What is the percentage of the total workforce employed in Agriculture sector in India? About 64%.

Which of the following is not a financial institution? FICCI

In a developed economy the major share of employment originates in the: tertiary sector
The largest area covered by HYV (high yielding varieties) seeds is under: wheat
The open market operations refer to the sale and purchase by the RBI of foreign exchange, gold
and government securities
Barter System refers to a system where goods are exchanged against goods.
If two goods are complements, it means that a rise in the price of one commodity will induce a
fall in demand of the other commodity
The credit entry for net profit is on the credit side of: the capital account
Beyond a certain limit, a deficit financing will certainly lead to inflation.
Marginal revenue will be positive if the demand is greater than one
Indias share in the world tourism market is less than 1%.
Closing capital + drawings - profit equals: opening capital
A firm will shut down rather than carry on producing in the short run if total revenue is less than
total variable cost
Total revenue of a firm is maximum when marginal revenue becomes zero
Ceteris paribus means other things being equal
The per capita income has been low in India because: of population growth
The law of demand states that when price falls, demand increases
Currency drain is a phenomenon referred to when the holding of currency by foreigners in a
country goes up
Commercialisation of agriculture implies production of crops for sale.
Devaluation of currency leads to increase in domestic prices.
In which sector of the Indian economy is productivity the highest? Agriculture
The basic objectives of Indian planning are:
1. economic growth
2. self-reliance
3. employment generation
The agency estimating the national income of India is Central Statistical Organization
Which is the best description of fixed assets? Are of long-life and are not bought specifically for
resale
Movement along the same demand curve is known as Contraction of supply
When was the Family Planning Programme officially started in India? 1952
Development means economic growth plus social change
Turnover represents: the total volume of sales during the year
Quota is limit on quantity of imports.
The costs of putting goods into a saleable condition should be charged to: trading account
The Planning Commission is: an Advisory body
Real wages include accident compensation.
The First paper mill of the country was started in 1832. Where was it located? Sehramporein
West Bengal
Which of the following countries is the top lender country to India? Japan
Debenture holders of a company are its: creditors
Open Sky Policy means involving private agencies in air transport.
A shift to the left of a demand curve, could be due to a rise in the price of a complement
Which of the following would not tend to increase the population of a country? an increase in the
average age at marriage
India's oldest iron and steel plant is: TISCO at Jamshedpur
If an economy is in equilibrium at the point where plans to save and to invest are equal, then
government expenditure must be equal to government income
A Scheduled Bank is one which is included in the: II Schedule of Banking Regulation Act
NNP (Net National Product) or National Income is the money value of final goods and services
produced annually in the economy
The supply schedule for a commodity is usually assumed to be directly open to influence by all
the following, except the quantity demanded
The Narasimham Committee made recommendations to the Government on banking structure

Indian Railways earn the maximum revenue from: freight

A demand curve for a commodity is usually drawn on the assumption that factors influencing
demand other than price are held constant
Which of the following Mahatma Gandhi series of currency notes issued by the RBI has a drawing
of the 'Parliament House' depicted on it? Rs.50
In a capitalist economy, the pattern of output is determined by the demand and supply powers
In recent years the Indian economy has been characterized as a developing economy
Select from the following list the costs which are most likely to vary with the output of a car
manufacturer during a period of a year. The wages of the workers in the paint shop
Secular stagnation refers to decrease in the marginal rate of growth in successive period
A serious effort to tackle the problem of poverty began with: fourth plan
If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for Coke and
7-Up will decrease.
There is unlikely to be a gain from international trade if: one country can produce some goods
more efficiently but other goods less efficiently than other countries
If tea and coffee are substitutes, a reduction in the price of coffee will increase the sale of coffee.
The recent policy of disinvestment of equity capital of Public Sector Enterprises is mainly
intended to reduce the burden of budgetary support to them.
There was no independent development of industries in India during British, rule because of the:
preference of the rich to invest in land
The Sunrise Industry is one which is non-conventional and expected to grow rapidly.
A firm is said to be of optimum size when average total cost is at a minimum
National Income is the same as: Net national product at factor cost
The goals of monetary policy do not include Maximum tax revenue
The oldest stock exchange of India is: Bombay Stock Exchange
Coal is considered as a capital single use good.
Which one of the following Five-Year Plans of India was terminated by a Rolling Plan? Fifth FiveYear Plan
The National Debt consists of: the total financial liabilities of the government
Which Five-Year Plan commenced from 1st April, 1997? Ninth Five-Year Plan
In a joint-stock company, the ordinary shareholders do not have the right to appoint the sales
manager
When was the Reserve Bank of India nationalized? 1949
What is the targeted additional power generation capacity during the Ninth Plan period in order to
keep the shortage within manageable limits? 10, 000 MW
Gilt-edged market means: Market of Government securities
Other things being equal a decrease in demand can be caused by a rise in the price of the
commodity
India had a plan holiday: after the drought of 1966
The annual yield from which of the following Union Government taxes is the highest? Excise
duties
Which of the following groups suffer the most from inflation? Creditors
The highest savings in India are recorded by the Household Sector.
Development expenditure of the Central Government does not include: interest payments
Which of the following is not a cause of low productivity in Indian agriculture? cooperative farming
The most serious economic problems of India are: Poverty and unemployment
A consumer with a given income will obtain maximum utility when the marginal utility of each
commodity is in he same ratio to its price
Which of the following prints currency notes of the denomination of Rs.100? The Bank Note
Press, Dewas
In India, maximum number of workers is employed in: textile industry
The credit control operation is performed by Reserve Bank of India.
Who amongst the following launched a new scheme named as "Dhana Lakshmi?" Life Insurance
Corporation of India
The principle of diminishing marginal utility implies that the total utility derived from consumption
of a good changes less with increasing quantities of it

