Indian Economy Practice test by Studybizz

1. Which of the following is part of India’s ‘rupee denominated debt?

2. Select the correct one/ones about the System of Rice Intensification(SRI) technique being promoted in India by the Ministry of Agriculture, using the code given below:

1.It is promoted under World Bank assisted project Irrigated Agriculture Modernized Water Bodies Restoration and Management(IAMWARM).

2.It economies use of seed and fertilizers, labour, etc., and hence increases productivity.

3. Which one of the following statements is/are incorrect? Select your answer using the ecode given below:

1. The Committee on Financial Sector reforms suggested the RBI to pay interest on the Cash Reserve Ratio maintained by the commercial banks with RBI-it has been followed by the RBI

2.GOI has started paying market-based interest on its borrowings from the commercial banks by mortgaging the G-Secsas was suggested by the Committee on Financial Sector reforms.

4. Inclination of the GoI towards ‘indicative planning’means

1.Lesser economic role for itself and broader economic private players

2.Redefining the role of the State in the economic system

3.’Rolling back’ of the State from the economy and going for ‘strategic disinvestment’. Select the correct code given below:

5. Which of the following is correct about the term ]’capital consumption?

6. Select the correct statement/statements regarding the objective of the ‘pension sector reforms’ in the country, using the code given below:

1. It facilitates the flow of long-term savings for development

2.It helps establish a credible and sustainable social security system in the country.

7. Which of the following is/are non-debt flow/flows of capital between using the code given below

1.ECBs. short-term loans from the IMF and external aids

2.Portfolio investment, FDI and Private Remittances

8. A higher GDP per capita may not mean that quality of life really improved because____

1.it shows about the gross income of the people just as an average and does not mean the same translating at the micro level

2.the concept of per capita income lacks the element of inclusiveness

9. Which of the policy decision/decisions is/are likely come from the Government during the times of ‘recession’ in the economy?Select answer using the code given below:

1.Cut in direct taxes, more government spending side by side cheaper credit policies

2.Increase in indirect taxes, higher subsidies side by side lower fiscal deficits

10. Select the correct statements related to the ‘Financial Stability and Development Council’, using the code given below:

1.It is headed by the Union Finance Minister

2.It is a body of the NITI Aayog which includes the PM and the CMs of the states and heaed of the UTs.

3.It monitors macro-prudential supervision supervision of the economy

11. Select the correct ‘mission’ of the NABARD___

12. Official Development Assistance, external concessional loans, India get, can be used by—-

13. VAT method of tax collection has got some in-built arrangement by which—

1. It encourages growth and checks inflation
2. It encourages tax compliance, discourages tax evasion Select the answer using the code given below

14. Select the correct one/ones about the system of tax collection in the case of the ‘GST’ in India, using the given below:

1.It is a multi-point tax system with the end-user finally bearing the burden of the tax

2. It has no cascading impact on the prices of the goods and services

3.It is pro-poor without being anti-rich.

15. Consider the following statements related to the Budgeting process of the Government of India__

1.Whole revenue expenditure is considered non-plan expenditure

2. Capital expenditure on defense is counted as plan expenditure

3. All capital expenditures are counted as plan expenditure

4.Plan expenditure has part of it as revenue expenditure Select the correct ones from the list given above, using the code given below:

16. Consider the following statements regarding India’s Minimum Reserve System and select the incorrect one/ones using the code given below:

1.In Minimum Reserve System, RBI had to keep a minimum reserve of Gold worth Rs.115 crore and rest in Indian Rupees.

2.The Minimum Requirement of Foreign Securities was diluted when Minimum Reserve System was launched

17. What is incorrect about the ‘Assigned Revenue’ in India? Select your answer using the code given below:

1.The term refers to various tax/duty/cess/ surcharge/levy etc., proceeds of which are collected by State Governments on behalf of local bodies and are adjusted with/assigned to the local bodies

2.Such revenues are still to commence in India once the State Finance Commissions recommend in this regard.

18. Select the incorrect one/ones about the Agricultural Census in India, using the code given below:

1. Agricultural Census, undertaken by the Ministry of Agriculture, takes place in India after every four years
2. A partially sponsored scheme of Centre primary(fresh data) and secondary (already published) and data on structure of Indian agriculture are collected under this operation with the help of State Governments.

19. What is correct about ‘bancassurance’ in India? Select your answer using the code given below:

1. It is the sale of insurance policies through banks as a low-cost option of distribution.
2. In it, banks tie up with one insurance company in the life, non-life and health insurance spaces but only in a specified number of state

20. Which of the following is the aim of PM Mudra Yojana?