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VISION IAS

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Test Booklet Series

TEST BOOKLET

GENERAL STUDIES (P) 2017 Test (2111)


C
Time Allowed: Two Hours Maximum Marks: 200

INSTRUCTIONS

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1. Budget deficit can be reduced by: 4. In Economics, what does the term Usual
1. decreasing the direct taxes Principal Status indicate?
2. increasing expenditure on subsidies and (a) Comparison of GDP of two different
welfare programmes nations
(b) Employment status of a worker
3. implementation of GST
(c) Principal amount invested by a person in
Select the correct answer using the code
the bank on a particular interest
given below.
(d) Status of Non-performing assets
(a) 1 and 2 only
(b) 2 and 3 only 5. Which of the following factors is/are
(c) 1 and 3 only responsible for informalisation of labour
(d) 3 only force?
1. Pressure to cut cost of production
2. The ratio of total additional planned savings 2. Rigid labour laws
3. Demand - supply imbalance of labour
in an economy to the total additional income
force
of the economy is known as:
Select the correct answer using the code
(a) Marginal propensity to consume (MPC)
given below.
(b) Savings rate (a) 1 only
(c) Marginal propensity to save (MPS) (b) 1 and 2 only
(d) Consumption rate (c) 2 and 3 only
(d) 1, 2 and 3
3. Consider the following statements with
reference to Cash Reserve Ratio (CRR) 6. The recent fall in international crude oil
price has the highest impact on which of the
and Statutory Liquidity Ratio (SLR):
following indicators?
1. CRR is the fraction of the total Net
(a) Wholesale Price Index (WPI)
Demand and Time Liabilities maintained
(b) Consumer Price Index (CPI)
by bank with itself in form of cash
(c) Core inflation
deposits. (d) Index of Industrial Production (IIP)
2. SLR is the fraction of the total Net
Demand and Time Liabilities maintained 7. Consider the following statements:
by bank with RBI in form of specified 1. Deflation is the persistent fall in the
liquid assets. general price level of goods and
3. CRR and SLR are part of Liquidity services.
2. Disinflation is a decrease in the rate of
Adjustment Facility (LAF).
inflation.
Which of the statements given above is/are
Which of the statements given above is/are
correct?
correct?
(a) 1 and 2 only (a) 1 only
(b) 3 only (b) 2 only
(c) 1, 2 and 3 (c) Both 1 and 2
(d) None (d) Neither 1 and 2

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8. Which among the following is/are the 11. Which of the following programmes aim at
qualitative tools to control credit creation by improving the food and nutritional status of
RBI?
the poor?
1. Open Market Operations
1. Public Distribution System
2. Repo Rate
2. Integrated Child Development Scheme
3. Margin Requirements
4. Credit Rationing Policy 3. Midday Meal Scheme
Select the correct answer using the code Select the correct answer using the code
given below: given below.
(a) 1 and 2 only
(a) 1 and 2 only
(b) 3 only
(b) 2 and 3 only
(c) 1, 2 and 3 only
(d) 3 and 4 only (c) 1 and 3 only
(d) 1, 2 and 3
9. Which of the following functions can be
performed by a Payment bank? 12. In an economy, head count ratio is the
1. Opening current deposit accounts
measure of:
2. Opening Demand deposit accounts
(a) Unemployment
3. Accept NRI deposits
4. Distribution of insurances. (b) Poverty

5. Utility bill payments (c) Literacy


Select the correct answer using the code (d) Malnutrition
given below.
(a) 1, 2 and 3 only
13. With reference to Cess, consider the
(b) 1, 3 and 5 only
following statements:
(c) 2, 3, 4 and 5 only
(d) 1, 2, 4 and 5 only 1. Cess is earmarked for a particular
purpose only and cannot be used for any
10. Which of the following best describes 'Tax other purpose.
Expenditure'?
2. Proceeds of cess are distributed on the
(a) It is the expenditure incurred by the
recommendation of Finance
government during collection of tax.
Commission.
(b) It is the revenue forgone by the
government on account of exemptions Which of the statements given above is/are
on income and corporate tax. correct?
(c) It is the revenue forgone on account of (a) 1 only
exemptions on indirect taxes.
(b) 2 only
(d) It is the expenditure made by the
(c) Both 1 and 2
government from the income accrued
(d) Neither 1 nor 2
through taxes.
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14. Which of the following statements is/are 16. With reference to Gross National Product

correct regarding Currency Deposit Ratio (GNP), consider the following statements:
1. It represents the monetary value of all
(CDR)?
goods and services produced within a
1. It is the ratio of money held by the
nation's geographic borders over a
public in currency to that they hold in specified period of time.
bank deposits. 2. It is always greater than Gross domestic

