Indian Economy 1

Civil Services Club

27 September 2009

Indian Economy

1. What is ‘Stagflation’?
(A) Inflation with growth
(B) Deflation with growth
(C) Inflation after deflations
(D) Inflation with depression

2. Which committee was constituted for reforms in tax-structure?
(A) Narsimham Committee
(B) Chelliah Committee
(C) Gadgil Committee
(D) Kelkar Committee

3. Narsimham Committee was related to—
(A) High Education Reforms
(B) Tax Structure Reforms
(C) Banking Structure Reforms
(D) Planning Implementation Reforms

4. One major proposal of New Industrial Policy (1991) was—
(A) NRIs will not be allowed for capital investment in India
(B) All types of industries have been made license free
(C) Import restrictions of technical know-how for one year
(D) Facility of direct foreign investment upto 51% in high priority industries

5. Which of the following committee is at present working on ‘future trading’ effect on retail and wholesale prices of agriculture products ?
(A) Tendulkar Committee
(B) Abhijit Sen Committee
(C) Rakesh Mohan Committee

6. What is ‘Super 301’ ?
(A) A name of modern computer
(B) A new variety of rice
(C) American trade law
(D) American treatment name for Aids

7. Plan expenditure in India is met by—
(A) Internal debt and other resources
(B) Assistance from Aid India Club
(C) Assistance from IMF
(D) Assistance from OECD countries

8. National Income in India is estimated by—
(A) Planning Commission
(B) Finance Commission
(C) Indian Statistical Institute
(D) Central Statistical Organization

9. What is a ‘Dumping’?
(A) exporting a good at a price lower than its price in the domestic market
(B) exporting a good at a price equal to its price in the domestic market
(C) Importing a good at a price lower than its price in the domestic market
(D)None of these

10. Scheduled Bank is that bank which is—
(A) Nationalised
(B) Not nationalised
(C) Based at foreign country
(D) Included in the second schedule of RBI

11. TRIPS—‘Trade Related Intellectual Property Rights’ and TRIMS–‘Trade Related Investment Measures’ are associated with—
(A) Preston Proposal
(B) Dunkel Proposal
(C) Chelliah Committee
(D) None of these

12. Which is true for Finance Commission?
(A) It is a quasi judicial body
(B) It is constituted under article 280 of the Constitution
(C) Dr. Vijay Kelkar is Chairman of 13th Finance Commission
(D) All of these

13. Which sector constitutes the maximum share in National Income of India?
(A) Primary
(B) Secondary
(C) Tertiary
(D) All the above have equal share

14. Which of the following is not helpful in controlling money supply?
(A) Free Market Policy
(B) CRR
(C) Bank Rate
(D) Change in margin requirement

15. Fiscal Deficit means—
(A) Excess of total expenditure over total receipts
(B)Excess of revenue expenditure over revenue receipts
(C)Excess of total expenditure over total receipts less borrowings
(D) Excess of total expenditure over total receipts less borrowings and interest payments

16. Dunkel Draft was—
(A) Associated with Uruguay round
(B) Related to atomic treaty among nations
(C) Related to Super 301
(D) Related to promoting drugs trade

17. Shankerlal Guru Committee was associated with—
(A) Agricultural Marketing
(B) Agriculture Production
(C) Public Distribution System
(D) None of these

18. The Ex-officio Secretary of NDC is—
(A) Secretary of Finance Ministry
(B) General Secretary of Lok Sabha
(C) Secretary of Planning Commission
(D) Vice Chairman of Planning Commission

19. Which statement is correct for Indian Planning Commission ?
(A) It is not defined in Indian Constitution
(B) Members and Vice-Chairman of it do not have fixed working duration
(C) Members do not require any minimum education
(D) All of these

20. The base year of present Consumer Price Index (CPI) for Urban Non-Manual Employees (CPI—UNME) is—
(A) 1980-81
(B) 1981-82
(C) 1982-83
(D) 1984-85

21. The aim of Differentiated Interest Scheme was to provide concessional loans to—
(A) Weaker Section of Society
(B) Public Sector Industries
(C) Public Limited Companies
(D) Big Exporters

22. The process of budget making after re-evaluating every item of expenditure in every financial year is known as—
(A) Performance Budgeting
(B) Deficit Budgeting
(C) Zero Based Budgeting
(D) Fresh Budgeting

23. The prices at which the govt. purchases food grains for maintaining the public distribution system and for building up buffer-stocks is known as—
(A) Minimum support price
(B) Procurement price
(C) Issue price
(D) Ceiling price

24. What is inflation? How does fiscal deficit lead to higher inflation? (Min50 words)

25. What measures are required to curb the prevailing situation of consistently falling official rate of general inflation, and soaring prices of food grains? (Min50 words)