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Preliminary Economy Previous Question paper

Paper – 2016

1. Which of the following is/ are the indicator/ indicators used by IFPRI to compute the Global Hunger Index Report?
1) Undernourishment
2) Child stunting
3) Child Mortality
Select the correct answer using the code given below

(A) 1 only
(B) 2 and 3only
(C) 1, 2 and 3
(D) 1 and 3 only

2. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the government to reduce the deficit?
1) Reducing Revenue Expenditure
2) Introducing new welfare scheme
3) Rationalizing subsidies
4) Reducing import duties
Select the correct answer using the code below

(A) 1 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2, 3 and 4

3. The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?
1) Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
2) Payment Banks can issue both credit cards and debit cards
3) Payment banks cannot undertake lending activities.
Select the correct answer using the code given below

(A) 1 and 2 only
(B) 1 and 3 only
(C) 2 only
(D) 1, 2 and 3

4. Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?

(A) Providing technical and financial assistance to the start-up entrepreneurs in the field of renewable sources of energy
(B) Providing electricity to every household in the country of 2018
(C) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
(D) Providing for financial turnaround and revival of power distribution companies

5. With reference to ‘IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?
1) The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
2) They are the rupee-denominated bonds and are a source of debt financing for the public and private sector
Select the correct answer using the codes given below.

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

6. In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?

(A) WTO affairs
(B) SAARC affairs
(C) UNFCCC affairs
(D) India-EU negotiations on FTA

7. Which of the following is/are included in the capital budget of the Government of India?
1) Expenditure on acquisitions of assets like roads, buildings, machinery, etc.
2) Loans received from foreign governments
3) Loans and advances granted to the States and Union Territories
Select the correct answer using the code given below.

(A) 1 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3

8. Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

(A) Rouble
(B) Rand
(C) Indian Rupee
(D) Renminbi

9. With reference to the International Monetary and Financial Committee (IMFC), consider the following statements:
1) IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.
2) The World Bank participates as observer in IMFC’s meetings.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

10. Which of the following best describes the term ‘import cover’, sometimes seen in the news?

(A) It is the ratio of value of imports to the Gross Domestic Product of a country.
(B) It is the total value of imports of a country in a year.
(C) It is the ratio between the value of exports and that of imports between two countries.
(D) It is the number of months of imports that could be paid for by a country’s international reserves.

11. With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:
1) Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.
2) This scheme covers post-harvest losses arising out of the cyclones and unseasonal rains.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

12. With reference to ‘Stand Up India Scheme’ which of the following statements is/are correct?
1) Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
2) It provides for refinance through SIDBI.
Select the correct answer using the code given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

13. ‘India’s ranking in ease of doing Business Index’ is sometimes seen in the news. Which of the following have declared that ranking?

(A) Organization of Economic Cooperation and development (OECD)
(B) World Economic Forum
(C) World Bank
(D) World trade Organization (WTO)

14. What is/are the purpose/purposes of ‘Marginal Cost of Funds based Lending Rate (MCLR)’announced by RBI
1) These guidelines help improve the transparency in the methodology followed by the banks for determining the interest rates on advances
2) These guidelines helps ensure the availability of bank credit the interest rate which are fare to the borrowers as well as the banks
Select the correct answers using the code given below

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

15. With reference to ‘Financial Stability and Development Council’, consider the following statements:
1) It is an organ of NITI Aayog.
2) It is headed by the Union Finance Minister.
3) It monitors macroprudential supervision of the economy.
Which of the statements given above is/are correct?

(A) 1 and 2 only
(B) 3 only
(C) 2 and 3 only
(D) 1, 2 and 3

16. The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

(A) mining operation by multinational companies in resource-rich but backward areas
(B) curbing of the tax evasion by multinational companies
(C) exploitation of genetic resources of a country by multinational companies
(D) lack of consideration of environmental costs in the planning and implementation of developmental projects

17. ‘SWAYAM’, an initiative of the Government of India, aims at

(A) Promoting the Self Help Groups in rural areas
(B) providing financial and technical assistance to young start-up entrepreneurs
(C) promoting the education and health of adolescent girls
(D) providing affordable and quality education to the citizens for free.

18. Consider the following statements:
1) New Development Bank had been set up by APEC.
2) The headquarters of New Development Bank is in Shanghai.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

19. What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?
1) To bring the idle gold lying with Indian households into the economy
2) To promote FDI in the gold and jewellery sector
3) To reduce Indian’s dependence on gold imports
Select the Correct answer using the code given below.

(A) 1 only
(B) 2 and 3 only
(C)1 and 3 only
(D) 1, 2 and 3

20. Pradhan Mantri MUDRA Yojana is aimed at

(A) Bringing the small entrepreneurs into formal financial system
(B) Providing loans to poor farmers for cultivating particular crops
(C) Providing pensions to old and destitute persons
(D) Funding the voluntary organizations involved in the promotion of skill development and employment generation.

21. ‘Global Financial Stability Report’ is prepared by the

(A) European Central Bank
(B) International Monetary Fund
(C) International Bank for Reconstruction and Development
(D) Organisation for Economic Cooperation and Development

22. Regarding ‘Atal pension Yojana’, which of the following statements is/are correct?
1) It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
2) Only one member of a family can join the scheme
3) Same amount of pension is guaranteed for the spouse for life after subscriber’s death.
Select the correct answer using the code given below.

(A) 1 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3

Paper – 2015

1. With reference to Indian economy, consider the following statements:
1) The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
2) The Gross Domestic Product at market prices (in rupees) has steadily increased in the last
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

2. With reference to Indian economy, consider the following
1) Bank rate
2) Open market operations
3) Public debt
4) Public revenue
Which of the above is/are component/ components of Monetary Policy?

(A) 1 only
(B) 2,3 and 4
(C) 1 and 2
(D) 1,3 and 4

3. With reference to inflation in India, which of the following statements is correct?

(A) Controlling the inflation in India is the responsibility of the Government of India only
(B) The Reserve Bank of India has no role in controlling the inflation
(C) Decreased money circulation helps in controlling the inflation
(D) Increased money circulation helps in controlling the inflation

4. The substitution of steel for wooden ploughs in agricultural production is an example of

(A) labour-augmenting technological progress
(B) capital-augmenting technological progress
(C) capital-reducing technological progress
(D) None of the above

5. The problem of international liquidity is related to the non-availability of

(A) goods and services
(B) gold and silver
(C) dollars and other hard currencies
(D) exportable surplus

6. Which one of the following best describes the main objective of ‘Seed Village Concept’?

(A) Encouraging the farmers to use their own farm seeds and discouraging them to buy the seeds from others
(B) Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost
(C) Earmarking some villages exclusively for the production of certified seeds
(D) Identifying the entrepreneurs in village and providing them technology and finance to set up seed companies

7. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?
1) Reducing revenue expenditure
2) Introducing new welfare schemes
3) Rationalizing subsidies
4) Expanding industries
Select the correct answer using the code given below.

(A) 1 and 3 only
(B) 2 and 3 only
(C) 1 only
(D) 1, 2, 3 and 4

8. ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for

(A) providing housing loan to poor people at cheaper interest rates
(B) promoting women’s Self-Help Groups in backward areas
(C) promoting financial inclusion in the country
(D) providing financial help to the marginalized communities

9. With reference to the Fourteenth Finance Commission, which of the following statements is/ are correct?
1) It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
2) It has made recommendations concerning sector-specific grants.
Select the correct answer using the code given below.

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

10. A decrease in tax to GDP ratio of a country indicates which of the following?
1) Slowing economic growth rate
2) Less equitable distribution of national income
Select the correct answer using the code given below.

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

11. In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?

(A) Coal production
(B) Electricity generation
(C) Fertilizer production
(D) Steel production

12. The Fair and Remunerative Price (FRP) of sugarcane is approved by the

(A) Cabinet Committee on Economic Affairs
(B) Commission for Agricultural Costs and Prices
(C) Directorate of Marketing and Inspection, Ministry of Agriculture
(D) Agricultural Produce Market Committee

13. Which one of the following issues the ‘Global Economic Prospects’ report periodically?

(A) The Asian Development Bank
(B) The European Bank for Reconstruction and Development
(C) The US Federal Reserve Bank
(D) The World Bank

14. When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

(A) India’s GDP growth rate increases drastically
(B) Foreign Institutional Investors may bring more capital into our country
(C) Scheduled Commercial Banks may cut their lending rates
(D) It may drastically reduce the liquidity to the banking system

15. In India, markets in agricultural products are regulated under the

(A) Essential Commodities Act, 1955
(B) Agricultural Produce Market Committee Act enacted by States
(C) Agricultural Produce (Grading and Marking) Act, 1937
(D) Food Products Order, 1956 and Meat and Food Products Order, 1973

16. Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?

