general economy questions and answers for competitive exams which asked Previous Exams .these Questions Helps to prepare UPSC ,SSC, Bank exams General Awareness Part and All also various competitive exams and Entrance Exams Preparation
1 .The Reserve Bank of India was nationalised in the year
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Answer : Option
D
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The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935. The Reserve Bank of India was nationalised with effect from 1st January, 1949 on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. All shares in the capital of the Bank were deemed transferred to the Central Government on payment of a suitable compensation. |
2 .How do you calculate the poverty line?
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Answer : Option
A
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The poverty line in India defines a threshold income; households earning below this threshold are considered poor. In 2011, the Suresh Tendulkar Committee defined the poverty line on the basis of monthly spending on food, education, health, electricity and transport. According to this estimate, a person who spends Rs. 27.2 in rural areas and Rs. 33.3 in urban areas a day are defined as living below the poverty line. |
3 .Indian Special Economic Rules amendment came in the year
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Answer : Option
A
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The Special Economic Zones Rules are associated with the year 2006, though the policy was announced in 2000. The Special Economic Zones Rules, 2006 came into effect on 10 February 2006. The amendment Rules provided for the simplification of procedures for development,operation, and maintenance of the Special Economic Zones and for setting up and conducting business in SEZ. |
4 .The Draft of the Five Year Plans in India is approved by the
Answer & Explanation
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Answer : Option
D
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The government recently (in October 2012) approved the 12th five year plan (2012-17) document that seeks to achieve annual average economic growth rate of 8.2 per cent, down from 9 per cent envisaged earlier and directed that the draft be placed before the National Development Council (NDC) which is the apex body for decision making and deliberations on development matters in India, presided over by the Prime Minister. |
5 .Which is not the objective of Public Procurement and Distribution system followed by Indian Government ?
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Answer : Option
C
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Since 1951 public distribution of food grains has been retained as deliberate social policy by India with the objectives of: Providing food grains and other essential items to vulnerable sections of the society at reasonable (subsidized) prices; put an indirect check on the open market prices of various items and to attempt socialization in the matter of distribution of essential commodities. PDS is an important constituent of the strategy for poverty eradication and is intended to serve as a safety net for the poor. Controlling the production of food grains is not the avowed aim of this system. It is a welfare measure, not some economic regulatory system. |
6 .Which one of the following currencies has the highest value in terms of rupee ?
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Answer : Option
A
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1 British pound sterling = 86.9932 Indian rupees; 1 US dollar = 54.3300 Indian rupees; 1 euro = 69.7163 Indian rupees; and 1 Saudi riyal = 14.4872 Indian rupees. |
7 .Planning and control are so related that
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Answer : Option
A
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Planning and control are two basic and interrelated managerial functions. They are so interrelated that they can be and often are considered as being one function. Planning is the preparation activity while control is the post-operation function. Both of them are so closely related that they are treated as Siamese twins. Planning sets the objectives, goals, targets on the basis of available resources with their given constraints. Control is the integral part of effective planning. Similarly control involves assessment of the performance, such assessment can be made effectively only when some standard of are set in advance. |
8 .In a Capitalistic Economy, the prices are determined by :
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Answer : Option
B
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Capitalism generally refers to economic system in which the means of production are largely or entirely privately owned and operated for a profit, structured on the process of capital accumulation. In general, investments, distribution, income, and pricing is determined by markets. In capitalism, prices are decided by the demand-supply scale. For example, higher demand for certain goods and services lead to higher prices and lower demand for certain goods lead to lower prices. |
9 .When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will
Answer & Explanation
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Answer : Option
D
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In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at that given price. The shift of a demand curve takes place when there is a change in any non-pricedeterminant of demand, resulting in a new demand curve. There is movement along a demand curve when a change in price causes the quantity demanded to change. When there is a change in an influencing factor other than price, there may be a shift in the demand curve to the left or to the right, as the quantity demanded increases or decreases at a given price. For example, if there is a positive news report about the product, the quantity demanded at each price may increase, as demonstrated by the demand curve shifting to the right. |
10 .What is the maximum number of days of employment a rural poor would get under 'MGNREGA'?
