Indian Economy

1. Deficit financing leads to inflation in general, but it can be checked if A. government expenditure leads to increase in the aggregate supply in ratio of aggregate demand B. only aggregate demand is increased C. all the expenditure is denoted national debt payment only D. All of the above

government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
only aggregate demand is increased
all the expenditure is denoted national debt payment only
All of the above

Detailed SolutionDeficit financing leads to inflation in general, but it can be checked if A. government expenditure leads to increase in the aggregate supply in ratio of aggregate demand B. only aggregate demand is increased C. all the expenditure is denoted national debt payment only D. All of the above

2. If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits A. will decrease B. will increase C. will neither increase nor decrease D. None of the above

will decrease
will increase
will neither increase nor decrease
None of the above

Detailed SolutionIf all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits A. will decrease B. will increase C. will neither increase nor decrease D. None of the above

3. Depreciation means A. closure of a plant due to lock out B. closure of a plant due to labour trouble C. loss of equipment over time due to wear and tear D. destruction of a plant in a fire accident

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

Detailed SolutionDepreciation means A. closure of a plant due to lock out B. closure of a plant due to labour trouble C. loss of equipment over time due to wear and tear D. destruction of a plant in a fire accident

4. 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 I=interest payments II=subsidies III=defence IV=irrigation A. I, II B. I C. I, II, III D. II, III, IV

I, II
I
I, II, III
II, III, IV

Detailed SolutionSince 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 I=interest payments II=subsidies III=defence IV=irrigation A. I, II B. I C. I, II, III D. II, III, IV

5. In the last one decade, which one among the following sectors has attracted the highest foreign direct investment inflows into India? A. Chemicals other than fertilizers B. Services sector C. Food processing D. Telecommunication

Chemicals other than fertilizers
Services sector
Food processing
Telecommunication

Detailed SolutionIn the last one decade, which one among the following sectors has attracted the highest foreign direct investment inflows into India? A. Chemicals other than fertilizers B. Services sector C. Food processing D. Telecommunication

6. Devaluation of a currency means A. fall in exchange value of a country by market forces B. reduction in external value/exchange value of currency by the government C. reduction in currency value due to wear and tear D. all of the above

fall in exchange value of a country by market forces
reduction in external value/exchange value of currency by the government
reduction in currency value due to wear and tear
all of the above

Detailed SolutionDevaluation of a currency means A. fall in exchange value of a country by market forces B. reduction in external value/exchange value of currency by the government C. reduction in currency value due to wear and tear D. all of the above

7. Gilt-edged market means A. bullion market B. market of government securities C. market of guns D. market of pure metals

bullion market
market of government securities
market of guns
market of pure metals

Detailed SolutionGilt-edged market means A. bullion market B. market of government securities C. market of guns D. market of pure metals

8. ICICI is the name of a A. chemical industry B. bureau C. corporation D. financial institution

chemical industry
bureau
corporation
financial institution

Detailed SolutionICICI is the name of a A. chemical industry B. bureau C. corporation D. financial institution

9. Development expenditure of the Central government does not include A. defence expenditure B. expenditure on economic services C. expenditure on social and community services D. grant to states

defence expenditure
expenditure on economic services
expenditure on social and community services
grant to states

Detailed SolutionDevelopment expenditure of the Central government does not include A. defence expenditure B. expenditure on economic services C. expenditure on social and community services D. grant to states

10. Rice, Millet (Jawar-Bajra ), Maize and cotton is the group which belongs to: A. Rabi crop B. Kharif crop C. Both A and B D. None of the above

Rabi crop
Kharif crop
Both A and B
None of the above

Detailed SolutionRice, Millet (Jawar-Bajra ), Maize and cotton is the group which belongs to: A. Rabi crop B. Kharif crop C. Both A and B D. None of the above

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