2. There will be decrease in CDR during product.


Which of the statements given above is/are
festive season.
correct?
Select the correct answer using the code
(a) 1 only
given below. (b) 2 only
(a) 1 only (c) Both 1 and 2

(b) 2 only (d) Neither 1 nor 2

(c) Both 1 and 2


17. In Indian Economy, who are Marginal
(d) Neither 1 nor 2 Workers?
(a) Those workers who work less than 6
15. Consider the following statements regarding months in a year.
(b) Those workers who work over less than
Employment Elasticity of Growth:
1 hectare of land.
1. It is the percentage change in
(c) Those workers who use out-dated
employment of labour force in response technologies.
to percentage change in population (d) Those workers who have not worked
growth. anytime in the year.

2. Additional labour force can be suitably


18. Consider the following statements regarding
employed only when employment
'Substitutes' and 'Complementary' goods?
elasticity of growth is high. 1. Demand for a good moves in opposite
3. In India, employment elasticity has direction of the price of its
shown a declining trend in the past complementary goods.
2. Demand of a good usually moves in the
decade.
direction of the price of its substitutes.
Which of the statements given above is/are
Which of the statements given above is/are
correct? correct?
(a) 3 only (a) 1 only
(b) 1 and 2 only (b) 2 only
(c) Both 1 and 2
(c) 2 and 3 only
(d) Neither 1 nor 2
(d) 1, 2 and 3

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19. The Macro-Vulnerability Index (MVI) is 22. As per the law of demand, with all other
used for calculating the Macro-Economic
factors being constant, the demand of any
performance of the Country. Which of the
following factors are used to determine particular good depends on which of the

MVI? following factors?


1. Current Account Deficit
1. price of the good
2. Fiscal Deficit
3. Primary Deficit 2. price of other goods
4. Rate of Inflation 3. consumer preference
5. Exchange Rate
Select the correct answer from the code
Select the correct answer from the code
given below. given below.
(a) 2, 4 and 5 only (a) 1 only
(b) 3, 4 and 5 only
(b) 2 and 3 only
(c) 1, 2 and 4 only
(d) 1, 2, 4 and 5 only (c) 1 and 2 only

(d) 1, 2 and 3
20. Supply curve represents the relationship
between product price and quantity of
product that a seller is willing and able to 23. Money supply refers to the total stock of
supply. Shifting of supply curve rightward
money held by 'Public'. Which of the
would imply which of the following?
(a) Increase in profits following is/are part of the term public in

(b) Decrease in profits this context?


(c) Reduction in quantity supplied
1. Households
(d) Reduction in price of its goods
2. Non-Banking Financial Companies
21. The term "Escrow account" generally refers 3. Commercial Banks
to:
4. Reserves of IMF in Indian currency kept
(a) the money held in a third-party account
on behalf of transacting parties. with RBI
(b) the bank accounts that could be
Select the correct answer using the code
maintained without or with very low
given below.
minimum balance.
(c) the bank account on which no (a) 3 and 4 only
restrictions on the number of times
(b) 1, 2 and 3 only
deposit in cash/cheque can be made.
(d) the bank accounts for senior citizens and (c) 1, 2 and 4 only