When was the decimal system of currency introduced in India? 1957

What do open market operations of the RBI mean? Trading in securities
The sum of the marginal propensity to consume and the marginal propensity to save must be
equal to one
In which of the following industries is the maximum number of women employed in India? Tea
Which of the following states ranks first in terms of the maximum number of agro-based
industries? Punjab
A tax which is paid by the person on whom the tax is incident is called a: direct tax
Balanced economic growth can be achieved only if: All the inter dependent sectors grow in
harmony
The principal source of revenue to the State Government in India is: Sales Tax
A consumers equilibrium choice or position is one at which his satisfaction is maximum
The statement "India is a rich country inhabited by poor people" means: country has rich, vast
resources but they are not properly exploited
The national income of a nation is the governments annual revenue, sum total of factor incomes
and surplus of public sector undertakings.
Convertibility of the rupee implies: freely permitting the conversion of rupee to other major
currencies and vice versa
A 45 supply curve represents unit elastic supply.
The elasticity of a straight-line demand curve may have varying values along its length
Price index numbers are designed to measure: changes in the cost or value of production
If the Indian is making a loss on passenger traffic, it should increase its prices. The suggested
remedy would only work if the demand for air travel had a price elasticity of zero
The situation in which total revenues equal cost, is known as break-even point.
What is the minimum calorie intake decided by the Planning Commission for rural and urban
areas, respectively? 2400 and 2100
It will pay a monopolist to cut the price of his product if marginal revenue is greater than
marginal cost
The effort of a fall in investment on income is normall greater than the fall in investment
Which one of the following is the largest mutual fund organization in India? Unit Trust of India
Which one of the following is not included as a main feature of the new economic policy for
development?Promotion of heavy and basic industries
. In our country, which of the following affects poverty line the most? Per capita income
Who is responsible for the collection and publication of monetary and financial information?
Reserve Bank of India
The slope of an indifference curve represents the marginal rate of substitution between two goods
Which part of separated UTI is under SEBI's regulation? UTI-II
Which is the best measure of economic growth of a country? GNP
All revenues received, loans raised and money received in repayment of loans by the Union
Government go into Consolidated Fund of India
Which of the following are concerned with the economic development of Third World countries?
IFC
The aim of a rational consumer in allocating his income is to maximize his total utility
Perfect competition is said to exist if each firm in the industry accepts the market price because
it has to
What is the main reason for occurrence of structural unemployment? Inflation
Five-Year Plans are finalised only after getting the approval of the National Development Council,
UTI has been divided into two parts UTI-I and UTI-II. Which part has been kept under the control
of the government? UTI-I
If the demand and supply schedules for a commodity both increase by an equal absolute amount,
the market price will tend to remain unchanged
Gandhian economy is based on the principle of Trusteeship.
The standard of living in a country is represented by its: per capita income
Of the following statements, which one best describes the consumption function? Consumption
increases as income does but not by as much, and the rate of increase in consumption gradually
slows down with increasing income

