General knowledge Questions and Answers
INDIAN ECONOMY QUESTIONS PART -1
Q1. Consider the following statement : Inflation is an increase in the average level of prices . This implies that
1. The price of essential commodities outstrips income
2. Money supply grows at a higher rate than GDP in real terms
3 The exchange rate of a currency falls
4. Fiscal deficit exceeds balance of payment deficit .
select the correct answer from the codes given below :
a)1, 2 and 4 only
b) 2 only
c) 1 and 4 only
d) 1,2,3 and 4
Ans: b) 2 only
Q2. The existence of Black Money in the economy is recognized as a threat to the indian economic system .Which of the following features is /are attributes of Black Money?
1. It refers to money generated through illegitimate means such as drug trade, crime,terrorism and corruption.
2.It includes counterfeit currency notes in circulation .
3. Wealth may have been generated through legitimate means but income thereon has been not declared nor the taxes due paid to the government.
4 None of the above.
select the correct answer from the codes given below:
a) only 4
b) 1,2 and 3 only
c) 3 only
d) 1 and 3 onlyo
Ans : d) 1 and 3 only
Q3. Which of the following is not a reason for cost -push inflation?
a) The payment of dearness allowance to employees
b) The existence of a large parallel economy
c) Fluctuations in agricultural and industrial output
d) Excessive indirect taxation
Ans: a) The payment of dearness allowance to employees
Q4. Among the supply side measures to contain inflation is
a) Postponing public expenditure
b) Mopping up excess liquidity through taxation
c) Credit control measures of RBI
d) Maintaining price levels through an effective PDS
Ans:d) Maintaining price levels through an effective PDS
Q5. The purpose of central and state warehousing corporations is to
a) Distribute fertilizers and seeds
b) To refinance farm credit
c) Provide storage facility
d) Process agricultural products
Ans: c) Provide storage facility
Q1. Consider the following statement : Inflation is an increase in the average level of prices . This implies that
1. The price of essential commodities outstrips income
2. Money supply grows at a higher rate than GDP in real terms
3 The exchange rate of a currency falls
4. Fiscal deficit exceeds balance of payment deficit .
select the correct answer from the codes given below :
a)1, 2 and 4 only
b) 2 only
c) 1 and 4 only
d) 1,2,3 and 4
Ans: b) 2 only
Q2. The existence of Black Money in the economy is recognized as a threat to the indian economic system .Which of the following features is /are attributes of Black Money?
1. It refers to money generated through illegitimate means such as drug trade, crime,terrorism and corruption.
2.It includes counterfeit currency notes in circulation .
3. Wealth may have been generated through legitimate means but income thereon has been not declared nor the taxes due paid to the government.
4 None of the above.
select the correct answer from the codes given below:
a) only 4
b) 1,2 and 3 only
c) 3 only
d) 1 and 3 onlyo
Ans : d) 1 and 3 only
Q3. Which of the following is not a reason for cost -push inflation?
a) The payment of dearness allowance to employees
b) The existence of a large parallel economy
c) Fluctuations in agricultural and industrial output
d) Excessive indirect taxation
Ans: a) The payment of dearness allowance to employees
Q4. Among the supply side measures to contain inflation is
a) Postponing public expenditure
b) Mopping up excess liquidity through taxation
c) Credit control measures of RBI
d) Maintaining price levels through an effective PDS
Ans:d) Maintaining price levels through an effective PDS
Q5. The purpose of central and state warehousing corporations is to
a) Distribute fertilizers and seeds
b) To refinance farm credit
c) Provide storage facility
d) Process agricultural products
Ans: c) Provide storage facility