Space Agency.
2. It was launched with the mission of studying two of the
three known protoplanets of the asteroid belt, Vesta and Ceres.
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Explanation: Dawn is a space probe launched by NASA in September 2007 with the
mission of studying two of the three known protoplanets of the asteroid belt, Vesta
and Ceres. It is currently in orbit about its second target, the dwarf planet Ceres.
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Q.64) With reference to The Hague Code of Conduct, which of the
following statements is/are correct?
1. It is a global ballistic missile proliferation regime established
in 2002.
2. It is a voluntary legally non-binding multilateral body
Select the answer using the codes given below
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Explanation: About HCoC: HCoC is a global ballistic missile proliferation regime
established in 2002. It is a voluntary legally non-binding multilateral body aimed at
preventing the spread of ballistic missiles that can deliver weapons of mass
destruction. • It is the only multilateral code in the area of disarmament which has
been adopted over the last years. It is the only normative instrument to verify the
spread of ballistic missiles. • The HCOC does not ban ballistic missiles, but it does call
for restraint in their production, testing, and export. Presently, there are 137
signatories. • The Code is meant to supplement the Missile Technology Control
Regime (MTCR) but its membership is not restricted. Under the Code, States make
politically binding commitments to curb the proliferation of WMD-capable ballistic
missiles and to exercise maximum restraint in developing, testing, and deploying
such missiles. • Given the similarities between the technologies used in ballistic
missiles and civilian rockets, the Code also introduces transparency measures such as
annual declarations and pre-launch notifications regarding ballistic missile and space
launch programs. • Austria is the administrative Central Contact of the Code,
coordinating the information exchange under HCOC.
Q.65) Universal Health Coverage (UHC) index is published by which of the
following agencies?
A.
World Economic Forum
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B.
IMF
C.
World Bank
D.
None of the above
Explanation:
Explanation: The Universal Health Coverage (UHC) index has been developed by the
World Bank to measure the progress made in health sectors in select countries of the
World. India ranks 143 among 190 countries in terms of per capita expenditure on
health ($146 PPP in 2011). It has 157th position according to per capita government
spending on health which is just about $44 PPP. India’s performance on the indicator
on treatment of diarrhoea needs improvement in terms of enhancing the coverage.
The impoverishment indicator reflects the financial risk protection coverage, with a
higher percentage reflecting better coverage.
Q.66) Consider the following statements with reference to green
revolution.
1. India had surpassed USA in wheat production.
2. India had surpassed China in productivity of wheat and rice.
3. India’s average yield is higher than the world average.
Select the correct option using the codes given below.
A.
1 only
B.
2 and 3 only
C.
1 and 3 only
D.
1, 2 and 3
Explanation:
Q.67) Consider the following statements and find out the correct one.
1. The social return in case of paddy is higher than the private
return.
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2. The private return in case of pulses is higher than the social
return
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
The returns on growing wheat, sugarcane or paddy, taking account of the negative
externalities from using chemical fertiliser (soil depletion and health), water (falling
water tables), and from burning crops (adverse health consequences) is referred as
social returns of production which is very low in case of paddy but the private return
is higher as it considers only yield which do not consider negative externalities. But
the social returns to pulse production is higher than the private returns, because it
not only uses less water and fertiliser but fixes atmospheric nitrogen naturally and
helps keep the soil porous and well aerated because of its deep and extensive root
systems. These positive social benefits should be incorporated into MSP estimates
Q.68) Which of the following departments is/are not under ministry of
finance?
1. Department of economic affairs.
2. Department of expenditure
3. Department of revenue
4. Department of financial services
5. Department of disinvestment
Select the correct answer using the code given below.
A.
3 only
B.
3 and 5 only
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C.
3, 4 and 5 only
D.
None of the above
Explanation:
Q.69) Consider the following statements
1. Effective Revenue Deficit, a refined version of Revenue Deficit
captures the shortfall in current receipt over current
expenditure.
2. Effective Revenue Deficit is equal to the difference between
the Revenue Deficit and grants given for the creation of
capital asset.
Select the correct answer using the code given below
A.
