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TEST BOOKLET
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4. This Test Booklet contains 100 items (Questions). Each item is printed in English. Each item comprises four
responses (answers). You will select the response which you want to mark on the Answer Sheet. In case you
feel that there is more than one correct response with you consider the best. In any case, choose ONLY ONE
response for each item.
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6. All items carry equal marks. Attempt all items. Your total marks will depend only on the number of correct
responses marked by you in the answer sheet. For every incorrect response 1/3rd of the allotted marks will be
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8. After you have completed filling in all responses on the answer sheet and the examination has concluded, you
should hand over to Invigilator only the answer sheet. You are permitted to take away with you the Test
Booklet.
9. Sheet for rough work are appended in the Test Booklet at the end.
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
(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
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
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
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
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
11 www.visionias.in Vision IAS
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
12 www.visionias.in Vision IAS
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
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
16 www.visionias.in Vision IAS
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)