disabled persons. (d) 1, 2, 3 and 4

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24. Consider the following pairs: 27. Which of the following constitutes the
Type of Example primary sector of the economy?
Unemployment 1. Fishing
1. Structural : Unemployment in
2. Animal Husbandry
Unemployment cycle industry
3. Mining
because people are
buying more cars 4. Forestry
2. Cyclical : Unemployment due Select the correct answer using the code
Unemployment to slowdown in given below.
economy (a) 1 and 2 only
3. Frictional : A person leaving his (b) 1, 3 and 4 only
Unemployment job to prepare for
(c) 3 and 4 only
civil services
(d) 1, 2, 3 and 4
Which of the pairs given above is/are
correctly matched?
(a) 1 and 2 only 28. Which among the following is/are included
(b) 2 and 3 only in the Priority sectors for lending by
(c) 3 only commercial banks?
(d) 1, 2 and 3 1. Housing
2. Education
25. Aggregate demand for final goods in an
3. Export Credit
economy is generated though which of the
following? 4. Renewable Energy
1. Consumption expenditure Select the correct answer using the code
2. Investment expenditure given below.
3. Government expenditure (a) 1, 2 and 4 only
Select the correct answer using the code (b) 1 and 3 only
given below.
(c) 2 and 4 only
(a) 1 and 2 only
(d) 1, 2, 3 and 4
(b) 2 and 3 only
(c) 1 only
(d) 1, 2 and 3 29. Microeconomics deals with which of the
following parameters?
26. Which of the following entities/institution 1. Behavior of consumers in the markets
can operate as Banking Correspondents? for different goods and services.
1. Retired bank employees
2. Employment and aggregate price level.
2. Post-Offices
3. The way prices and quantities of goods
3. NBFC-MFI
4. NBFC-ND and services are determined in market.
5. Retired Teachers Select the correct answer using the codes
Select the correct answer using the code given below.
given below. (a) 1 and 2 only
(a) 1 and 2 only (b) 1 and 3 only
(b) 2, 3 and 4 only
(c) 2 and 3 only
(c) 1, 3 and 5 only
(d) 1, 2 and 3
(d) 1, 2, 3, 4 and 5
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30. Arrange the following in decreasing order of 33. Which of the following best defines Tax
their contribution to the Gross Tax Revenue. buoyancy?
1. Corporation Tax (a) It is the ratio of growth in tax revenue to
2. Income Tax
growth in GDP.
3. Custom Duty
(b) It is the ratio of gross tax collected to the
Select the correct answer using the code
total public debt of the state.
given below.
(a) 1-2-3 (c) It is the ratio of gross tax collected by
(b) 2-3-1 the state to the percentage of GDP.
(c) 2-1-3 (d) It is the ratio of growth in tax revenue to
(d) 3-1-2 the growth in population.

31. Which of the following schemes


34. The government is planning to remove the
do not constitute a Collective Investment
distinction between plan and non-plan
Scheme (CIS)?
1. Co-operative Society expenditure from 2017-18. With regard to

2. Non-Banking Financial Companies the present non-plan expenditure, consider


3. Insurance Companies the following statements:
4. Chit Business 1. Salary Payments and Pensions are a part
Select the correct answer using the code of Non-plan expenditure.
given below.
2. The Non-Plan Expenditure is higher than
(a) 1 and 2 only
Plan Expenditure of the government.
(b) 2 and 3 only
3. Interest Payments forms the highest
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4 portion in Non-Plan Expenditure.
Which of the statements given above is/are
32. With reference to the value added method correct?
for national income accounting, consider the (a) 1 only
following statements:
(b) 1 and 2 only
1. Gross Value Added (GVA) at factor cost
(c) 2 and 3 only
does not include any taxes.
(d) 1, 2 and 3
2. GVA at basic prices excludes production
taxes and includes production subsidies
available on the commodity. 35. Which of the following is called as the
Which of the statement given above is/are National Income?
correct? (a) Gross National Product at Factor Cost
(a) 1 only (b) Gross National Product at Market Price
(b) 2 only
(c) Net National Product at Factor Cost
(c) Both 1 and 2
(d) Net National Product at Market Price
(d) Neither 1 nor 2

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36. Consider the following statements with 38. Which of the following is/are the

regard to depreciation: characteristics of recession?


1. General fall in demand
1. It refers to that portion of the capital
2. High inflation
goods which goes in maintenance and
3. Fall in employment rate
replacement of existing goods due to Select the correct answer using the code
wear and tear. given below.
2. It takes into account unexpected and (a) 1 and 2 only
(b) 1 and 3 only
sudden destruction caused due to natural
(c) 2 and 3 only
calamities.
(d) 1, 2 and 3
3. To obtain gross investment in an
economy, depreciation is subtracted 39. The Reserve Bank of India performs which
from the net investment. of the following functions?