1 only.
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.70) Which of the following is not considered as non-debt creating
capital asset?
1. Foreign direct investment
2. Borrowing from RBI
3. External assistance
4. Borrowing from IMF
Select the correct answer using the codes given below.
A.
1 and 4 only.
B.
1, 2 and 4 only
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C.
1,2,3 only
D.
1,2,3,4
Explanation:
Q.71) Which of the following was not a part of National telecom policy,
2012?
1. All India mobile number portability.
2. National optical fiber network
3. Money will be contributed by the spectrum winning
companies to create universal service obligation fund for rural
and Naxal areas
A.
1 only.
B.
1 and 3 only
C.
2 and 3 only
D.
1, 2 and 3.
Explanation:
Q.72) The Trans-Atlantic trade and Investment Partnership is an example
of:-
A.
FTA
B.
PTA
C.
Multilateral trade Agreement
D.
Common Market
Explanation:
Q.73) Consider the following statements.
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1. Micro irrigation practices increases the requirement of
fertilizers.
2. All the three existing earlier irrigation schemes – the
Accelerated Irrigation Benefit Programme (AIBP), Integrated
Watershed Management Programme (IWMP) and On Farm
Water Management (OFWM) are merged into the Prime
Minister’s Krishi Sinchayi Yojana (PMKSY)
Select the correct answer using the code given below.
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
. Micro irrigation practices decreases the requirement of fertilizers
Q.74) Consider the following statements and find out the correct one.
A.
Currently India's share is 2% of world exports
B.
It has a target to reach 3.5 % by 2020.
C.
Both of the above
D.
None of the above
Explanation:
Q.75) Baltic Dry Index is associated with
A.
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40
Cost of transportation of raw material by sea.
B.
Transportation of raw material through Baltic Sea
C.
The negative externalities associated with shipping.
D.
None of the above.
Explanation:
the Baltic Dry Index (BDI) is an economic indicator issued daily by the London-based
Baltic Exchange. Not restricted to Baltic Sea countries, the index provides "an
assessment of the price of moving the major raw materials by sea.
Q.76) With reference to PRASAD consider the following statements.
1. It is an initiative under the ministry of urban development.
2. It will be funded equally by both center and state.
3. It will be executed by SPVs, PWD, NGOs etc.
Select the correct option using the codes given below.
A.
1 only
B.
3 only
C.
1 and 2 only
D.
1,2 and 3
Explanation:
It is an initiative under the ministry of tourism. Funding- 100% CSS
Q.77) With reference to development of industrial corridors consider the
following.
1. Amritsar- Kolkata : Cental government
2. Delhi- Mumbai: Japan
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3. Mumbai- Bangalore : Britain
4. Banglore- Chennai : Britain
Select the correct answer using the code given below.
A.
1 and 4 only
B.
1, 2 and 3 only
C.
1, 2 and 4 only
D.
1, 2, 3 and 4
Explanation:
Q.78) Madrid protocol deals with which of the following?
A.
Foreign trade of Narcotics
B.
IPR protection
C.
Funding for infrastructure development.
D.
Multilateral trade agreement.
Explanation:
Q.79) A country is said to be in debt trap if
A.
It has to abide by the conditions imposed by the IMF.
B.
It has to borrow to make interest payment.
C.
It has been refused loans by creditors.
D.
When declared so by IMF by considering its junk status.
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Explanation:
Q.80) Which of the following are the objectives of Commission of
Agricultural prices?
1. To stabilize agricultural prices
2. To ensure meaningful real income level to the farmers.
3. To protect the interest of the consumers by providing
essential agricultural commodities at reasonable rates
through public distribution system
4. To ensure maximum price for the farmers
Select the correct answer using the code given below.
A.
1, 2 and 3 only
B.
1, 2 and 4 only
C.
1, 3 and 4 only
D.
2, 3 and 4 only
Explanation:
Q.81) The price of any currency in international market is decided by the
1. IMF
2. Demand for goods and services provided for the by the
country concerned.
3. Stability of the government of the concerned country.
4. Economic potential of the country
Select the correct answer using the codes given below
A.