(A) The Reserve Bank of India
(B) The Department of Economic Affairs
(C) The Labour Bureau
(D) The Department of Personnel and Training

17. The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the affairs of the

(A) Food and Agriculture Organization
(B) United Nations Framework Conference on Climate Change
(C) World Trade Organization
(D) United Nations Environment Programme

18. Convertibility of rupee implies

(A) being able to convert rupee notes into gold
(B) allowing the value of rupee to be fixed by market forces
(C) freely permitting the conversion of rupee to other currencies and vice versa
(D) developing an international market for currencies in India

19. The Government of India has established NITI Aayog to replace the

(A) Human Rights Commission
(B) Finance Commission
(C) Law Commission
(D) Planning Commission

20. Consider the following statements:
1) The Accelerated Irrigation Benefits Programme was launched during 1996-97 to provide loan assistance to poor fanners.
2) The Command Area Development Programme was launched in 1974-75 for the development of water-use efficiency.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

21. ‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to

(A) develop national strategies for the conservation and sustainable use of biological diversity
(B) improve banking sector’s ability to deal with financial and economic stress and improve risk management
(C) reduce the greenhouse gas emissions but places a heavier burden on developed countries
(D) transfer technology from developed Countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals

Paper – 2014

1. If the interest rate is decreased in an economy, it will

(A) decrease the consumption expenditure in the economy
(B) increase the tax collection of the Government
(C) increase the investment expenditure in the economy
(D) increase the total savings in the economy

2. In the context of food and nutritional security of India , enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is/are the constraint/constraints in its wider/greater implementation?
1) There is no National Seeds Policy in place.
2) There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planning materials of horticulture crops.
3) There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.
Select the correct answer using the code given below

(A) 1 and 2 only
(B) 3 only
(C) 2 and 3 only
(D) None

3. Which of the following organizations brings out the publication known as ‘World Economic Outlook’?

(A) The International Monetary Fund
(B) The United Nations Development Programme
(C) The World Economic Forum
(D) The World Bank

4. With reference to Union Budget, which one of the following is/are covered under Non-Plan Expenditure?
1) Defence expenditure
2) Interest payments
3) Salaries and pensions
4) Subsidies
Select the correct answer using the code given below

(A) 1 only
(B) 2 and 3 only
(C) 1, 2, 3 and 4
(D) None

5. Which of the following are associated with ‘Planning’ in India?
1) The Finance Commission
2) The National Development Council
3) The Union Ministry of Rural Development
4) The Union Ministry of Urban Development
5) The Parliament
Select the correct answer using the codes given below.

(A) 1, 2 and 5 only
(B) 1, 3 and 4 only
(C) 2 and 5 only
(D) 1, 2, 3, 4 and 5

6. The sales tax you pay while purchasing a toothpaste is a

(A) tax imposed by the Central Government
(B) tax imposed by the Central Government but collected by the State Government
(C) tax imposed by the State Government but collected by the Central Government
(D) tax imposed and collected by the State Government

7. What does venture capital mean?

(A) A short-term capital provided to industries
(B) A long-term start-up capital provided to new entrepreneurs
(C) Funds provided to industries at times of incurring losses
(D) Funds provided for replacement and renovation of industries

8. The main objective of the 12th Five-Year plan?

(A) inclusive growth and poverty reduction
(B) inclusive growth and sustainable growth
(C) sustainable and inclusive growth to reduce unemployment
(D) faster, sustainable and more inclusive growth

9. With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
1) Balance of trade
2) Foreign assets
3) Balance of invisible
4) Special Drawing Rights
Select the correct answer using the codes given below.

(A) 1 only
(B) 2 and 3
(C) 1 and 3
(D) 1, 2 and 4

10. The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to

(A) banking operations
(B) communication networking
(C) military strategies
(D) supply and demand of agricultural products

11. What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?
1) It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
2) It enables the beneficiaries in the rural areas to make deposits and withdrawals.
Select the correct answer using the codes given below.

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

12. In the context of Indian economy, which of the following is/are purpose/purposes of ‘Statutory Reserve Requirements’?
1) To enable the Central Bank to control the amount of advances the bank can create
2) To make the people’s deposits with banks safe and liquid
3) To prevent the commercial banks from making excessive profits
4) To force the banks to have sufficient vault-cash to meet their day-to-day requirements.
Select the correct answer using the code given below:

(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2, 3 and 4

Paper – 2013

1. Disguised unemployment gently means

(A) large number of people remain unemployed
(B) alternative employment is not available
(C) marginal productivity of labour is zero
(D) productivity of workers is low

2. Which of the following groups of items is included in India’s foreign-exchange services?

(A) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
(B) Foreign-currency assets, gold holdings of the RBI and SDRs
(C) Foreign-currency assets, loans from the World Bank and SDRs
(D) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank

3. An increase in the Bank Rate generally indicates that the

(A) Market rate of interest is likely to fall
(B) Central Banking is no longer making loans to commercial banks
(C) Central Banking is following an easy money policy
(D) Central Banking is following a tight money policy

4. In India, deficit financing is used for raising resources for

(A) Economic development
(B) Redemption of public debt
(C) Adjusting the balance of payments
(D) Reducing the foreign debt

5. Priority Sector Lending by banks in India constitutes the lending to

(A) agriculture
(B) micro and small enterprises
(C) weaker sections
(D) All of the above

6. A rise in general level of prices may be caused by
1) An increase in the money supply
2) A decrease in the aggregate level of output
3) An increase in the effective demand
Select the correct answer using the codes given below:

(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2 and 3

7. Which one of the following is likely to be the most inflationary in its effect?

(A) Repayment of public debt
(B) Borrowing from the public to finance a budget deficit
(C) Borrowing from the banks to finance a budget deficit
(D) Creating new money to finance a budget deficit

8. Supply of money remaining the same when there is an increase in demand for money, there will be

(A) a fall in level of prices
(B) an increase in the rate of interest
(C) a decrease in the rate of interest
(D) an increase in level of income and development

9. Which of the following grant/grants direct credit assistance to rural households?
1) Regional Rural Banks
2) National Bank for Agriculture and Rural Development
3) Land Development Banks
Select the correct answer using the codes given below:

(A) 1 and 2 only
(B) 2 only
(C) 1 and 3 only
(D) 1, 2 and 3

10. Consider the following statements:
1) Inflation benefits the debtors.
2) Inflation becomes the bondholders.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

11. Consider the following liquid assets:
1) Demand deposits with the banks
2) Time deposits with the banks
3) Savings deposits with the banks
4) Currency
The correct sequence of these assets in the decreasing order of liquidity is

(A) 1-4-3-2
(B) 4-3-2-1
(C) 2-3-1-4
(D) 4-1-3-2

12. The balance of payments of a country is a systematic record of

(A) All import and export transactions of a country during a given period of time, normally a year
(B) Goods exported form a country during a year
(C) Economic transactions between the government of one country to another
(D) Capital movements from one country to another

13. The Reserve Bank of India regulates the commercial banks in matters of
1) Liquidity of assets
2) Branch expansion
3) Merger of banks
4) Winding-up of banks
Select the correct answer using the codes given below:

(A) 1 and 4 only
(B) 2, 3 and 4 only
(C) 1, 2 and 3 only
(D) 1, 2, 3 and 4

14. Which of the following constitute Capital Account?
1) Foreign loans
2) Foreign Direct Investment
3) Private Remittances
4) Portfolio Investment
Select the correct answers using the code given below

(A) 1, 2 and 3
(B) 1, 2 and 4
(C) 2, 3 and 4
(D) 1, 3 and 4

15. In the context of Indian economy, ‘ Open Market Operations’ refers to

(A) borrowing by scheduled banks from the RBI
(B) lending by commercial banks to industry and trade
(C) purchase and sale of government securities by the RBI
(D) None of the above

16. The national income of a country for a given period is equal to the

(A) total value of goods and services produced by the nationals
(B) sum of total consumption and investment expenditure
(C) sum of personal income of all individuals
(D) money value of final goods and services produced

17. To obtain full benefits of demographic dividend, what should India do?

(A) Promoting skill development
(B) Introducing more social security schemes
(C) Reducing infant mortality rate
(D) Privatization of higher education

18. Economic growth in country X will necessarily have to occur if

(A) there is technical progress in the world economy
(B) there is population growth in X
(C) there is capital formation in X
(D) the volume of trade grows in the world economy

Paper – 2012

1. What is/are the recent policy initiative(s) of Government of India to promote growth of manufacturing sector?
1) Setting up of National Investment and Manufacturing zones
2) Providing the benefit of ‘single window clearance’
3) Establishing the Technology Acquisition and Development Fund
Select the correct answer using the codes given below:

(A) 1 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3

2. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. which of the following are among those Eight Core Industries?
1) Cement
2) Fertilizers
3) Natural Gas
4) Refinery products
5) Textiles
Select the correct answer using the codes given below:

(A) 1 and 5 only
(B) 2, 3 and 4 only
(C) 1, 2, 3 and 4 only
(D) 1, 2 3, 4 and 5

3. Which of the following would include Foreign Direct Investment in India?
1) Subsidies of foreign companies in India
2) Majority foreign equity holding in Indian companies
3) Companies exclusively financed by foreign companies
4) Portfolio investment
Select the correct answer using the codes given below:

(A) 1, 2, 3 and 4
(B) 2 and 4 only
(C) 1 and 3 only
(D) 1, 2 and 3 only

4. Despite having large reserves of coal, why does India import millions of tonnes of coal?
1) It is the policy of India to save its own coal reserves for future, and import it from other countries for the present use.
2) Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country.
3) Steel companies need large quantity of cooking coal which has to be imported.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3

5. Which of the following can be said to be essentially the parts of ‘Inclusive Governance’?
1) Permitting the Non-Banking Financial Companies to do banking
2) Establishing effective District planning Committees in all the districts
3) Increasing the government spending on public health
4) Strengthening the Mid-day Meal Scheme
Select the correct answer using the codes given below:

(A) 1 and 2 only
(B) 3 and 4 only
(C) 2, 3 and 4 only
(D) 1, 2, 3 and 4

6. Consider the following statements:
The price of any currency in international market is decided by the
1) World Bank
2) Demand for goods/services provided by the country concerned
3) Stability of the government of the concerned country
4) Economic potential of the country in question
Which of the statements given above is/are correct?

(A) 1, 2, 3 and 4
(B) 2 and 3 only
(C) 3 and 4 only
(D) 1 and 4 only

7. The basic aim of Lead Bank Scheme is that

(A) big banks should try to open offices in each district
(B) there should be stiff competition among the various nationalized banks
(C) individual banks should adopt particular districts for intensive development
(D) all the banks should make intensive efforts to mobilize deposits

8. Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission?
1) A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design
2) A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend
3) Devolution of a specified share of central taxes to local bodies as grants
Select the correct answer using the codes given below:

(A) 1 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3

9. The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following?
1) Other banks retain their deposits with the RBI.
2) The RBI lends funds to the commercial banks in times of need.
3) The RBI advises the commercial banks on monetary matters.
Select the correct answer using the codes given below:

(A) 2 and 3 only
(B) 1 and 2 only
(C) 1 and 3 only
(D) 1, 2 and 3

10. Which of the following circumstances may capital gain arise?
1) When there is an increase in the sales of a product
2) When there is a natural increase in the value of the property owned
3) When you purchase a painting and there is growth in its value due to increase in its popularity
Select the correct answer using the codes given below:

(A) 1 only
(B) 2 and 3 only
(C) 2 only
(D) 1, 2 and 3

11. Which of the following measures would result in an increase in the money supply in the economy?
1) Purchase of government securities from the public by the Central Bank
2) Deposit of currency in commercial banks by the public
3) Borrowing by the government from the Central Bank
4) Sale of government securities to the public by the Central Bank
Select the correct answer using the codes given below:

(A) 1 only
(B) 2 and 4 only
(C) 1 and 3 only
(D) 2, 3 and 4

12. With reference to National Rural Health Mission, which of the following are the jobs of ‘ASHA’, a trained community health worker?
1) Accompanying women to the health facility for antenatal care check-up
2) Using pregnancy test kits for early detection of pregnancy
3) Providing information on nutrition and immunization
4) Conducting the delivery of baby
Select the correct answer using the codes given below:

(A) 1, 2 and 3 only
(B) 2 and 4 only
(C) 1 and 3 only
(D) 1, 2, 3 and 4

13. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor?
1) By setting up a large number of new manufacturing industries and agribusiness centres in rural areas
2) By strengthening ‘self-help groups’ and providing skill development
3) By supplying seeds, fertilizers, diesel pump-sets and micro-irrigation equipment free of cost to farmers
Select the correct answer using the codes given below:

(A) 1 and 2 only
(B) 2 only
(C) 1 and 3 only
(D) 1, 2 and 3

14. Consider the following:
1) Hotels and restaurants
2) Motor transport undertaking
3) Newspaper establishments
4) Private medical institutions
The employees of which of the above can have the ‘Social Security’ coverage under Employees’ State Insurance Scheme?

(A) 1, 2 and 3 only
(B) 4 only
(C) 1, 3 and 4 only
(D) 1, 2, 3 and 4

15. The endeavour of ‘Janani Suraksha Yojana’ Programme is
1) To promote institutional deliveries
2) To provide monetary assistance to the mother to meet the cost of delivery
3) To provide for wage loss due to pregnancy and confinement
Which of the statements given above is/are correct?

(A) 1 and 2 only
(B) 2 only
(C) 3 only
(D) 1, 2 and 3

16. How do District Rural Development Agencies (DRDAs) help in the reduction of rural poverty in India?
1) DRDAs act as Panchyati Raj Institutions in certain Specified backward regions of the country.
2) DRDAs undertake area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures.
3) DRDAs secure inter-sectoral and inter-departmental coordination and cooperation for effective implementation of anti-poverty programmes
4) DRDAs watch over and ensure effective utilization of the funds intended for anti-poverty programmes
Which of the statements given above is/are correct?

(A) 1, 2 and 3 only
(B) 3 and 4 only
(C) 4 only
(D) 1, 2 , 3 and 4

17. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?
1) Deprivation of education, health, assets and services at household level
2) Purchasing power parity at national level
3) Extent of budget deficit and GDP growth rate at national level
Select the correct answer using the codes given below:

(A) 1 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3

18. Consider the following specific stages of demographic transition associated with economic development
1) Low birth-rate with low death rate
2) High birth-rate with high death rate
3) High birth-rate with low death rate
Select the correct order of the above stages using the codes given below

(A) 1, 2, 3
(B) 2, 1, 3
(C) 2, 3, 1
(D) 3, 2, 1

Paper – 2011

1. India has experienced persistent and high food inflation in the recent past. What could be the reasons?
1) Due to a gradual switch over to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
2) As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3) The food supply chain has structural constraints.
Which of the statements given above is/are correct?

(A) 1 and 2 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3

2. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

(A) Commercial Banks
(B) Cooperative Banks
(C) Regional Rural Banks
(D) Microfinance Institutions

3. Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?
1) The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
2) The Government no longer intends to retain the management control of CPSEs.
Select the correct answer using the code given below

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

4. Regarding the International Monetary Fund, which one of the statements is correct?

(A) It can grant loans to any country
(B) It can grant loans to only developed countries
(C) It can grant loans to only member countries
(D) It can grant loans to the central bank of a country

5. Consider the following actions which the Government can take:
1) Devaluing the domestic currency
2) Reduction in the export subsidy
3) Adopting suitable policies which attract greater FDI and more funds from FIIs
Which, of above action/actions can help in reducing the current account deficit?

(A) 1 and 2
(B) 2 and 3
(C) 3 only
(D) 1 and 3

6. Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between two?

(A) FII helps bring better management skills and technology, while FDI only brings in capital
(B) FII helps in increasing capital availability in general while FDI only targets specific sectors
(C) FDI flows only into the secondary market, while FII targets primary market
(D) FII is considered to be more stable than FDI

7. In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to

(A) Export
(B) Import
(C) Production
(D) Consumption

8. A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?

(A) It is impact of drastic deficiency in supply due to failure of crops
(B) It is impact of the surge in demand due to rapid economic growth
(C) It is impact of the price level of previous years on the calculation of inflation rate
(D) None of the statements (a), (b) and (c) given above is correct

9. Why is the offering of “teaser loans” by commercial banks a cause of economic concern?
1) The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2) In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

10. The lowering Bank Rate by the Reserve Bank of India leads to

(A) More liquidity in the market
(B) Less liquidity in the market
(C) No change in the liquidity in the market
(D) Mobilization of more deposits by commercial banks.

11. Which one of the following statements appropriately describes the “fiscal stimulus”?

(A) It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economics growth
(B) It is an intense affirmative action of the Government to boost economic activity in the country
(C) It is Government’s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation
(D) It is an extreme affirmative action by the Government to pursue its policy of financial incusion

12. Which one of the following is not a feature of “Value Added Tax”?

(A) It is a multi-point destination-based system of taxation
(B) It is a tax levied on value addition at each stage of transaction in the production-distribution chain
(C) It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer
(D) It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation

13. In the context of Indian economy, consider the following statements:
1) The growth rate of GDP has steadily increased in the last five years
2) The growth rate in per capita income has steadily increased in the last five years
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

14. Economic growth is usually coupled with

(A) Deflation
(B) Inflation
(C) Stagflation
(D) Hyperinflation

15. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”?

(A) Adult members only the scheduled caste and scheduled tribe households
(B) Adult members of below poverty line (BPL) households
(C) Adult members of households of all backward communities
(D) Adult members of any households

16. Which of the following can aid in furthering the Government’s objective of inclusive growth?
1) Promoting Self-Help Groups
2) Promoting Micro, Small and Medium Enterprises
3) Implementing the Right to Education Act
Select the correct answer using the codes given below:

(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2 and 3

17. A “closed economy” is an economy in which

(A) the money supply is fully controlled
(B) deficit financing takes place
(C) only exports take place
(D) neither exports nor imports take place

18. With what purpose is the Government of India promoting the concept of “Mega Food Parks”?
1) To provide good infrastructure facilities for the food processing industry
2) To increase the processing of perishable items and reduce wastage
3) To provide emerging and eco-friendly food processing technologies to entrepreneurs.
Select the correct answer using the codes given below

(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2 and 3

19. Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are:
1) Credit Facilities
2) Saving Facilities
3) Insurance Facilities
4) Fund Transfer Facilities
Select the Correct answer using the code given below.

(A) 1 only
(B) 1 and 4 only
(C) 2 and 3 only
(D) 1, 2, 3 and 4

Paper – 2010

1. Consider the following statements:
1) The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar season.
2) Sugar and sugarcane are essential commodities under Essential Commodities Act.
Which of the statements given above is/ are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

2. Which one of the following is not a feature of Limited Liability Partnership firm?

(A) Partners should be less than 20
(B) Partnership and management need not be separate
(C) Internal governance may be decided by mutual agreement among partners
(D) It is cooperate body with perpetual succession

3. In order to comply with TRIPS Agreement, India enacted the Geographical Indications of Goods (Registration & Protection) Act, 1999. The difference/ differences between a “Trade Mark” and a Geographical Indication is/are
1) A Trade Mark is an individual or a company’s right whereas a Geographical Indication is community’s right.
2) A Trade Mark can be licensed whereas a Geographical Indication can not be licensed.
3) A Trade Mark is assigned to the manufactured goods whereas the Geographical Indication assigned to the agriculture goods/products and handicrafts only.
Which of the statements given above is/ are correct?

(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2 and 3

4. In the context of the affairs of which of the following is the phrase “Special Safeguard Mechanism” mentioned in the news frequently?

(A) United Nations Environment Programme
(B) World Trade Organization
(C) ASEAN- India Trade Free Agreement
(D) G-20 Summit

5. A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economics like UK and France. Why?

(A) India has preference for certain countries as regards receiving FDI
(B) India has double taxation avoidance agreement with Mauritius
(C) Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest in India
(D) Impending dangers of global climatic change prompt Mauritius to make huge investments in India

6. Consider the following countries:
1. Brail 2. Mexico 3. South Africa
According to UNCTAD, which of the above is/are categorized as “Emerging Economies”?

(A) 1 only
(B) 1 and 3 only
(C) 2 and 3 only
(D) 1, 2 and 3

7. With reference to BRIC countries, consider the following statements:
1) At present, China’s GDP is more than the combined GDP of all the three other countries.
2) China’s population is more than the combined population of any two countries.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

8. Which of the following is/are treated as artificial currency?

(D) Both ADR and SDR

9. Stiglitz Commission established by the President of the United Nations General Assembly was in the international news. The commission was supposed to deal with

(A) The challenges posed by the impending global climate change and prepare a road map
(B) The workings of the global financial systems and to explore ways and means to secure a more sustainable global order
(C) Global terrorism and prepare a global action plan for the mitigation of terrorism
(D) Expansion of United Nations Security Council in the present global scenario

10. As regards the use of international food safety standards as reference point for the dispute settlements, which one of the following does WTO collaborate with?

(A) Codex Alimentarius Commission
(B) International Federation of Standard Users
(C) International Organisation for Standardization
(D) World Standards Cooperation

11. As a result of their annual survey, the National Geographic Society and an international poling firm Globe Scan gave India top rank in Greendex 2009 score. What is this score?

(A) It is measure of efforts made by different countries in adopting technologies for reducing carbon footprint
(B) It is measure of environmentally sustainable consumer behaviour in different countries
(C) It is an assessment of programmes/schemes undertaken by different countries for improving the conservation of natural resources
(D) It is an index showing the volume of carbon credits sold by different countries

12. In the context of bilateral trade negotiations between India and European Union, what is the difference between European Commission and European Council?
1) European Commission represents the EU in trade negotiations whereas European Council participates in the legislation of matters pertaining to economic policies of European Union.
2) European Commission comprises the Head of State or government of member countries whereas the European Council comprises of the nominated by European Parliament.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

13. Which one of the following is not related to United Nations?

(A) Multinational Investment Guarantee Agency
(B) International Finance Corporation
(C) International Centre for Settlement of Investment Disputes
(D) Bank for International Settlements

14. The International Development Association, a lending agency, is administrated by the

(A) International Bank for Reconstruction & Development
(B) International Fund for Agriculture Development
(C) United Nations Development Programme
(D) United Nations Industrial Development Organization

15. Inclusive growth as enunciated in the Eleventh-Five Year Plan does not include one of the following:

(A) Reduction of poverty
(B) Extension of employment opportunities
(C) Strengthening of capital market
(D) Reduction of gender inequality

16. In the context of India’s Five Year Plans, a shift in the pattern of industrialization, with lower emphasis on heavy industries and more on infrastructure begins in

(A) Fourth plan
(B) Sixth plan
(C) Eighth plan
(D) Tenth plan

17. Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?

(A) Cash Credit Ratio
(B) Debt Service Obligation
(C) Liquidity Adjustment Facilities
(D) Statutory Liquidity Ratio

18. Which one of the following statements is an appropriate description of deflation?

(A) It is a sudden fall in the value of a currency against other currencies
(B) It is a persistent recession in both the financial and real sectors of economy
(C) It is a persistent fall in the general price level of goods and services
(D) It is fall in the rate of inflation over period of time

19. With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements:
1) They cannot engage in the acquisition of securities issued by the government
2) They cannot accept demand deposits like Savings Account
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C)Both 1 and 2
(D) Neither 1 nor 2

20. Which one of the following was not stipulated in the Fiscal Responsibility and Budget Management Act, 2003?

(A) Elimination of revenue deficit by the end of the fiscal year 2007-08
(B) Non-borrowing by the central government from Reserve Bank of India except under certain circumstances
(C) Elimination of primary deficit by the end of the fiscal year 2008-09
(D) Fixing government guarantees in any financial year as a percentage of GDP

21. In the context of Indian economy, consider the following pairs:
Term Most appropriate description
1. Melt down Fall in stock prices
2. Recession Fall in growth rate
3. Slow down Fall in GDP
Which of the pairs given above is/ are correctly matched?

(A) 1 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3

22. In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by

(A) Union Ministry of Finance
(B) Union Finance Commission
(C) Indian Banks’ Association
(D) None of the above

23. When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?

(A) The commercial banks will have less money to lend
(B) The Reserve Bank of India will have less money to lend
(C) The Union Government will have less money to lend
(D) The commercial banks will have more money to lend

24. In India, which of the following is regulated by the Forward Markets Commission?

(A) Currency Futures Trading
(B) Commodities Futures Trading
(C) Equity Futures Trading
(D) Both Commodities Futures and Financial Futures Trading

25. With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct?

(A) The Banking Ombudsman is appointed by the Reserve Bank of India
(B) The Banking Ombudsman can consider complaints from Non-Resident Indians having accounts in India
(C) The orders passed by the Banking Ombudsman are final and binding on the parties concerned
(D) The service provided by the Banking Ombudsman is free of any fee

26. With reference to India, consider the following:
1. Nationalization of Banks
2. Formation of Regional Rural Banks
3. Adoption of villages by Bank Branches
Which of the above can be considered as steps taken to achieve the “financial inclusion” in India?

(A) 1 and 2 only
(B) 2 and 3 only
(C) 3 only
(D) 1, 2 and 3

27. Consider the following statements:
The functions of commercial banks in India include
1) Purchase and sales of shares and securities on behalf of customers
2) Acting as executors and trustees of wills.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

28. In the parlance of financial investments, the term ‘bear’ denotes

(A) An investor who feels that the price of a particular security is going to fall
(B) An investor who excepts the price of particular shares to rise
(C) A shareholder or a bondholder who has an interest in a company, financial or otherwise
(D) Any lender whether by making a loan or buying a bond

29. Consider the following actions by the Government:
1. Cutting the tax rates
2. Increasing the government spending
3. Abolishing the subsidies
In the context of economic recession, which of the above actions can be considered a part of the “fiscal stimulus” package?

(A) 1 and 2 only
(B) 2 only
(C) 1 and 3 only
(D) 1, 2 and 3

30. With reference to India, consider the following statements:
1) The Wholesale Price Index (WPI) in India, is available on a monthly basis only
2) As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI give less weight to food articles
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

31. With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements:
1. The assets in the National Investment Fund are managed by the Union Ministry of Finance
2. The National Investment Fund is to be maintained within the Consolidated Fund of India
3. Certain Asset Management Companies are appointed as the fund managers
4. A certain proportion of annual income is used for financing select social sectors
Which of the statements given above is/are correct?

(A) 1 and 2
(B) 2 only
(C) 3 and 4
(D) 3 only

32. In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years?


(A) Service tax
(B) Personal income tax
(C) Excise duty
(D) Corporation tax

33. Consider the following statements:
1) Levied by the Union
2) Collected by the States
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

34. An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. What are those crops?

(A) Rice and Wheat only
(B) Rice, Wheat and pulses only
(C) Rice, Wheat, pulses and oilseeds only
(D) Rice, Wheat, pulses, oilseeds and vegetables

35. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following:
1) Development of infrastructure facilities
2) Promotion of investment from foreign sources
3) Promotion of exports of services only
Which of the above are the objectives of this Act?

(A) 1 and 2 only
(B) 3 only
(C) 2 and 3 only
(D) 1, 2 and 3

36. Consider the following statements:
1. The Commonwealth has no charter, treaty or constitution
2. All the territories/countries once under the British empire (jurisdiction/rule/mandate) automatically joined the Commonwealth a its memebers
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Paper – 2009

1.NAMA­11 (Nama­11) group of countries frequently appears in the
news in the context of the affairs of which one of the following?

A. Nuclear Suppliers Group
B. World Bank
C. World Economic Forum
D. W.T.O.

2. Which one of the following pairs is not correctly matched?

A. Japan: Nikkei
B. Singapore: Shcomp
D. USA : Nasdaq

3. Consider the following countries:

1. Brunei Darussalam.
2. East Timor
3. Laos

Which of the above is/are
member/members of ASEAN?

A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

4. Other than Venezuela, which one among the following from South
America is a member of OPEC ?

A. Argentina
B. Brazil
C. Ecuador
D. Bolivia

5. Consider the following pairs:
Large Bank        Country of origin
1. ABN Amro Bank   :    USA
2. Barclays Bank   :    UK
3. Kookmin Bank    :    Japan

Which of the above pairs is/are correctly matched?

A. 1 only
B. 2 only
C. 1 and 2
D. 2 and 3

6. In the context of global economy, which one of the following
pairs is not correctly matched?

A. JP Morgan Chase     : Financial Services
B. Roche Holding AG     : Financial Services
C. WL Ross & Co.     : Private Equity Firm
D. Warburg         : Private Equity Firm

7. Who among the following is the founder of World Economic

A. Klaus Schwab
B. John Kenneth Galbraith
C. Robert Zoellick
D. Paul Krugman

8. Consider the following pairs:
1. BMW AG            :     USA
2. Daimler AG        :     Sweden
3. Renault S.A.      :     France
4. Volkswagen AG   :     Germany

Which of the pairs given above is/are correctly matched?
A. 1, 2 and 3
B. 3 and 4
C. 4 only
D. 1, 2 and 4

9. During which Five Year Plan was the Emergency clamped, new
elections took place and the Janata Party was elected?

A. Third
B. Fourth
C. Fifth
D. Sixth

10. Consider the following statements regarding Indian Planning:
1. The Second Five­Year Plan emphasized on the establishment of
heavy industries.
2. The Third Five­Year Plan introduced the concept of import
substitution as a strategy for industrialization.
Which of the statements given above is/ are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

11. Consider the following:
1. Fringe Benefit Tax
2. Interest Tax
3. Securities Transaction Tax
Which of the above is/ are Direct Tax/Taxes?

A. 1 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3

12.With reference to the schemes launched by the Union
Government, consider the following statements :
1. Ministry of Health and Family Welfare launched the Rashtriya
Swasthya Bima Yojana.
2. Ministry of Textiles launched the Rajiv Gandhi Shilpi Swasthya
Bima Yojana.
Which of the statements given above is/are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

13. Among other things, which one of the following was the purpose
for which the Deepak Parekh Committee was constituted?
A. To study the current socio­economic conditions of certain minority
B. To suggest measures for financing the development of
C. To frame a policy on the production of genetically modified
D. To suggest measures to reduce the fiscal deficit in the Union

14. Consider the Following statements.
1. Between Census 1951 and Census 2001, the density of the
population if India has increased more than three times.
2. Between Census 1951 and Census 2001 the annual growth rate
(exponential) of the population of India has doubled.
Which of the statements given above is/are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

15. Which one of the following brings out the publication called
“Energy Statistics” from time to time?

A. Central Power Research Institute
B. Planning Commission
C. Power Finance Corporation Ltd.
D. Central Statistical Organization

16. With which one of the following has the B.K. Chaturvedi
Committee dealt?

A. Review of Centre­state relations
B. Review of Delimitation Act
C. Tax reforms and measures to increase revenues
D. Price reform in the oil sector

17. In the context of independent India’s Economy, which one of
the following was the earliest event to take place?

A. Nationalisation of Insurance companies
B. Nationalisation of State Bank of India
C. Enactment of Banking Regulation Act
D. Introduction of First Five­Year Plan

Paper – 2008

1. What does S & P 500 relate to ?

(a) Supercomputer
(b) A new technique in e­business
(c) A new technique in bridge building
(d) An index of stocks of large companies

2. Consider the following statements with reference to Indira Gandhi National Old
Age Pension Scheme (IGNOAPS) :
1. All persons of 60 years or above belonging to the household below poverty line
in rural areas are eligible.
2. The Central Assistance under this Scheme is at the rate of Rs. 300 per month
per beneficiary. Under the Scheme, States havebeen urged to give matching
Which of the statements given above is/are correct ?

(a)    1 Only
(b)    2 Only
(c)    Both 1 and 2
(d)    Neither 1 nor 2

3. What is the name of the scheme which provides training and skills to women
in traditional and non­ traditional trades?

(a) Kishori Shakti Yojna
(b) Rashtriya Mahila Kosh
(c) Swayamsiddha
(d) Swawlamban

Paper – 2007

1. Tarapore  Committee was associated with which one of the
following ?

(a) Special Economic Zones
(b) Fuller capital account convertibility
(c) Foreign exchange reserves
(d) Effect of oil­prices on the Indian economy

2. Who among the following served as the Chief Economist of the
International Monetary Fund ?

(a) Ashok Lahiri
(b) Sumantra Ghoshal
(c) Saumitra Chaudhuri
(d) Raghuram Rajan

3. Participatory Notes (PNs) are associated with which one of the
following ?

(a) Consolidated Fund of India
(b) Foreign Institutional Investors
(c) United Nations Development Programme
(d) Kyoto Protocol

4. Basel II relates to which one of the following?

(a) International standards for safety in civil aviation
(b) measures against cyber crimes
(c)  Measures against drug abouse by sportspersoans
(d) International standards for measuring the adequacy of a bank’s capital

5. Consider the following statements:
1.  The repo rate is the rate at which other banks borrow from the
Reserve Bank of India.
2. A value of 1 or Gini Coefficient in a country inplies that there is
perfectly equal income for everyone in its population.
Which of the statements given above is/are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

6. The National Housing Bank was set up in India as a whollyowned
subsidiary of which one of the following ?

(a) State Bank of india
(b) Reserve Bank of India
(c) ICICI Bank
(d) life Insurance Corporation of India

7. Which one of the following is the correct sequence in the
decreasing order of contribution of different sectors to the Gross
Domestic Product of India.?

(a) Service­ Industry­ Agriculture
(b) Service­Agriculture­Industry
(c) Industry­ Services­Agriculture
(d) Industry­Agriculture­Services

Paper – 2006

1. Consider the following statements :

1. In India, during the financial year 2004 ­ 2005 an increase of
below 10% over the value of exports (in rupee terms) in the financial
year 2003 ­ 2004 was reported.
2. According to the WTO, India.s share in the world merchandise
exports 2% in the year 2005.
Which of the statements given above is/are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

2. Consider the following statements :
1. The agreement on South Asian FreeTrade Area (SAFTA) came
into effect from 1st December, 2005.
2. As per SAFTA agreement terms, India, Pakistan and Sri Lanka
have to decrease their custom duties to the level of 0 to 5 percent by
the year 2013.
Which of the statements given above is/are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

3.Consider the following statements :
1. Life Insurance Corporation of India is the oldest insurance
company is India.
2. National Insurance Company Limited was nationalized in the year
1972 and made a subsidiary of General Insurance Corporation of
3. Headquarters of United India Insurance Company Limited are
located at Chennai.

Which of the statements given above are correct?
(a) 1, 2 and 3
(b) 1 and 2, only
(c) 2 and 3, only
(d) 1 and 3, only

4. What is IndoNext which was launched in January, 2005 ?

(a) A new scheme to promote Indian tourism
(b) A new scheme to promote export of Indian handicrafts
(c) An association of the Non­Resident Indians to organize Pravasi
Bhartiya Divas every year in India
(d) An alternative trading platform being promoted by the Bombay
Stock Exchange and Regional Stock Exchanges.

5. Which one of the following statements is correct ?
Fiscal Responsibility and Budget Management Act (FRBMA)

(a) fiscal deficit only
(b) revenue deficit only
(c) both fiscal and revenue deficit
(d) neither fiscal deficit nor revenue deficit.

6.Which one of the following is the correct statements?
Service tax is a/an

(a) direct tax levied by the Central Government.
(b) indirect tax levied by the Central Government
(c) direct tax levied by the State Government
(d) indirect tax levied by the State Government

Paper – 2005

1. Consider the following statements:
1. Poverty Reduction and Growth Facility (PRGF) has been
established by the International Development Association (IDA) to
provide further assistance to low­income countries facing high level
of indebtedness.
2. Singapore Regional Training Institute (STI) is one of the institutes
that provides training in macroeconomic analysis and policy, and
related subjects as a part of programme of the IMF institute.
Which of the statements is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

2. Consider the following statements:
1. The Headquarters of the International Organisation for
Standardization are located in Rome.
2. ISO 9000 is related to the quality management system and
3. ISO 14000 relates to environmental management system
Which of the statements is/are correct?

(a) 1, 2 and 3
(b) 3 only
(c) 2 and 3
(d) None

3. Consider the following statements:
1. During the year 2004, India’s foreign exchange reserves did not
exceed the 125 billion U.S. dollar mark.
2. The Series of index numbers of wholesale prices introduced from
April, 2000 has the year 1993­94 as base year.
Which of the statements is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

4. Consider the following statements:
1. Sensex is based on 50 of the most important stocks available on
the Bombay Stock Exchange (BSE)
2. For calculating the Sensex, all the Sensex stocks are assigned
proportional weightage.
3. New York Stock Exchange is the oldest stock exchange in the
Which of the statements is/are correct?
(a) 2 only
(b) 1 and 3
(c) 2 and 3
(d) None

5. Consider the following :
1. Global Trust Bank has been amalgamated with the Punjab
National Bank.
2. The Second report of the Kelkar Committee dealing with direct
and indirect taxes has maintained its original recommendation
including the abolition of exemptions relating to housing loans.
Which of the statements is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

6. Which of the following is a recommendation of the task force on
direct taxes under the chairmanship of Dr Vijay L. Kelkar in the year

(a) Abolition of Wealth Tax
(b) Increase in the exemption limit of personal income to Rs 1.20
lakh for widows
(c) Elimination of standard deduction
(d) Exemption from tax on dividends and capital gains from the listed

Paper – 2004

1. Which one of the following was the largest IT software and
services exporter in India during the year 2002­03?

(a) Birlasoft
(b) Infosys Technologies
(c) Tata Consultancy Services
(d) Wipro Technologies

2. Assertion (A):
For the first time, India had no trade deficit in the year 2002­ 2003.
Reason (R):
For the first time, India’s exports crossed worth $ 50 billion in the
year 2002­03.