Which of the statements given above is/are 1. Regulation and supervision of the non-
banking financial institutions.
correct?
2. Management of foreign exchange
(a) 1 and 2 only
reserves
(b) 2 and 3 only 3. Banker to banks
(c) 1 only 4. Banker to the Central and State

(d) 1 and 3 only Governments


Select the correct answer using the code
given below.
37. Which of the following problems is/are
(a) 1, 2 and 3 only
associated with the barter system of (b) 1, 2 and 4 only
exchange? (c) 3 and 4 only

1. It requires the double coincidence of (d) 1, 2, 3 and 4

wants.
40. Which of the following are part of the
2. It is difficult to use in large economies.
Revenue budget?
3. It is difficult to carry forward perishable 1. Income Tax
wealth under barter system. 2. Grants to states
Select the correct answer using the code 3. Interest on Government Securities
Select the correct answer using the code
given below.
given below.
(a) 1 and 2 only
(a) 1 and 2 only
(b) 2 only (b) 3 only
(c) 1 and 3 only (c) 2 and 3 only
(d) 1, 2 and 3 (d) 1, 2 and 3

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41. Which of the following are introduced in the 44. With reference to Minimum Alternate Tax
Parliament in the process of passing the
(MAT), consider the following statements:
budget?
1. Finance Bill 1. It is applied on those companies which
2. Appropriation Bill show zero or negligible income to avoid
3. Demand of Grants
tax.
4. Vote on Account
Select the correct answer using the code 2. It is only applicable to private
given below. companies and not on public companies.
(a) 1 and 2 only
3. It is applied on the book profits of the
(b) 1, 3 and 4 only
(c) 2, 3 and 4 only companies at the rate of 18.5%.
(d) 1, 2, 3 and 4 Which of the statements given above is/are

42. Consider the following statements with correct?


reference to relative and absolute poverty: (a) 1 and 2 only
1. Relative poverty is defined as the
(b) 1 and 3 only
condition under which one cannot afford
'the minimum provision needed to (c) 3 only
maintain health and working efficiency'. (d) 1, 2 and 3
2. Absolute poverty is the condition in
which people lack the minimum amount
of income needed in order to maintain 45. Consider the following statements with
the average standard of living in the reference to Consumer Price Index (CPI) and
society in which they live.
GDP Deflator:
Which of the statements given above is/are
correct? 1. GDP deflator includes all goods and
(a) 1 only
services produced in the country, while
(b) 2 only
(c) Both 1 and 2 CPI does not.
(d) Neither 1 nor 2 2. CPI includes imported goods, while
GDP deflator does not.
43. Which of the following are the ways to
reduce revenue deficit without creating 3. Weights assigned to each good is
liabilities? constant in CPI, while it changes in GDP
1. Printing more money by RBI
Deflator.
2. Low rate interest loans from World bank
3. Increasing direct taxes Which of the statements given above is/are
4. Rationalisation of Subsidies correct?
Select the correct answer using the code
given below. (a) 1 only
(a) 1, 3 and 4 only (b) 1 and 2 only
(b) 3 and 4 only
(c) 2 and 3 only
(c) 2, 3 and 4 only
(d) 1 and 2 only (d) 1, 2 and 3

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46. Which of the following are part of Capital 49. Consider the following statements with
account of the budget? regard to subsidies in India:
1. Salaries of government employees 1. Amongst various items, Petroleum
2. Recovery of loans by central subsidy is the highest.
government 2. The total subsidy bill as a proportion of
3. Investment in shares of PSUs GDP has been declining since 2012-13.
Select the correct answer using the code Which of the statements given above is/are
given below. correct?
(a) 1 and 2 only (a) 1 only
(b) 3 only (b) 2 only
(c) 2 and 3 only (c) Both 1 and 2
(d) 1, 2 and 3 (d) Neither 1 nor 2

47. Consider the following statements with 50. In the context of economy, sterilization by
regard to investment in an economy: RBI refers to:
1. It refers to the addition to the stock of (a) operations by RBI to neutralize effects
physical capital.
of excess inflow of foreign investments
2. 'Investment goods' are part of the
in the economy.
intermediate goods like raw materials.
(b) operations by RBI to neutralize the
Which of the statements given above is/are
effects of high non-performing assets on
correct?
the economy.
(a) 1 only
(c) operations by the RBI to neutralize the
(b) 2 only
effects of high fiscal deficit on the
(c) Both 1 and 2
economy.
(d) Neither 1 nor 2
(d) None of the above

48. With reference to Repo rate, consider the


51. Which among the following correctly
following statements:
describes the Chakravyuha challenge in
1. It is the rate at which the RBI borrows
Indian economy?
money from commercial banks.
(a) It refers to the problems faced by the
2. Both government securities and
firms in closing their operations.
corporate bonds can be used for
(b) It refers to the government's inability to
transactions under Repo rate.
control both fiscal and current account
Which of the statements given above is/are
deficit.
correct?
(c) It refers to the problems faced by the
(a) 1 only
public sector banks due to dual control
(b) 2 only
(c) Both 1 and 2 of RBI and finance ministry.