1, 2 only
B.
2 and 4 only
C.
3 and 4 only
D.
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43
2, 3 and 4 only
Explanation:
Q.82) Consider the following statements.
1. Metals and Minerals Trading Corporation of India, is one of
the two highest earners of foreign exchange for India.
2. It is not involved in any import activities.
3. It is the largest international trading company of India
Select the correct answer using the codes given below.
A.
1 only
B.
1 and 3 only
C.
2 and 3 only
D.
1, 2 and 3
Explanation:
MMTC also imports important commodities such as ferrous and nonferrous metals
for industry, and agricultural fertilizers.
Q.83) Most favoured nation clause under WTO implies
A.
Most favour to some countries
B.
Most favour to all countries
C.
No favour to some countries
D.
No particualr favour to any country
Explanation:
Most-favoured-nation (MFN): treating other people equally - Under the WTO
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44
agreements, countries cannot normally discriminate between their trading partners.
Grant someone a special favour (such as a lower customs duty rate for one of their
products) and you have to do the same for all other WTO members.
Q.84) Assertion(A)- Currency Devaluation will lead to improvement in
balance of trade.
Reason(B)- Devaluation will lead to increase in prices of export
A.
Both A and B are individually true and B is the correct explanation
of A.
B.
Both A and B are individually true but B is not the correct
explanation of A.
C.
A is true but B is false.
D.
A is false but B is true
Explanation:
Q.85) In the context of Indian economy, which of the following is/are
purposes of ‘statutory Reserve Requirement’?
1. To enable the central bank to control the amount of
advances the banks can create.
2. To make the peoples deposit safe and liquid.
3. To prevent the commercial banks from making excessive
profits.
4. To force the banks to have sufficient vault cash to meet their
day-to-day requirement.
Select the correct answer using the codes given below.
A.
1 only
B.
1 and 2 only
C.
1, 2 and 4 only
D.
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1, 2, 3 and 4 only
Explanation:
Q.86) Assertion- India is having very less agricultural productivity.
Reason- Disguised employment is present in India
A.
Both A and B are individually true and B is the correct explanation
of A.
B.
Both A and B are individually true but B is not the correct
explanation of A.
C.
A is true but B is false.
D.
A is false but B is true
Explanation:
Agricultural productivity is less in India due to lack of mechanization and inadequate
adaptation of advanced methods of agriculture not due to disguised employment
Q.87) Which of the following is true about Laffer curve?
A.
It is the relationship between unemployment and growth rate of
GDP of the country.
B.
It is the relationship between the Inflation and the trend in
changes of labour pattern
C.
The Laffer curve shows the relationship between tax rates and tax
revenue collected by governments
D.
None of the above.
Explanation:
The Laffer curve, invented by Arthur Laffer, shows the relationship between tax rates
and tax revenue collected by governments.
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The curve suggests that, as taxes increase from low levels, tax revenue collected by
the government also increases. It also shows that tax rates increasing after a certain
point (T*) would cause people not to work as hard or not at all, thereby reducing tax
revenue. Eventually, if tax rates reached 100% (the far right of the curve), then all
people would choose not to work because everything they earned would go to the
government.
Q.88) If there is a significant fall in Baltic dry Index for a continued period
of time , which of the following inferences can be true ?
A.
The world economy will soon face recession
B.
The world economy is growing
C.
The European countries only are facing recession
D.
The European market has the strongest demand with respect to
the world.
Explanation:
Q.89) Which of the following is/are part of National Sample survey Office
(NSSO)?
1. Survey Design and Research Division (SDRD)
2. Field Operations Division (FOD)
3. Economic analysis Division (DPD)
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4. Co-ordination and Publication Division (CPD)
Select the correct answer using the codes given below
A.
1 and 4 only.
B.
2 and 3 only
C.
1, 2 and 4 only
D.
1, 2, 3 and 4.
Explanation:
Q.90) Amortisation refers to :-
A.
Payment of a loan by installments
B.
It is a form of arbitration between service provider and consumer
C.
It is theory that deals with the paradox of economic fundamentals
D.