(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

3. The National Housing Bank, the apex institution of housing
finance in India, was set up as a wholly­ owned subsidiary of the
Reserve Bank of India.
2. The Small Industries Development Bank of India was established
as a wholly­owned subsidiary of the Industrial Development Bank of
Which of the statements given above is/ are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

4. Consider the following statements:
1. Reserve Bank of India was nationalised on 26 January, 1950.
2. The borrowing programme of the Government of India is handled
by the Department of Expenditure, Ministry of Finance.
Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

5. In the last one decade, which one among the following sectors
has attracted the highest Foreign Direct Investment inflows into

(a) Chemicals other than fertilisers
(b) Services sector
(c) Food processing
(d) Telecommunication

6. Consider the following statements :
1. The Oil Pool Account of Government of India was dismantled with
effect from 1.4.2002.
2. Subsidies on PDS kerosene and domestic LPG are borne by
Consolidated Fund of India.
3. An expert committee headed by Dr R. A. Mashelkar to formulate a
national auto fuel policy recommended that Bharat State­II Emission
Norms should be applied throughout the country by April 1, 2004.
Which of the statements given above are correct?

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

7. Which one of the following statements is correct?

(a) Under the Targeted Public Distribution System, the families
Below Poverty Line are provided 50 kg of foodgrains per month per
family at subsidised price.
(b) Under Annapurna Scheme, indigent senior citizens of 65 years of
age or above, eligible for National Old Age Pension but not getting
pension, can get 10 kg of food grains per person per month free of
(c) Ministry of Social Justice and Empowerment has a scheme in
which indigent people living in welfare institutions like orphanages
are given 15 kg of food grains per person per month at BPL rates.
(d) Ministry of Human Resource Development gives financial
support to Mid­day Meal Scheme for the benefit of class I to V
students in government or government­aided schools

8. Consider the following statements:
1. The loans disbursed to farmers under Kisan Credit Card Scheme
are covered under Rashtriya Krishi Beema Yojna of Life Insurance
Corporation of India.
2. The Kisan Credit Card holders are provided personal accident
insurance of Rs 50,000 for accidental death and Rs 25,000 for
permanent disability.
Which of the statements given above is/ are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

9. Consider the following statements:
1. National Thermal Power Corporation has diversified into
hydropower sector.
2. Power Grid Corporation of India has diversified into telecom
Which of the statements given above is/ are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

10. Consider the following statements:
1. Damodar Valley Corporation is the first multipurpose river valley
project of independent India.
2. Damodar Valley Corporation includes thermal and gas power
Which of the statements given above is/ are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Paper – 2003

1. Which one among the following countries has the lowest GDP
per capita?

(a) China
(b) India
(c) Indonesia
(d) Sri Lanka

2. Which one of the following statements is correct?

(a) India is the second largest producer of nitrogenous fertilisers in
the world
(b) India is the ninth largest steel producing county in the world
(c) India is the second largest producer of silk in the world
(d) India ranks third in the world in coal production

3. Among the following commodities imported by India during the
year 2001­02, which one was the highest in terms of Rupee value?

(a) Edible oil
(b) Fertilizers
(c) Organic and inorganic chemicals
(d) Pearls, precious and semi­precious stones

4. Assertion (A):
During the year 2001 ­ 02, the value of India’s total exports declined,
registering a negative growth of 2.17%.
Reason (R):
During the year 2001 ­ 02, negative growth in exports was witnessed
in respect of iron and steel, coffee, textiles and marine products.

(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

5. Consider the following statements:
1. In the last five years, Indian software exports have increased at a
compound annual growth rate of about 60%
2. The software and service industry in India registered an overall
growth of about 28% in rupee terms during the year 2001­2002.
Which of these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2

6. Consider the following statements
1. India’s import of crude and petroleum product during the year
2001­02 accounted for about 27% of India’s total imports.
2. During the year, 2001­02, India’s exports had increased by 10%
as compared to the previous year
Which of these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2

7. Assertion (A):
The new EXIM Policy is liberal, market oriented and favours global
Reason (R):
GATT has played a significant role in the liberalisation of economy.

(a) Both A and R are individually true and R is the correct
explanation of A
(b) Both A and R are individually true but R is NOT the correct
explanation of A
(c) A is true but R is false
(d) A is false but R is true

8. In India, the first bank of limited liability managed by Indians
and founded in 1881 was

(a) Hindustan Commercial Bank
(b) Oudh Commercial Bank
(c) Pubjab National Bank
(d) Punjab and Sind Bank

9. Debenture holder of a company are its

(a) Shareholders
(b) Creditors
(c) Debtors
(d) Directors

10. Which one of the following statements is correct with reference
to FEMA in India?

(a) The Foreign Exchange Regulation Act (FERA), was replaced by
Foreign Exchange Management Act (FEMA) in the year 2001
(b) FERA was given a sunset clause of one year till 31st May 2002
to enable Enforcement Directorate to complete the investigation of
pending issues
(c) Under FEMA, violation of foreign exchange rules has ceased to
be a criminal offence
(d) As per the new dispensation, Enforcement Directorate can arrest
and prosecute the people for the violation of foreign exchange rules

11. Consider the following statements:
1. The maximum limit of shareholding of Indian promoters in private
sector banks in India is 49 per cent of the paid up capital.
2. Foreign Direct Investment up to 49 per cent from all sources is
permitted in private sector banks in India under the automatic route.
Which to these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2

12. With reference to Government of India’s I decisions regarding
Foreign Direct Investment (FDI) during the year 2001­ 02, consider
the following statements:
1. Out of the 100% FDI allowed by India in tea sector, the foreign
firm would have to disinvest 33% of the equity in favour of an Indian
partner within four years.
2. Regarding the FDI in print media in India, the single largest Indian
shareholder should have a holding higher than 26%
Which of these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2

13. The government holding in BPCL is

(a) More than 70%
(b) Between 60% and 70%
(c) Between 50% and 60%
(d) Less than 50%

Paper – 2002

Q112 The Asia Pacific Economic Cooperation Forum was held in
the year 2001 in

(a) Bangkok
(b) Hongkong
(c) Jakarta
(d) Shanghai

2. Global capital­flows to developing countries increased
significantly during the nineties. In view of the East Asian financial crisis and Latin American experience, which type of inflow is good
for the host country?

(a) Commercial loans
(b) Foreign Direct Investment
(c) Foreign Portfolio Investment
(d) External Commercial Borrowings

3. Consider the following statements:
1. The World Intellectual Property Organisation (WIPO) is a
specialised agency of United Nations System of Organisations
2. WIPO has its headquarters at Rome
3. The Trade Related Aspects of Intellectual Property Rights
(TRIPS) Agreement is binding on all WTO members
4. Least developed country members of WTO are not required to
apply the provisions of TRIPS Agreements for a period of 20 years
from the general date of application of the Agreement
Which of these statements are correct?

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

4. “World Development Report” is an annual publication of

(a) United Nations Development Programme
(b) International Bank of Reconstruction and Development
(c) World Trade Organisation
(d) International Monetary Fund

5.In terms of value, which one of the following commodities
accounted for the largest agricultural exports by India during the
three year period from 1997­ 1998 to 1999­2000?

(a) Cereals
(b) Marine products
(c) Spices
(d) Tea

6. India has the maximum volume of foreign trade with

(a) USA
(b) Japan
(c) Germany
(d) UAE

7. Five Year Plan in India is finally approved by

(a) Union Cabinet
(b) President on the advice of Prime Minister
(c) Planning Commission
(d) National Development Council

8. Consider the following:
1. Currency with the public
2. Demand deposits with banks
3. Time deposits with banks
Which of these are included in Broad Money (M3) in India?

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

9. Among the following major stock exchanges of India, the
exchange which recorded highest turnover during the year 2000­01 is

(a) Bombay Stock Exchange
(b) Calcutta Stock Exchange
(c) Delhi Stock Exchange
(d) National Stock Exchange

10. Consider the following financial institution of India:
1. Industrial Finance Corporation of India (IFCI)
2. Industrial Credit and Investment Corporation of India (ICICI)
3. Industrial Development Bank of India (IDBI)
4. National Bank for Agriculture and Rural Development (NABARD)
The correct chronological sequence of the establishment of these
institutions is

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

11. Consider the following statements:
Full convertibility of the rupee may mean
1. its free float with other international currencies.
2. its direct exchange with any other international currency at any
prescribed place inside and outside the country.
3. it acts just like any other international currency.
Which of these statements are correct?

