CPT Test

1. Privatisation in India has taken place in all of the cases except

a.CMC b.BALCO c.VSNL d.none of the above

2. ----------refers to the transfer of assets or services function from public to private

ownership.
a.globalisation b.privatisation
c.disinvestment d.liberalisation

3. EPCG stands for

a.export promotion capital goods b.expert programme for credit
generation
c.exchanged programme for consumer goods d.export promotion consumer goods

4. CENVAT stands for

a.common entity value added tax b.corporate entities value added tax
c.central value added tax d.none of the above

5. As a result of the foreign trade reforms

a.the number of import licenses has increased c.EPCG scheme has been
abolished.
b.only a few types of goods and services can now be exchanged freely.
d.the average tariff rates have been reduced.

6. DFEC stands for

a.direct foreign exchange control b.direct finance exchange control.
c.Duty free export credit d.duty free exchange credit.

7. All of the following statements except one are correct about the foreign trade
policy,2004-09.Identify the incorrect statement:
a.certain thrust areas like agriculture, handlooms ,handicrafts etc. have been
identified.
b.vishesh krishiupaj yojana has been started.
c.served from India scheme has been started.
d.the entry of FDI in India has been restricted.

8. FERA stands for

a.foreign export revaluation act. b.funds exchanged resources act.
c.finance and export regulation association. d.foreign exchanged regulation act.

9. The FRBMA,2003 emphasises on:

a.revenue-led fiscal consolidation. b.better expenditure outcomes.
c.rationalisation of tax regime. d.all the above

10.FEMA stands for

a.foreign exchange management act. b.funds exchanged management
act.
 c.finance enhancement monetary act. d.future exchanged management
act.

11.Fiscal policy means

a.policy relating to money and banking in a country.
b.policy relating to public revenue and public expenditure.
c.policy relating to non banking financial institutions.
d.none of the above
12.FIEO stands for
a.foreign import export organization b.federation of import export organization
c.forum of Indian export organization d.federation of Indian export organization

13.The unsustainable levels of government deficits in the late 80s can be attributed
to.
a.high levels of government expenditure. b.insufficient revenues.
c.poor returns on government investment d.all of the above.

14.WTO stands for

a.world trade organization b.world transport organization.
c.world tariff organization d.women teachers organization

15.-----------refers to relaxation of previous government restriction.

a.privatisation b.globalisation c.disinvestment d.liberalisation.

16.----------refers to disposal of public units in equity in the market.

a.globalisation b.privatisation c.disinvestment d.liberalisation

17. ----------means integrating the domestic economy with the world economy.
a.globalisation b.privatisation c.disinvestment d.liberalisation

18.The pre condition for privatization to be successful requires

a.liberalisation and de-regulation of the economy.
b.capital market should be sufficiently developed.
c.none of the above.
d.(a) and (b) both

19.Which of the following statement regarding privatization is correct?

a.privatisation is panacea for all economic problems.
b.privatisation always leads to attaining social and economic efficiency.
c.privatisation May result in lopsided development of industries in the country.
d.none of the above

20.Which of the following statement is correct?

a.the disinvesment programme has been successfully carried out in India
b.privatisation up to 100% has been carried out in all the PSUs in India
c.under strategic sale method of disinvestment ,the government sells a major
share to a strategic buyer .
d.none of the the above
21.Banks perform the function of
a.receiving deposits b.lending of money
c.agency services d.all the above

22.Who is the official “lender of the last resort” in India?

a.SBI b.PNB c. RBI d.OBC

23.The basic distinction between narrow & Broad money is the

a. treatment of post office deposit
b . treatment of time deposits of bank
c. treatment of savings deposits of bank
d. treatment of currency

24.M1 is the money stock in India refers to

a. post office saving deposits
b. total post office deposits
c. currency plus demand deposits plus other deposits with RBI
d. time deposits with bank

25.Commercial bank in India were nationalized in 1969 because

a. there was urban bias
b. agriculture sector was neglected
c. there are concentration of economic power
d. all of the above

26.Narrow money refers to

a. M1 b. M2 c. M3 d. M4

27.Which is a central bank of India

a. SBI b. PNB c. Oriental Bank Of commerce d. RBI
28._________Refrs to That position of total deposits of a commercial bank which it has
to kept with RBI in the form of cash reserve
a.CRR b. SLR c. BANK Rate d. REPO Rate

29. Broad money refers to :-

a. M1 b. M2 c. M3 d. M4

30.In order to control credit in the country the RBI May

a. Buy securities in the open market b. Sell securities in the market
C. Reduce CRR d. Reduce BANK Rate

31._________refers to that portion of total deposit of commercial bank which it has to

keep with itself in the form of liquid assets.
a.CRR b. SLR c. BANK Rate d. REPO Rate

32._________is the official minimum rate at which the central bank of country is
prepared
to rediscount the approved bills held by the bank.
a.CRR b. SLR c. BANK Rate d. REPO Rate
33.In order to encourage Investment in the country the RBI May
a. reduce CRR b. Increased CRR
c. Sale securities in open market d. increased bank rate

34.Who is a custodian of national reserve of International currency

a. SBI b.IDBI c. RBI d. EXIM Bank

35.In order to discourage the investment in the economy the RBI May
a. Increased bank rate b. Decreased bank rate
b. buy securities in the market d. decreased CRR

36.________controls affects indiscriminately all the sectors of economy .,

a. Selective credit b. Quantitative margin requirement
c. Margin requirements d. none of the above

37.Which in not qualitative measure of credit control

a. issue of directives b. direct action
c. consumer credit regulation d. Open market operation

38. Which is not a quantitative measure of credit

a. bank rate policy b.Open market operation
c. variable reserve requirements d. Credit rationing

39. Who is not a custodian of monetary reserve

a. RBI b. SBI c.Both a & b d. None of the above

40. RBI Act passed in the year of

a. 1934 b. 1935 c 1949 d.1965