It refers to the concept where economic bubbles and recession
are byproducts of capitalism
Explanation:
Q.91) Antitrust refers to :-
A.
It is a government policy for dealing with monopoly
B.
It is a government policy for dealing with dumping
C.
It is general trend observed between competitiors
D.
It is an agreement between the public and private sector
companies
Explanation:
Q.92) Consider the following statements :-
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1)Hawala is an ancient system of moving money based on trust
2) It predates the banking practices.
3)In contemporary times it is usually associated with the Middle East
region
4)In Hawala , the money movement is physical
Which of the above statement/s are true ?
A.
1,2,3 only
B.
1,2,3,4
C.
1 and 3 only
D.
2 and 4 only
Explanation:
Hawala An ancient system of moving money based on trust. It predates western bank
practices. Although it is now more associated with the Middle East, a version of
hawala existed in China in the second half of the Tang dynasty (618-907), known as
fei qian, or flying money. In hawala, no money moves physically between locations;
nowadays it is transferred by means of a telephone call or fax between dealers in
different countries. No legal contracts are involved, and recipients are given only a
code number or simple token, such as a low-value banknote torn in half, to prove
that money is due. Over time, transactions in opposite directions cancel each other
out, so physical movement is minimised. Trust is the only capital that the dealers
have. With it, the users of hawala have a worldwide money-transmission service that
is cheap, fast and free of bureaucracy.From a government's point of view, however,
informal money networks are threatening, since they lie outside official channels that
are regulated and taxed. They fear they are used by criminals, including terrorists.
Although this is probably true, by far the main users of hawala networks are overseas
workers, who do not trust official money transfer methods or cannot afford them,
remitting earnings to their families.
Q.93) Hedge or Hedging in economic terms refers to :-
A.
Reducing the risks by risk diversification
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B.
Investing in bigger risk as it pays better returns
C.
Investment in smaller risks to be recession proof
D.
None of the above
Explanation:
Q.94) Herfindahl-Hirschman index refers to :-
A.
It is an warning signal of Monopoly
B.
It is an warning signal of recession
C.
It is an index of structural weaknesses of a country
D.
It is an index of vulnerability of country's economy to
environmental fluctuations and hazards
Explanation:
Q.95) Consider the following statements:-
1)Human capital is what enables people to earn a living
2)Human capital can be increased by investing in education, training
and health care.
Which of the above statements are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.96) Consider the following statements :-
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1)Laissez-Faire Is "Let-It-Be Economics": The Belief That An Economy
Functions Best When There Is No Interference By Government
2)Keynesian Is A Branch Of Economics, Based, Often Loosely, On
The Ideas Of Keynes, Characterised By A Belief In Active Government
And Suspicion Of Market Outcomes.
Which of the above statements are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.97) Kleptocracy refers to :-
A.
Red Tapism by bureacucracy
B.
Bureaucracy induced policy paralysis leading to collapse of
economy
C.
Corrupt, Thieving Government, In Which The Politicians And
Bureaucrats In Charge Use The Powers Of The State To Feather
Their Own Nests
D.
None of the above
Explanation:
Q.98) Consider the following statements:-
1)Mercantilism is an economic theory where the Mercantilists fear
that MONEY would become too scarce to sustain high levels of
OUTPUT and employment; their favoured solution was cheap money
(low INTEREST rates)
2)Monetarism school of economic thought believes that if one
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51
controls the MONEY SUPPLY, the rest of the economy will take care
of itself.
Which of the above statements are correct ?
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation:
Q.99) If the central bank doubles money supply :-
A.
The prices of commodities will rise
B.
The prices of commodities will decline
C.
The prices of commodities will remain unchanged
D.
None of the above
Explanation:
Q.100) Consider the following statements :-
1)Money illusion refers to a concept when people are misled by
INFLATION into thinking that they are getting richer, when in fact
the value of MONEY is declining.
2)A small amount of inflation may not be a bad thing and could
even be beneficial, helping to “grease the wheels” of the economy
and it is usually desired.
Which of the above statements are correct ?
A.
1 only
B.
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52
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
Explanation: