Q.1

In the last one decade, which one among the following sectors has attracted the highest foreign direct investment inflows into India?

  • Chemicals other than fertilizers
  • Services sector
  • Food processing
  • Telecommunication
Q.2

Which of the following is the most appropriate cause of exports surplus?

  • Country's exports promotion value
  • Country's stringent import policy
  • Developments in national and international markets
  • None of the above
Q.3

Devaluation of currency will be more beneficial if

  • prices of domestic goods remain constant
  • prices of exports remain constant
  • prices of imports remains constant
  • prices of exports rise proportionately
Q.4

In pursuance with the recommendations of Narsimhan Committee, the RBI has framed new guidelines

  • to govern entry of new private sector banks to make the banking sector more competitive
  • to reduce the freedom given to banks to rationalize their existing branch network
  • to setup more foreign exchange banks
  • to lend more easily for industrial development
Q.5

Short-term finance is usually for a period ranging up to

  • 5 months
  • 10 months
  • 12 months
  • 15 months
Q.6

The central co-operative banks are in direct touch with

  • farmers
  • state co-operative banks
  • land development banks
  • central government
Q.7

The ARDC is now a branch of the

  • RBI
  • NABARD
  • IDBI
  • SDBI
Q.8

Deficit financing means that the government borrows money from the

  • RBI
  • local bodies
  • big businessmen
  • IMF
Q.9

On which one of the followings is the benefits received principle of taxation to achieve optimality bases?

  • Marginal benefit received
  • Total benefit received
  • Average benefit received
  • Ability to pay for the benefit
Q.10

If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to

  • increase it
  • decrease it
  • no impact
  • None of the above
Q.11

Of the gross tax revenue of the Union Government the indirect taxes account for nearly

  • 70 per cent
  • 75 percent
  • 65 percent
  • 60 percent
Q.12

Which of the following is the first Indian private company to sign an accord with Government of Myanmar for oil exploration in two offshore blocks in that country?

  • Reliance Energy
  • Essar Oil
  • GAIL
  • ONGC
Q.13

In India, which one among the following formulates the fiscal policy?

  • Planning Commission
  • Ministry of Finance
  • Finance Commission
  • The Reserve Bank of India
Q.14

The first wholly Indian Bank was set up in

  • 1794
  • 1894
  • 1896
  • 1902
Q.15

Devaluation of currency leads to

  • fall in domestic prices
  • increase in domestic prices
  • no impact on domestic prices
  • erratic fluctuations in domestic prices
Q.16

Revenue of the state governments are raised from the following sources, except

  • entertainment tax
  • expenditure tax
  • agricultural income tax
  • land revenue
Q.17

One of the reasons for India's occupational structure remaining more or less the same over the years has been that

  • investment pattern has been directed towards capital intensive industries
  • productivity in agriculture has been high enough to induce people to stay with agriculture
  • ceiling on land holdings have enabled more people to own land and hence their preference to stay with agriculture
  • people are largely unaware of the significance of transition from agriculture to industry for economic development
Q.18

Which of the following items would not appear in a company's balance sheet?

  • Value of stocks of raw materials held
  • Total issued capital
  • Revenue from sales of the company's products
  • Cash held at the bank
Q.19

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

  • Statutory Bank Ratio (SBR)
  • Statutory Liquid Ratio (SLR)
  • Central Bank Reserve (CBR)
  • Central Liquid Reserve (CLR)
Q.20

The budget deficit means

  • the excess of total expenditure, including loans, net of lending over revenue receipts
  • difference between revenue receipts and revenue expenditure
  • difference between all receipts and all the expenditure
  • fiscal deficit less interest payments
Q.21

States earn maximum revenue through

  • land revenue
  • custom revenue
  • commercial taxes
  • excise duties on intoxicants
Q.22

Sincethe RBI's responsibility with respect to regional rural banks was transferred to

  • ARDC
  • SBI
  • NABARD
  • PACs
Q.23

In India, the first bank of limited liability manages by Indians and founded inwas

  • Hindustan Commercial Bank
  • Oudh Commercial Bank
  • Punjab National Bank
  • Punjab and Sind Bank
Q.24

How many banks were nationalized in 1969?

  • 16
  • 14
  • 15
  • 20
Q.25

Devaluation of a currency means

  • reduction in the value of a currency vis-a-vis major internationally traded currencies
  • permitting the currency to seek its worth in the international market
  • fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies
  • fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners
Q.26

In the second nationalization of commercial banks, ___ banks were nationalized.

  • 4
  • 5
  • 6
  • 8
Q.27

In India, inflation measured by the

  • Wholesale Price Index number
  • Consumers Price Index for urban non-manual workers
  • Consumers Price Index for agricultural workers
  • National Income Deflation
Q.28

Since independence, both development and non-development expenditures have increased; the increase in the former being a little more than in the other. Non-development expenditure involves

  1. interest payments
  2. subsidies
  3. defence
  4. irrigation

  • I, II
  • I
  • I, II, III
  • II, III, IV
Q.29

The annual yield from which of the following Union Government taxes is the highest?

  • Custom duties
  • Corporation tax and income tax
  • Inheritance tax, wealth tax, interest tax and gift tax
  • Excise duties
Q.30

Depreciation means

  • closure of a plant due to lock out
  • closure of a plant due to labour trouble
  • loss of equipment over time due to wear and tear
  • destruction of a plant in a fire accident
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