Important questions on economy

#NCERT Class 10 Economics

1. Right to Information Act came into existence in.
a. 2004
b. 2005
c. 2006
d. 2009
Answer: b
2. SEZs stand for
a. Special Electricity Zones
b. Southern Electricity Zones
c. Special Economic Zones
d. None
Answer: c
3. World Trade Organisations aim is to liberalise
a. International Trade
b. Domestic Trade
c. Trade
d. None
Answer: a
4. Tax on import is an example of
a. Growth impediment
b. Trade barrier
c. Foreign trade
d. None
Answer: b
5. Globalisation means .. the domestic economy to the rest of the world.
a. Disintegration
b. Opening up
c. Inviting
d. Degrading
Answer: b
6. Grameen Bank of Bangladesh is founded by..
a. Prof.M. Yunis
b. Prof. A. Sen
c. Dr M.M.Singh
d. Ms T.Nasreen
Answer: a

7. Banks and Cooperative sector are included in which sector loan?

a. Formal sector
b. In-formal sector
c. Credit sector
d. Savings sector
Answer: a
8. In India, who issues the currency notes on behalf of the central government?
a. Reserve Bank of India
b. State Bank of India
c. Finance Minister of India
d. None
Answer: a
9. Under the National Rural Employment Guarantee Act 2005, work has been guaranteed for -------days.
a. 100
b. 200
c. 300
d. 400
Answer: a
10. The share of tertiary sector to the GDP has increased but the contribution of which sector to
employment is highest at present-----------a. Primary
b. Tertiary
c. Secondary
d. None of these
Answer: a
11. In GDP, the letter D stands for-----------a. Domestic
b. Depression
c. Development
d. Deduction
Answer: a
12. Primary Sector is also known as----------------.
a. Agriculture and its related activities
b. Agriculture
c. Economy
d. Dairy
Answer: a

13. Secondary Sector is also known as---------------a. Industrial Sector

b. manufacturing
c. restructuring
d. None of these
Answer: a
14. Tertiary Sector is also known as---------------a. Services Sector
b. Hotel and restaurant
c. Trade
d. None of these
Answer: a
15. Per capita income refers to :a. Whole income
b. Average income
c. National Income
d. None of these
Answer: b
16. Literacy measures the proportion of literate population in the -----------age group.
a. 5 and above
b. 6 and above
c. 7 and above
d. 8 and above
Answer: b
17. BMI Stands for:a. Body Mass Index
b. Bureau Mass Index
c. Below Measure Index
d. None of these
Answer: a
18. In HDI the letter D stands for:a. Development
b. Decision
c. Develop
d. Delimitation
Answer: a

19. 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

Answer: Option A

20. 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

Answer: Option D
21. Devaluation of a currency means
A.

reduction in the value of a currency vis-a-vis major internationally traded currencies

B.

permitting the currency to seek its worth in the international market

C.

fixing the value of the currency in conjunction with the movement in the value of a basket of predetermined currencies

D.

fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading
partners

Answer: Option A

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

B.

C.

D.

Answer: Option C

23. 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

Answer: Option D

24. Which of the following is the most appropriate cause of exports surplus?
A.

Country's exports promotion value

B.

Country's stringent import policy

C.

Developments in national and international markets

D.

None of the above

Answer: Option C

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

increase it

B.

decrease it

C.

no impact

D.

None of the above

Answer: Option A

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

Value of stocks of raw materials held

B.

Total issued capital

C.

Revenue from sales of the company's products

D.

Cash held at the bank

Answer: Option C

27. In the state of India, the State Financial Corporation have given assistance mainly to develop
A.

agricultural farms

B.

cottage industry

C.

large-scale industries

D.

medium and small-scale industries

Answer: Option D

28. The central co-operative banks are in direct touch with

A.

farmers

B.

state co-operative banks

C.

land development banks

D.

central government

Answer: Option B

29. States earn maximum revenue through

A.

land revenue

B.

custom revenue

C.

commercial taxes

D.

excise duties on intoxicants

Answer: Option C

30. Our financial system has provided for the transfer of resources from the centre to the states; the important
means of resource transfer are
A.

tax sharing

B.

grant-in-aids

C.

loans

D.

All the above

Answer: Option D

31. Excise duty is a tax levied on the

A.

import of goods

B.

export of goods

C.

production of goods

D.

sale of goods

Answer: Option C

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

A.

to govern entry of new private sector banks to make the banking sector more competitive

B.

to reduce the freedom given to banks to rationalize their existing branch network

C.

to setup more foreign exchange banks

D.

to lend more easily for industrial development

Answer: Option A

33. Non Tax revenues can be increased by improving the working of the
A.

State Road Transport Corporations

B.

electricity boards

C.

commercial irrigation projects

D.

All of the above

Answer: Option C

34. Which of the following is not viewed as a national debt?

A.

Provident Fund

B.

Life Insurance Policies

C.

National Saving Certificate

D.

Long-term Government Bonds

Answer: Option C

35. Deficit financing means that the government borrows money from the
A.

RBI

B.

local bodies

C.

big businessmen

D.

IMF

Answer: Option A

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

entertainment tax

B.

expenditure tax

C.

agricultural income tax

D.

land revenue

Answer: Option C

37. Regional rural banks

have limited area of operation
have free access to liberal refinance facilities from NABARD
are required to lend only to weaker sections
A.

I, III

B.

II, III

C.

I, II, III

D.

I, II

Answer: Option D

38. Devaluation of currency will be more beneficial if

A.

prices of domestic goods remain constant

B.

prices of exports remain constant

C.

prices of imports remains constant

D.

prices of exports rise proportionately

Answer: Option B

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

Statutory Bank Ratio (SBR)

B.

Statutory Liquid Ratio (SLR)

C.

Central Bank Reserve (CBR)

D.

Central Liquid Reserve (CLR)

Answer: Option B

40. If the fiscal deficit of the Union Government is Rs. 75,000 crores relending to State is Rs. 25,000 crores,
interest payments are Rs. 25,000 crores, what is the amount of the primary deficit?
A.

Rs. 50,000 crores

B.

Rs. 25,000 crores

C.

Rs. 1,00,000 crores

D.

Rs. 1,25,000 crores

Answer: Option A

41. Fiscal deficit in the Union Budget means

A.

the difference between current expenditure and current revenue

B.

net increase in Union Governments borrowings from the Reserve Bank of India

C.

the sum of budgetary deficit and net increase in internal and external borrowings

D.

the sum of monetized deficit and budgetary deficit

Answer: Option C

42. Subsidies mean

A.

payment by government for purchase of goods and services

B.

payment made by business enterprises to factors of production

C.

payment made by companies to shareholders

D.

payment made by the government to business enterprises, without buying any goods and services

Answer: Option D

43. The apex body for formulating plans and coordinating research work in agriculture and allied fields is
A.

State Trading Corporation

B.

Regional Rural Banks

C.

National Bank for Agriculture and Rural Development (NABARD)

D.

Indian Council of Agricultural Research

Answer: Option D

44. The ARDC is now a branch of the

A.

RBI

B.

NABARD

C.

IDBI

D.

SDBI

Answer: Option B

All the best by Ur GKbuddy Suryansh