Which of the following is now a punishable offence by a Bank Account holder? If a cheque drawn
by him is dishonoured for insufficiency of funds in his account
Inflation is caused by: increase in money supply and decrease in production
Word Bull and Big are associated with which branch of commercial activity? Share Market
A public enterprise is distinguished from a private enterprise by whether it is owned by the
government
A decrease in net profits as a percentage of gross profits indicates that: costs are absorbing too
much of the income
Carriage inwards is charged to the trading account because: it is an expense connected with
buying goods
The sales journal is best described as: a list of credit sales
The term 'devaluation' means: Reducing the value of a currency in terms of another currency
Which of the following statements best explains the term contraband goods? Goods that are
forbidden, from export, import or even possession, by law.
Which of the following is not shared by the Centre and the States? Sales Tax
Costs which vary with output may be called overhead costs
The main argument advanced in favour of small scale and cottage industries in India is that: they
generate a large volume of employment
Functional unemployment occurs when: people frequently change their job
Working capital is measured by: current assets less current liabilities
A public enterprise is distinguished from a private enterprise by whether it: is owned by the
government
The descending order in which current assets should be shown in the balance sheet are: stock,
debtors, bank, cash
Which one of the following Five-Year Plans of India had growth with social justice and equity for
achieving its goals as the main focus? VI
The special paper required for printing of currency notes by the Security Presses in the country is
manufactured at: Hoshangabad
Sun Belt of USA is important for which one of the following industries? Food Processing
Agricultural income-tax is a source of revenue to State Government
Octroi is levied and collected by: local bodies
Expenditure on which of the following is not considered investment in the theory of income
determination? Stocks or shares in a joint-stock company
Of the following which are personal accounts?
(iii) debtors
(iv) creditors
Which of the following is not one of the three central problems of an economy? When to produce
The system of Budget was introduced in India during the viceroyalty of: Canning
MAT is a new tax introduced in the 1996-97 Budget. It relates to Minimum corporate tax for zero
tax companies.
Human capital means Skill capacity and ability possessed by the population
Planning in India as it is at present can be termed as Indicative Planning.
Which of the following represents the ratio of equity of the RRBs held by the Central
Government, the sponsoring banks and the concerned State Government respectively? 40 : 40 :
20
Ten rupee notes bear the signature of: Governor, Reserve Bank of India
What is the percentage of the total workforce employed in Agriculture sector in India? about 64%
The Duburi Thermal Power Plant Project approved by the Cabinet Committee on Foreign
Investment will be set up in which of the following States? Orissa
India has: Mixed economy
Which of the following could explain why the supply curve for a commodity slopes downwards?
Costs fall as production increases
When the price of a substitute of commodity X falls, the demand for X falls
Which of the following businesses would probably find it easiest to borrow money from complete
strangers? A public joint stock company
What is Laissez-faire? Non-interference of Government in economic affairs
Which bank gives long term loan to farmers? Land Development Bank

Protection means Restrictions imposed on import trade, Protection to home goods and No free
exchange of goods and services between two countries.
Which of the following is not a function of Reserve Bank of India? It is a foreign exchange
detector
A country generally resorts to devaluation of its currency to: convert deficit in her balance of
payments
In accounting terms, what accounts the closing stock? Closing stock + Net investment - Capital
losses.
The steel plants at Durgapur, Bhilai and Rourkela were established during the period of: Second
Five Year Plan
Division of Labour is limited by the number of workers
Which of the following is not a feature of the Indian economy? High rate of exports
Purchase of a tractor by a farmer is: fixed investment
Net profit is calculated in the: profit and loss account
The consumers surplus can be defined as difference between actual price and potential price
The philosophy of Laissez faire is identified with: Industrial State
Economies of large scale production exist because: all of the above can cause large scale
economies
Demand means willingness and ability of an individual to buy goods and services at a given price
and time
In its trade with the rest of the world a country will tend to specialize in the production of goods in
which: it has the greatest comparative advantage or least comparative disadvantage
Equilibrium income is that level at which the amount which society wishes to spend on
investment is equal to the amount of its income which it does not wish to spend on consumption
Customs duties, export duties, corporation taxes, taxes on capital value of assets (excluding
agricultural land of individuals and companies) are taxes and duties that accrue wholly to the
Union Government
Which State stands first in the length of roads in the country? Maharashtra
The marginal productivity theory of wages states that The demand for labour is determined by the
marginal physical product of labour multiplied by its marginal revenue
Disguised unemployment is the prominent feature of primary sector
Perfect market means there are many sellers and many buyers.
When too much money is chasing too few goods, the situation is known as inflation
Gross National Product (GNP) is the total domestic and foreign output claimed by residents of
the country.
In India, the Public Sector is most dominant in: organized term-lending financial institutions
Private Banks in India account for what share of the total banking sector? 8%
Which of the following is not the characteristic of the Indian economy? prevalence of high level of
technology
World Development Report is an annual publication of: International Bank of Reconstruction and
Developmen
The relation between price of a commodity and the demand for it is a positive relationship.
Which of the following is a selective Credit Control method? RBI directives