Answer & Explanation
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Answer : Option
B
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Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), is an Indian labour law and social security measure that aims to guarantee the 'right to work'. It aims to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. |
11 .What is the revised upper limit for foreign direct investment in telecom service companies ?
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Answer : Option
B
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At present 74% to 100% FDI is permitted for various telecom services. 100% FDI is permitted in the area of telecom equipment manufacturing and provision of IT enabled services. This has made telecom one of major sectors attracting FDI inflows in India. For Basic and cellular, Unified Access Services, National / International Long Distance, VSat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS) and other value added telecom services – FDI upto 74% (including FDI, FII, NRI, FCCBs, ADRs, GDRs, convertible preference shares, and proportionate foreign equity in Indian promoters/ Investing Company) is permitted. FDI upto 49% is permitted under automatic route and beyond 49% by relevant FIPB guidelines. For ISP (with gateways), end to end bandwidth and Radio Paging Service – FDI upto 74% is permitted subject to licensing and security requirements. Here also, FDI up to 49% is permitted under automatic route and beyond 49% by FIPB guidelines. For ISP without gateway, Infrastructure Providers providing dark fibre, right of way, duct space, Tower (Category-I), Electronic Mail and Voice Mail – FDI up to 100% is allowed subject to the conditions that such companies would divest 26% of their equity in favour of Indian public in 5 years, if these companies are listed in other parts of the world. Again, FDI up to 49% is permitted under automatic route and beyond 49% by FIPB guidelines. |
12 .The fringe benefit tax was introduced in the budget of
Answer & Explanation
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Answer : Option
B
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The fringe benefits tax (FBT) was introduced in India in the year 2005-2006. Fringe Benefit Tax (FBT) is fundamentally a tax that an employer has to pay in lieu of the benefits that are given to his/her employees. It was an attempt to comprehensively levy tax on those benefits, which evaded the taxman. The list of benefits encompassed a wide range of privileges, services, facilities or amenities which were directly or indirectly given by an employer to current or former employees, be it something simple like telephone reimbursements, free or concessional tickets or even contributions by the employer to a superannuation fund. FBT was introduced as a part of the Finance Bill of 2005 and was set at 30% of the cost of the benefits given by the company, apart from the surcharge and education cess that also needed to be paid. |
13 .Consider the following statements : a. NTPC has diversified to hydropower sector b. Power Grid Corporation has diversified into telecom sector. Which of the statements below is correct ?
Answer & Explanation
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Answer : Option
C
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NTPC Limited is the largest Indian state-owned electric utilities company based in New Delhi, India. NTPC's core business is engineering, construction and operation of power generating plants and providing consultancy to power utilities in India and abroad. The name of the Company 'National Thermal Power Corporation Limited' was changed to 'NTPC Limited' with effect from 28 October, 2005. The primary reason for this was the company's foray into hydro and nuclear based power generation along with backward integration by coal mining. The Power Grid Corporation of India is an Indian state-owned electric utilities company headquartered in Gurgaon, India. Power Grid wheels about 50% of the total power generated in India on its transmission network. Power Grid has also diversified into Telecom business and established a telecom network of more than 25,000 km across the country. |
14 .Indian Economy is a/an :
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Answer : Option
A
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All developing countries like India are mixed economies. Mixed Economy is neither pure capitalism nor pure socialism but a mixture of the two system. The features of a mixed economy which exist in India are: l Private ownership of means of production; l Important role of market mechanism; l Presence of a large public sector along with free enterprise; l Economic planning |
15 .Which Five Year Plan is not correct among the following ?
Answer & Explanation
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Answer : Option
D
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The time period of Fourth Five Year Plan was 1969- 1974. Three annual plans preceded it. |
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