Indian Economy Practice Test Part-4 by studybizz

1. Income tax in India is:

1.Progressive and anti-rich

2.Proportional and pro-poor

3.Regressive and anti-poor Select the answer using the code given below:

2. Purchase tax was recently in newsselect the correct statements about it, using the code given below:

1.It has been submitted in the newly launched GST

2.It was paid by traders and manufacturers on their purchases

3. Select the correct reason/reasons why the governments impose taxes, using the code given below.
1.To redistribute the income in the economy
2.To subsidize various private goods

4. Which of the following may be considered correct about ‘zero-based budgeting’?

5. Select the incorrect one about ‘recession’ as it is perceived in India.

6. Select the correct one/ones about ‘net income’ of a corporate body – by using code given below:

1.It is the balance of a company’s total income and its total expenditure

2.The profit of a company after paying corporate tax

7. How can a foreign company set up business operations in India? Select the correct code given below:

1.By setting up a company under the companies Act, 1956, as a joint venture or Wholly Owned Subsidiary.

2.By setting up a Liaison Office/ Representative Office or a Project Office or a Branch Office of the foreign company

8. Consider the following statements related to certain concepts of economic management which keep frequently appearing in the new__

1.Falling share of industry in the GDP is known as de industrialization

2.Falling saving rate is called as dissaving

3.Disgrorgement is a form of money laundering

4.Demerger is creating more companies out of one company Select the correct ones from list given above, using the code given below:

9. Select the correct statements about ‘countervailing duty’ using the code

given below:

1.A tax imposed on import by the importing country to neutralize

the benefit of export subsidies offered by the exporting

country.

2.It is called anti-dumping duty also and it does not come under the preview of the WTO

10. Select the correct one/ones about the re-insurance market in India using the code given below:

1.There is a single re-insurer in the Indian insurance industry

2.IRDA itself functions as the re-insurer in India

11. Select the incorrect one/ones about the public sector insurance companies in India using the code given below:

1.There are 5 public sector companies involved in offering various general insurance products in India today.

2.There are two dedicated public sector agriculture insurance companies in India today.

12. Select the incorrect function of the Export Credit Guarantee Corporation (ECGC):

13. Select the correct one/ones out of the statements given below using the code given below:

1.Equity capital is the same as ordinary share capital

2.A new company set up by existing companies with track record of atleast five years of consistent profitability is allowed by the SEBI guidelines to issue shares at a premium

3.Money mobilized via premiums is invested in the company

14. What is incorrect about a rights issue?

15. Match List-I with List-2 correctly and select your answer using the code given below:

List-I(Share Index)

A.Kosdaq

B.Bovespa

C.Merval

D.SSE Composite

List-II(Countries)

1.Argentina

2.China

3.Brazil

4.S.Korea

16. Consider the following statements about the idea of ‘micro-finance’ in india and select the corret ones using the code given below:

1.Micro-finance is a small-scale financial intermediation, inclusive of savings, credit insurance, business services and technical support provided to the needy borrower

2.The trust of the micro finance initiative is to channelize production and consumption credit in multiple doses based on the obsorption capacity of the propective borrower

3.It has evolved through following different models at different times- a ‘charity based model’ to a thrift-based mode’ and

finally to the ‘trust and creditworthiness model’

4.It was in Australia where evolved the link between microfinance institutions and the formal financial institutions

17. Tourism industry in India is quite small compared to many other countries in terms of its potential and size. Which one of the following statements is correct in this regard?Select your answer using the code given below:

1.India has been called by the western tourists as a country of heat and dust

2.India has not marketed its tourism sector methodically.

3.The infrastructural bottlenecks and the law and order situation together with terrorism have been the other reasons

18. To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare—

19. In India the term National Income represents:

20. The supply-side economics, which always gets attention in Indian, lays greater emphasis on the point of view of——