INDIAN ECONOMY

[1] If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits
A. will decrease
B. will increase
C. will neither increase nor decrease
D. None of the above
Ans -  C

[2] India changed over to the decimal system of coinage in
A. April 1995
B. April 1957
C. April 1958
D. April 1959
Ans -  B

[3] The association of the rupee with pound sterling as the intervention currency was broken in
A. 1990
B. 1991
C. 1992
D. 1993
Ans -  C

[4] On which one of the followings is the benefits received principle of taxation to achieve optimality bases?
A. Marginal benefit received
B. Total benefit received
C. Average benefit received
D. Ability to pay for the benefit
Ans - D
 
[5] One of the reasons for India's occupational structure remaining more or less the same over the years has been that
A. investment pattern has been directed towards capital intensive industries
B. productivity in agriculture has been high enough to induce people to stay with agriculture
C. ceiling on land holdings have enabled more people to own land and hence their preference to stay with agriculture
D. people are largely unaware of the significance of transition from agriculture to industry for economic development
Ans -  A

[6] Gross domestic capital formation is defined as
A. flow of expenditure devoted to increased or maintaining of the capital stock
B. expenditure incurred on physical assets only
C. production exceeding demand
D. net addition to stock after depreciation
Ans - D

[7] On July 12, 1982, the ARDC was merged into
A. RBI
B. NABARD
C. EXIM Bank
D. None of the above
Ans - B

[8] Which of the following is the most appropriate cause of exports surplus?
A. Country's exports promotion value
B. Country's stringent import policy
C. Developments in national and international markets
D. None of the above
Ans - C

[9] If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to
A. increase it
B. decrease it
C. no impact
D. None of the above
Ans - A

[10] Which of the following items would not appear in a company's balance sheet?
A. Value of stocks of raw materials held
B. Total issued capital
C. Revenue from sales of the company's products
D. Cash held at the bank
Ans - C