General Knowledge: Indian Economy

1. The central banking functions in India are performed by the

Central Bank of India
Reserve Bank of India
State Bank of India
Punjab National Bank
A. I, II
B. II
C. I
D. II, III


Answer: Option B



2. 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


3. ICICI is the name of a

A. chemical industry
B. bureau
C. corporation
D. financial institution


Answer: Option D



4. Gilt-edged market means

A. bullion market
B. market of government securities
C. market of guns
D. market of pure metals


Answer: Option B


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



Answer: Option D


6. 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 pre-determined currencies
D. fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners


Answer: Option A


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

A. 4
B. 5
C. 6
D. 8


Answer: Option C


8. 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

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


Answer: Option C



9. 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



Answer: Option C



10. 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