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

12. Which reference to the Wholesale Price Index (WPI), consider
the following statements:
1. The new WPI series with base 1993­94 = 100 became effective
from April 1998
2. In the new WPI series, became effective from 1 April 2000.
Statements 2 and 3 are correct
3. The weight for electricity has increased in the new WPI series
Which of these statements are correct ?

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

13. With reference to the Indian Public Finance consider the
following statements:
1. External liabilities reported in Union Budget are based on
historical exchange rates
2. The continued high borrowing has kept the real interest rates high
in the economy
3. The upward trend in the ratio of Fiscal Deficit to GDP in recent
years has an adverse effect to private investments.
4. Interest payments is the single largest component of the non­plan
revenue expenditure of the Union Government.
Which of these statements are correct ?

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

14. India’s external debt increased from US $98,158 million as at the end of March 2000 to US $100,225 million as at the end of
March 2001 due to increase in

(a) multilateral and bilateral debt
(b) rupee debt
(c) commercial borrowings and NRI deposits
(d) borrowing from International Monetary Fund

15. A country is said to be in debt trap if
(a) it has to abide by the conditionalities imposed by the
International Monetary Fund
(b) it has to borrow to make interest payments to on outstanding
(c) it has been refused loans or aid by creditors abroad
(d) the World Bank charges a very high rate of interest on
outstanding as well as new loans

16. Which reference to the Indian economy, consider the following
1. Agriculture, Forestry and Fishing
2. Manufacturing
3. Trade, Hotels Transport and Communication
4. Financing, Insurance, Real Estate and Business services
The decreasing order of the contribution of these sectors to the
Gross Domestic Product (GDP) at factor cost at constant prices
(2000­01) is

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

17. Consider the following statements:
The objectives of the National Renewal Funds set up in February
1992 were
1. to give training and counselling for workers affected by
retrenchment or VRS.
2. redeployment of workers
Which of these statements is/are correct?

(a) Neither 1 nor 2
(b) Both 1 and 2
(c) 1 only
(d) 2 only

18. With reference to power sector in India consider the following
1. Rural electrification has been treated as a Basic Minimum Service
under the Prime Minister’s Gramodaya Yojana.
2. 100 per cent Foreign Direct Investment in power is allowed
without upper limit
3. The Union Ministry of Power has signed a Memoranda of
Understanding with 14 states.
Which of these statements is/are correct?

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

19. Which reference to the government’s welfare schemes,
consider the following statements :
1. Under the Antyodaya Anna Yojana, the food grains are available
to the poorest of the poor families at Rs 2 per kg for wheat and Rs. 3
per kg for rice
2. Under the National Old Age Pension Scheme, the old and
destitute are provided Rs 75 per month as Central pension, in
addition to the amount provided by most State Governments.
3. Government of India has allocated 25 kg food grains per Below
Poverty Line family per month, at less than half the economic cost.
Which of these statements are correct ?

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

20. The Swarna Jayanti Shahari Rozgar Yojana which came into
operation from Dec. 1, 1997 aims to provide gainful employment to
the urban unemployed or underemployed poor but does not include

(a) Nehru Rozgar Yojana
(b) Urban Basic Services Programme
(c) Prime Minister’s Integrated Urban Poverty Eradication
(d) Prime Minister’s Rozgar Yojana

Paper – 2001

1. Consider the following organisations :
I. International Bank for Reconstruction and Development
II. International Finance Corporation
III. International Fund for Agricultural Development
IV. International Monetary Fund
Which of these are agencies of the United Nations ?

(a) I and II
(b) II and III
(c) III and IV
(d) I, II, III and IV

2. The earlier name of WTO was

(b) GATT
(d) OECD

3. The theme of the World Development Report, 2001 is

(a) From Plan to Market
(b) Knowledge for Development
(c) Attacking Poverty
(d) The State in the Changing World

4. The new series of Wholesale Price Index (WPI) released by the
Government of India is with reference to the base prices of

(a) 1981­82
(b) 1990­91
(c) 1993­94
(d) 1994­95

5. Consider the following :
I. Market borrowing
II. Treasury bills
III. Special securities issued to RBI
Which of these is/are component(s) of internal debt ?

(a) I only
(b) I and II
(c) II only
(d) I, II and III

6. Match List I with List II and select the correct answer using the codes
given below the Lists :
List I List II
(Term) (Explanation)
I. Fiscal
(A) Excess of Total Expenditure over Total Receipts
II. Budget
(B) Excess of Revenue Expenditure over Revenue Receipts
III. Revenue
(C) Excess of Total Expenditure over Total Receipts less
IV. Primary
(D) Excess of Total Expenditure over Total Receipts less
borrowings and Interest Payments

(a) I­C, II­A, III­B, IV­D
(b) I­D, II­C, III­B, IV­A
(c) I­A, II­C, III­B, IV­D
(d) I­C, II­A, III­D, IV­B

7. Consider the following taxes :
I. Corporation tax
II. Customs duty
III. Wealth tax
IV. Excise duty
Which of these is/are indirect taxes ?

(a) I only
(b) II and IV
(c) I and III
(d) II and III

8. The most appropriate measure of a country’s economic growth is its

(a) Gross Domestic Product
(b) Net Domestic Product
(c) Net National Product
(d) Per Capita Real Income

9. The term National Income represents

(a) Gross National Product at market prices minus depreciation
(b) Gross National Product at market prices minus depreciation net factor
income from abroad
(c) Gross National Product at market prices minus depreciation and indirect
taxes subsidies
(d) Gross National Product at market prices minus net factor income from

10. The largest share of Foreign Direct Investment (1997­2000) went to

(a) Food and food­product sector
(b) Engineering sector
(c) Electronics and electric equipment sector
(d) Service sector

11. Which of the following committees examined and suggested Financial
Sector Reforms ?

(a) Abid Hussain Committee
(b) Bhagwati Committee
(c) Chelliah Committee
(d) Narasimham Committee

Paper – 2000

1. Consider the following statements :
The Ministerial Meeting of the WTO held in December 1999 was
unsuccessful because it attempted to link trade with
I. labour­related issues.
II. environment related issues.
III. terrorism related issues.
IV. debt­related issues.
Which of these statements are correct ?

(a) I, III and IV
(b) I and II
(c) II and III
(d) II and IV

2. Which one of the following countries occupies the first place in
the “Global Competitive Report” of World Economic Forum ?

(a) USA
(b) Singapore
(c) Hong Kong
(d) France

3. Assertion (A) :
The rate of growth of India’s exports has shown an appreciable
increase after 1991.
Reason (R) :
The Govt. of India has resorted to devaluation.

(a) Both A and R are true, and R is the correct explanation of A
(b) Both A and R are true, but R is not a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true

4. Consider the following statements : The Indian rupee is fully
I. in respect of Current Account of Balance of Payment.
II. in respect of Capital Account of Balance of Payment.
III. into gold.
Which of these statements is/are correct ?

(a) I alone
(b) III alone
(c) I and II
(d) I, II and III

5. Gilt­edged market means

(a) bullion market
(b) market of Government securities
(c) market of guns
(d) market of pure metals

6. Resurgent India Bonds were issued in US Dollar, Pound
Sterling and

(a) Japanese Yen
(b) Deutsche Mark
(c) Euro
(d) French Franc

7. A rise in ‘SENSEX’ means

(a) a rise in prices of shares of all companies registered with
Bombay Stock Exchange
(b) a rise in prices of shares of all companies registered with
National Stock Exchange
(c) an overall rise in prices of shares of group of companies
registered with Bombay Stock Exchange
(d) a rise in prices of shares of all companies belonging to a group of
companies registered with Bombay Stock Exchange

8. The growth rate of per capita income at current prices is higher
than that of per capita income at constant prices, because the latter
takes into account the rate of

(a) growth of population
(b) increase in price level
(c) growth of money supply
(d) increase in the wage rate

9. In an open economy, the national income (Y) of the economy is:
(C, I, G, X, M stand for Consumption, Investment, Govt.
Expenditure, total exports and total imports respectively.)