(d) Neither 1 nor 2 (d) None of the above

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52. Which of the following are the components 55. With reference to Capital Adequacy Ratio
of Fiscal deficit? (CAR), consider the following statements:
1. Government's net borrowing at home. 1. It is the ratio of banks capital to its risk-
weighted credit exposure (loans).
2. Government's borrowing from abroad
2. A bank with lower CAR is considered
3. External Commercial Borrowings of
safe.
private sector Which of the statements given above is/are
4. Government's borrowing from RBI correct?
Select the correct answer using the code (a) 1 only
given below. (b) 2 only
(a) 1 and 2 only (c) Both 1 and 2
(d) Neither 1 nor 2
(b) 1, 2 and 4 only
(c) 1, 3 and 4 only
56. Which of the following is/are correct
(d) 2 and 4 only regarding the High Powered Money?
1. It is the total liability of the central
53. Consider the following statements regarding monetary authority of the country.
Labour Force Participation Rates (LFPR): 2. It includes deposits of the Government
and commercial banks with central
1. It is obtained by dividing the number of
monetary authority.
persons in the labour force by total
Select the correct answer using the code
population. given below.
2. The LFPR for women is significantly (a) 1 only
lower than that for males in both rural (b) 2 only
and urban areas. (c) Both 1 and 2
Which of the statements given above is/are (d) Neither 1 nor 2

correct?
57. Which of the following persons can be
(a) 1 only
classified as a worker as per Indian census
(b) 2 only classification?
(c) Both 1 and 2 1. Women working as a part time worker in
(d) Neither 1 nor 2 a family enterprise without any wages
2. Women bringing woods from forest for
54. Which of the following is correct regarding cooking food for her household
3. 16 year old adolescent working in family
Giffen goods?
owned tea stall
(a) The demand of Giffen goods decreases
4. 70 year old man watering the
with an increase in their prices. community park without any
(b) The demand of Giffen goods increases remuneration
with an increase in their prices. Select the correct answer using the code
(c) The demand of Giffen goods does not given below.
(a) 2 and 3 only
change with a change in their prices.
(b) 1 and 3 only
(d) The demand of Giffen goods increases
(c) 1, 3 and 4 only
with a decrease in their prices. (d) 1, 2, 3 and 4
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58. The part of National Income which is 61. Which of the following is/are part of Non-
received by households is called as Personal tax revenue receipts?
Income. Which of the following components
1. Dividends paid by PSUs to government
of National Income are not included in
Personal Income? 2. License fee received by government
1. Undistributed profits of government 3. Disinvestment of shares of PSUs
enterprises Select the correct answer using the code
2. Corporate Tax
given below.
3. Net Interest Payments made by
households. (a) 2 only
Select the correct answer using the code (b) 1 and 3 only
given below. (c) 1 and 2 only
(a) 1 and 2 only
(d) 1, 2 and 3
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3 62. Which one of the following statement
regarding Factor of Production is correct?
59. Consider the following statements with
(a) It is the input that a firm uses in the
regard to Price Elasticity of Demand of a
good: production process.
1. It is the ratio of percentage change in (b) It is the output which is produced in the
the demand of a good to the percentage
production process.
change in its price.
(c) It is the additional input that is required
2. For an inelastic good the Price Elasticity
of Demand is less than 1. to achieve the maximum output.
Select the correct answer using the code (d) It is the ratio of the output to that of the
given below.
input of the production process.
(a) 1 only
(b) 2 only
(c) Both 1 and 2 63. Which among the following represents the
(d) Neither 1 nor 2 effective monetary policy transmission?
(a) Banks increasing the lending rate, when
60. In an economy a situation of liquidity trap is
characterised by which of the following? RBI reduces the Repo rate.
1. Low savings rate (b) Banks reducing the lending rate, when
2. High demand for bonds RBI reduces the Repo rate.
3. Expansionary monetary policy
(c) Banks increasing lending rate, when RBI
Select the correct answer using the code
given below. reduces the Reverse Repo rate.
(a) 1 and 2 only (d) Banks increasing the lending rate and
(b) 2 and 3 only deposit rates, when RBI reduces both
(c) 3 only
Repo and Reverse Repo rate.
(d) 1, 2 and 3
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64. Consider the following statements: 67. Which of the following taxes would be
1. According to Laffer curve, tax revenues impacted by the Goods and Services Tax
always increase with increase in tax rate. (GST) bill, recently passed by the
2. According to Philips curve, there exist government?
inverse relationship between rate of 1. Corporate tax
unemployment and rate of inflation. 2. Service Tax
3. Lorenz curve is a graph showing the 3. Octroi and Entry tax
degree of inequality in income in a given Select the correct answer using the codes
population or an economy. given below.
Which of the statements given above is/are (a) 1 only
correct? (b) 1 and 2 only
(a) 1 and 3 only (c) 2 and 3 only
(b) 2 only (d) 1, 2 and 3
(c) 2 and 3 only
(d) 1, 2 and 3 68. Which of the following can be considered as
legal tenders?
65. Which of the following indicator(s) helps in 1. Currency notes issued by the RBI
assessing the health of both services and 2. Coins issued by the Government
manufacturing sector? 3. Cheques issued by a private person
1. Wholesale Price Index Select the correct answer using the code
2. Purchasing Manager Index given below.
3. Index of Industrial Production (a) 1 and 2 only
Select the correct answer using the code (b) 2 only
given below. (c) 1 and 3 only
(a) 1 and 2 only (d) 1, 2 and 3
(b) 2 only
(c) 1 and 3 only 69. Consider the following statements:
(d) 1, 2 and 3 1. Headline inflation excludes those
commodities from its basket which are
66. Which of the following banks can be volatile in short-term.
classified as universal banks? 2. Core inflation is a correct measure of
1. Small Finance banks inflation in long term.
2. Payment banks 3. Consumer Price Index (CPI) is the
3. Non-Banking Financial companies measure of headline inflation in India.
Select the correct answer using the code Which of the following statements given
given below. above is/are correct?
(a) 1 only (a) 1 only
(b) 1 and 2 only (b) 1 and 2 only
(c) 1, 2 and 3 (c) 2 and 3 only
(d) None (d) 1, 2 and 3

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70. Which of the following policy statements are 73. Which of the following are the Direct taxes
mandated under Fiscal responsibility and in India?
Budget Management Act, 2003? 1. Estate Tax
1. Medium term fiscal policy statement 2. Security Transaction Tax
2. Fiscal policy strategy instrument 3. Capital Gains Tax
3. Macroeconomic framework statement 4. Professional Tax
4. Gender budgeting Select the correct answer using the code
Select the correct answer using the code given below.
given below. (a) 1 and 2 only
(a) 1 and 4 only (b) 1, 3 and 4 only
(b) 2, 3 and 4 only (c) 3 and 4 only
(c) 1, 2 and 3 only (d) 1, 2, 3 and 4
(d) 1 and 3 only

74. Consider the following factors:


71. In an economy, base effect refers to: 1. Increase in government expenditure
(a) the impact of rise of increased per capita 2. Rising population and household
income on direct tax revenue.
consumption
(b) the impact of rise in price level in the
3. Buying and selling of real estate in urban
previous year over the corresponding
areas
rise in price levels in current year.
4. Fluctuations in output and supply
(c) the impact on lending capacity of the
5. Increase in administered prices
banks due to slowdown in the economy.
Which of the above is/are attributed to the
(d) the impact on exchange rate due to lower
demand-pull factors of inflation?
growth in the economy.
(a) 1, 2 and 3 only
(b) 1, 3 and 5 only
72. Consider the following differences between
(c) 2, 3 and 4 only
Marginal Cost of Funds based Lending Rate
(d) 4 and 5 only
(MCLR) and Base Rate:
1. Unlike base rate calculation, Cash
75. Which of the following statements correctly
Reserve Ratio (CRR) cost is considered
explains Primary deficit?
in the calculation of MLCR.
(a) It is fiscal deficit minus grants given to
2. Unlike base rate calculation, Repo rate is
state for capital expenditure.
mandatory in the calculation of MCLR.
(b) It is revenue deficit minus revenue
Which of the statements given above is/are
expenditure.
correct?
(c) It is total revenue of government minus
(a) 1 only
total expenditure.
(b) 2 only
(c) Both 1 and 2 (d) It is fiscal deficit minus net interest

(d) Neither 1 nor 2 payments.

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76. With reference to Inflation Targeting, 79. Which of the following can be the sources of
consider the following statements: human capital formation?
1. investment in education
1. It indicates the primacy of price stability
2. migration
as the key objective of fiscal policy by 3. investment in health
the government. 4. job training
2. It aims to target wholesale price index. Select the correct answer using the code
given below.
3. It was recommended by Nachiket More
(a) 1, 2 and 3 only
Committee. (b) 3 and 4 only
Which of the statements given above is/are (c) 1, 2 and 4 only

correct? (d) 1, 2, 3 and 4

(a) 1 and 2 only


80. Which of the following is/are the likely
(b) 1 and 3 only impacts of salary hike on a market in
(c) 2 and 3 only equilibrium?
1. There will be higher demand for goods.
(d) None
2. Consumers will spend less on an inferior
good and shift to superior goods.
77. Which of the following is/are correct 3. Suppliers will increase supply owing to
regarding capital account of the budget? higher demand, with no impact on
equilibrium.
1. Capital receipt leads to increase in asset
Select the correct answer using the code
of government.
given below.
2. Capital expenditure leads to increase in (a) 1 only
liability of government. (b) 1 and 2 only
(c) 2 and 3 only
Select the correct answer using the code
(d) 1, 2 and 3
given below.
(a) 1 only 81. Consider the following statements with
(b) 2 only regard to proportional taxation:
1. The rate of taxation does not change as
(c) Both 1 and 2
the taxable amount increases or
(d) Neither 1 nor 2 decreases.
2. It makes consumer spending less
78. Universal Health Coverage Index has been sensitive to fluctuations in GDP.
Which of the statements given above is/are
developed by which among the following?
correct?
(a) World Health Organization (a) 1 only
(b) World Bank (b) 2 only
(c) United Nations Children's Fund (c) Both 1 and 2
(d) Neither 1 nor 2
(d) International Monetary Fund
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82. Which among the following employment are 85. Consider the following statements with
part of unorganised sector in India? respect to the worker population ratio in
1. Sweeper working in PWD department India:
on contract basis 1. The worker population ratio in urban
2. Household industry with 8 employees India is more than that in rural India.
3. Rickshaw puller 2. The worker population ratio of urban
4. Domestic servant women is greater than that of rural
Select the correct answer using the code women.
given below. Which of the statements given above is/are
correct?
(a) 1, 2 and 4 only
(a) 1 only
(b) 1 and 3 only
(b) 2 only
(c) 2, 3 and 4 only
(c) Both 1 and 2
(d) 1, 2, 3 and 4
(d) Neither 1 nor 2

83. With reference to marginal standing facility,


86. Which among the following are steps taken
consider the following statements:
by the Government of India to promote
1. It allows banks to borrow money from
financial inclusion?
the RBI over and above what is available 1. Promoting Basic savings bank deposit
to them through the Liquidity accounts (BSBDAs)
Adjustment Facility. 2. Business Correspondent-Information
2. It is a penal rate and is always kept and Communication Technology (BC-
above repo rate. ICT) transactions
3. Under it, banks can avail funds only by 3. Atal pension yojana
pledging government securities. 4. Pradhan Mantri Mudra Yojana
Which of the statements given above is/are Select the correct answer from the codes
correct? given below.
(a) 1 and 3 only (a) 1 only
(b) 1 only (b) 1 and 2 only
(c) 2 and 3 only (c) 1, 2 and 4 only
(d) 1, 2 and 3 (d) 1, 2, 3 and 4