(a) Y = C + I + G + X
(b) Y = C + I + G ­ X + M
(c) Y = C + I + G + (X ­ M)
(d) Y = C + I ­ G + X ­ M

10. Economic liberalisation in India started with

(a) substantial changes in industrial licensing policy
(b) the convertibility of Indian rupee
(c) doing away with procedural formalities for foreign direct investment
(d) significant reduction in tax rates

11. Match List I with List II and select the correct answer using the
codes given below the Lists:
I.  Development Programme  (A) UN India Human Development
II. National Council of
Applied Economic Research     (B) India Development Report
III. Indira Gandhi Institute
of Development Research     (C) World Development Report
IV.  World Bank                     (D) Human Development Report

(a) I­D, II­A, III­B, IV­C
(b) I­D, II­B, III­A, IV­C
(c) I­B, II­C, III­D, IV­A
(d) I­B, II­A, III­D, IV­C

12. Match List I with List II and select the correct answer using the
codes given below the Lists :
List I List II
I. Boom (A) Business activity at high level with increasing income,
output and employment at macro level
(B) Gradual fall of income, output and employment with
business activity in a low gear
(C) Unprecedented level of under employment and
unemployment, drastic fall in income, output and
(D) Steady rise in the general level of prices, income,
output and employment

(a) I­A, II­B, III­C, IV­D
(b) I­A, II­B, III­D, IV­C
(c) I­B, II­A, III­D, IV­C
(d) I­B, II­A, III­C, IV­D

Paper – 1999

1. The economic crisis in the latter half of 1990s most seriously
affected Indonesia, Thailand, Malaysia and South Korea. The cause
of the crisis was

(a) mismanagement of the financial resources and financial sector,
in general
(b) the prolonged over­valuation of local currencies vis­a­vis the
western currencies
(c) the downswing and recession in the western economies which
earlier provided export market to these export­ oriented countries
(d) None of the above

2. Match List I with List II and select the correct answer using the
codes given below the Lists :

List I List II
I. WTO (A) Provides loans to address short­term balance of payment
II. IDA (B) Multi­lateral trade negotiation body
III. IMF (C) Sanction of soft loans
(D) Facilitating lendings and borrowings for reconstruction and

(a) I­B, II­C, III­D, IV­A
(b) I­B, II­C, III­A, IV­D
(c) I­C, II­B, III­D, IV­A
(d) I­C, II­B, III­A, IV­D

3. Consider the following statements about the European Union :
I. The European Union was known earlier as the European
II. The Single European Act (1986) and the Maastricht Treaty were
milestones in its formation.
III. Citizens of European Union countries enjoy dual citizenship.
IV. Switzerland is a member of the European Union.
Which of the above statements are correct ?

(a) II and IV
(b) I and III
(c) III and IV
(d) I, II and III

4. Which one of the following statements is not correct ?
Dinar/New dinar is the currency of

(a) Sudan
(b) Yugoslavia
(c) UAE
(d) Tunisia

5. From the balance sheet of a company, it is possible to

(a) judge the extent of profitability of the company
(b) assess the profitability and size of the company
(c) determine the size and composition of the assets and liabilities of
the company
(d) determine the market share, debts and assets of the company

6. Assertion (A):
Devaluation of a currency may promote export.
Reason (R):
Price of the country’s products in the international market may fall
due to devaluation.

(a) Both A and R are true, and R is the correct explanation of A
(b) Both A and R are true, but R is not a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true

7.The Standing Committee of State Finance Ministers
recommended in January 2000 uniform rates across the States in
respect of

(a) value­added tax
(b) sales tax
(c) stamp duty and registration fees
(d) agricultural income­tax

8. Which one of the following statements regarding the levying,
collecting and distribution of Income Tax is correct ?
(a) The Union levies, collects and distributes the proceeds of
income­tax between itself and the States
(b) The Union levies, collects and keeps all the proceeds of incometax
to itself
(c) The Union levies and collects the tax but all the proceeds are
distributed among the States
(d) Only the surcharge levied on income­tax is shared between the
Union and the States

9. Assertion (A):
Fiscal deficit is greater than budgetary deficit.
Reason (R):
Fiscal deficit is the borrowings from the Reserve Bank of India plus
other liabilities of the Government to meet its expenditure.

(a) Both A and R are true, and R is the correct explanation of A
(b) Both A and R are true, but R is not a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true

10. Persons below the poverty line in India are classified as such
based on whether

(a) they are entitled to a minimum prescribed food basket
(b) they get work for a prescribed minimum number of days in a year
(c) they belong to agricultural labourer household and the scheduled
caste/tribe social group
(d) their daily wages fall below the prescribed minimum wages

11. The Employment Assurance Scheme envisages financial
assistance to rural areas for guaranteeing employment to at least
(a) 50 per cent of the men and women seeking jobs in rural areas
(b) 50 per cent of the men seeking jobs in rural areas
(c) one man and one woman in a rural family living below the
poverty line
(d) None of the above

12. Which one of the following is the objective of National Renewal
Fund ?

(a) To safeguard the interests of workers who may be affected by
technological upgradation of industry or closure of sick units
(b) ITO develop the core sector of the economy
(c) For the development of infrastructure such as energy, transport,
communications and irrigation
(d) For human resource development such as full literacy,
employment, population control, housing and drinking water

13. Since 1980, the share of the tertiary sector in the total GDP of
India has

(a) shown an increasing trend
(b) shown a decreasing trend
(c) remained constant
(d) been fluctuating

14. The product life cycle from inception to demise is shown in the
graph. Match List I with List II and select the correct answer using
the codes given below the Lists :
List I
I. Product Development
II. Maturity
III. Growth
IV. Introduction
List II

(a) I­A, II­D, III­B, IV­C
(b) I­A, II­D, III­C, IV­B
(c) I­D, II­A, III­B, IV­C
(d) I­D, II­A, III­C, IV­B

Paper – 1998

1. The currency of the proposed European Monetary Union will be

(a) Dollar
(b) Euro
(c) Guilder
(d) Mark

2. Consider the following statements :
The price of any currency in international market is decided by the
I. World Bank.
II. demand for goods/services provided by the country concerned.
III. stability of the government of the concerned country.
IV. economic potential of the country in Q.
Of these statements :

(a) I, II, III and IV are correct
(b) II and III are correct
(c) III and IV are correct
(d) I and IV are correct

3. Assertion (A):
The United States of America has threatened to ask the World
Trade Organisation (WTO) to apply sanctions against the
developing countries for the non­observance of ILO conventions.
Reason (R):
The United States of America itself has adopted and implemented
those ILO conventions.

(a) Both A and R are true, and R is the correct explanation of A
(b) Both A and R are true, but R is NOT a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true

4. Which of the following pairs are correctly matched ?
I. Dow Jones : New York
II. Hang Seng : Seoul
III. FTSE ­ 100 : London
Select the correct answer using the codes given below:

(a) I, II and III
(b) II and III
(c) I and II
(d) I and III

5. The economist who was associated with the WTO draft document is

(a) A.K. Sen
(b) T.N. Srinivasan
(c) J.N. Bhagwati
(d) Avinash Dixit

6. According to the World Development Report, low income
economies are those for which the per capita GNP in 1994 was

(a) US $ 925 or less
(b) US $ 825 or less
(c) US $ 725 or less
(d) US $ 525 or less

7. Nobel Prize in Economics for the year 1997 was awarded for
contribution in the area of

(a) International Economics
(b) Financial Economics
(c) Public Economics
(d) Development Economics

8. Which one of the following is the correct sequence of
decreasing order of the given currencies in terms of their value in
Indian Rupees ?

(a) US dollar, Canadian dollar, New Zealand dollar, Hong Kong dollar
(b) US dollar, New Zealand dollar, Canadian dollar, Hong Kong dollar
(c) US dollar, Hong Kong dollar, New Zealand dollar, Canadian dollar
(d) US dollar, Hong Kong dollar, Canadian dollar, New Zealand dollar

9. Which one of the following regions of the world supplies the
maximum of our imported commodities (in terms of rupee value)?

(a) Africa
(b) America
(c) Asia and Oceania
(d) Europe

10. The current price index (base 1960) is nearly 330. This
means that

(a) all items cost 3.3 times more than what they did in 1960
(b) the prices of certain selected items have gone upto 3.3 times
(c) weighted mean of prices of certain items has increased 3.3 times
(d) gold price has gone up 3.3 times

11. The banks are required to maintain a certain ratio between
their cash in hand and total assets. This is called

(a) SBR (Statutory Bank Ratio)
(b) SLR (Statutory Liquid Ratio)
(c) CBR (Central Bank Reserve)
(d) CLR (Central Liquid Reserve)

12. The accounting year of the Reserve Bank of India is

(a) April-­March
(b) July­-June
(c) October-­September
(d) Jannuary­-December

13. Capital Account Convertibility of the Indian Rupee implies

(a) that the Indian Rupee can be exchanged by the authorised
dealers for travel
(b) that the Indian Rupee can be exchanged for any major currency
for the purpose of trade in goods and services
(c) that the Indian Rupee can be exchanged for any major currency
for the purpose of trading financial assets
(d) None of the above

14. Economic Survey in India is published officially, every year by the

(a) Reserve Bank of India
(b) Planning Commission of India
(c) Ministry of Finance, Government of India
(d) Ministry of Industries, Government of India

15. The misery index is the sum of a country’s unemployment and inflation rate. The higher the index, the more miserable is the
country to live in. The figure given below is the Misery Index for
various countries in Europe :
Which of the following conclusions can be drawn from the misery
index given above ?
I. Britain is the most miserable country to live in.
II. The inflation rate in Spain is less than that in Belgium and Britain.
III. Italy and France seem to have almost identical unemployment
IV. The higher the misery index, the higher the inflation rate.
Select the correct answer using the codes given below:

(a) I alone
(b) II and III
(c) I, II, III and IV
(d) None of the above

16. Some time back, the Government of India, decided to delicense
‘white goods’ industry. ‘White goods’ include

(a) stainless steel and aluminium utensils
(b) milk and milk products
(c) items purchased for conspicuous consumption
(d) soaps, detergents and other mass consumption goods

17. A consumer is said to be in equilibrium, if

(a) he is able to fulfil his need with a given level of income
(b) he is able to live in full comforts with a given level of income
(c) he can fulfil his needs without consumption of certain items
(d) he is able to locate new sources of income

18. The supply­side economics lays greater emphasis on the point
of view of

(a) producer
(b) global economy
(c) consumer
(d) middle­man

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