84. Which of the following economic reforms 87. Which of the following inflation indices are
would help in curtailing 'unnatural inflation', released by Central Statistical Office (CSO)?
which arises due to supply side constraints? 1. CPI (Combined)
1. GST act 2. Wholesale Price Index (WPI)
3. Consumer Food Price Index (CFPI)
2. Model APMC act
4. CPI (Industrial Worker)
3. FDI in multibrand retail
Select the correct answer from the code
Select the correct answer using the codes
given below.
given below.
(a) 1 and 3 only
(a) 1 and 2 only
(b) 1, 3 and 4 only
(b) 2 and 3 only
(c) 1, 2 and 4 only
(c) 1 and 3 only
(d) 2 and 3 only
(d) 1, 2 and 3
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88. With reference to monetary aggregates M1 91. Consider the following statements with
and M2, also known as narrow money, regard to private and public goods:
consider the following statements: 1. Private goods are rivalrous in nature
1. M1 is the most liquid part of the money which means that its consumption by
supply. one individual prevents another
2. M2 is obtained by excluding Savings individual from consuming it.
with Post offices from M1. 2. Public goods are non-excludable in
Which of the statements given above is/are nature which means there is no feasible
correct? way of excluding anyone from enjoying
(a) 1 only the benefits of the good.
(b) 2 only Which of the statements given above is/are
(c) Both 1 and 2 correct?
(d) Neither 1 nor 2 (a) 1 only
(b) 2 only
89. Consider the following statements about the (c) Both 1 and 2
high inflationary pressure being experienced (d) Neither 1 nor 2
from the past decade in India:
1. It is both cyclical and structural in 92. Consider the following statements with
nature. reference to 'Economically Active
2. High global commodity prices have Population':
increased inflationary pressure on the 1. It is the population in the age group of
local markets. 15-59 years.
3. Improper fiscal policies have led to 2. It has increased in the last two decades
increase in the inflationary pressure. in India.
Which of the following statements given Which of the statements given above is/are
above is/are correct? correct?
(a) 1 only (a) 1 only
(b) 1 and 2 only (b) 2 only
(c) 2 and 3 only (c) Both 1 and 2
(d) 1, 2 and 3 (d) Neither 1 nor 2

90. Consider the following statements regarding 93. Which of the following can be the possible
Commodities transaction tax: benefits of greater financial inclusion?
1. It is a financial transaction tax levied on 1. Higher domestic savings
commodity derivatives exchanges 2. Enhanced investment
involving agricultural commodities. 3. Better delivery of welfare schemes
2. It is an indirect tax. 4. Greater penetration of financial services
Which of the statements given above is/are Select the correct answer using the code
correct? given below.
(a) 1 only (a) 1 and 2 only
(b) 2 only (b) 1, 3 and 4 only
(c) Both 1 and 2 (c) 3 and 4 only
(d) Neither 1 nor 2 (d) 1, 2, 3 and 4
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94. Which of the following are considered while 97. The official data on poverty released in India
calculating economic value of a country? is estimated on the basis of consumption
1. Consumer goods
expenditure data collected by
2. Capital goods
3. Intermediate goods (a) Office of Economic Advisor
Select the correct answer using the code (b) Labour Bureau
given below.
(c) National Sample Survey Organisation
(a) 1 only
(b) 1 and 2 only (NSSO)

(c) 2 and 3 only (d) Central Statistical Office (CSO)


(d) 1, 2 and 3

98. To finance its deficit, government prefers


95. Consider the following statements with
regard to the Gini Coefficient: borrowing from public over RBI. The main
1. It depicts the economic inequalities reason is
prevailing in the country.
(a) rate of interest charged by RBI is higher.
2. Its value ranges from 0 to 1, with 0
representing high inequality and 1 (b) government has to return the sum to RBI

representing that there is no income within a fixed period of time.


inequality in the country. (c) public borrowing does not affect the
Which of the above statement/statements
money supply in the market.
is/are correct?
(a) 1 only (d) this increases the sale of government
(b) 2 only bonds.
(c) Both 1 and 2
(d) Neither 1 nor 2
99. Which of the following statements is/are

96. Which of the following policies of correct regarding fiscal deficit?


government can lead to increase in inflation? 1. It leads to deflation in economy.
1. Greater number of social sector schemes
2. It leads to increase in primary deficit.
by government
2. Increase in Minimum Support Prices 3. It leads to crowding-out of private
3. Import of pulses at cheaper price investment
4. Accepting 7th pay commission's
Select the correct answer using the code
recommendations
Select the correct answer from the code given below.

given below. (a) 1 and 3 only


(a) 1 and 2 only (b) 2 only
(b) 2 and 3 only
(c) 2 and 3 only
(c) 1, 2 and 4 only
(d) 2, 3 and 4 only (d) 1, 2 and 3

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100. Which among the following correctly
describes skewflation in an economy?
(a) It refers to a situation of inflation
combined with a slow growth rate and a
relatively high unemployment rate.
(b) It refers to a sustained, across-the-board
price increase in the market.
(c) It refers a price rise in one or a small
group of commodities over a sustained
period of time alongwith decreasing
prices in others.
(d) None of the above

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