Documente Academic
Documente Profesional
Documente Cultură
2. Human wants are –––– The sources to satisfy wants are ––––
a) Limited, Unlimited
b) Unlimited, limited
c) Unlimited, unlimited
d) Limited, limited
a) A. Marshal
b) L. Robbins
c) Adam Smith
d) J M Keynes
d) GDP deflator
5. If has become conventional to classify a recession as a period where national output falls
for–––––– or more.
a) six months
b) two years
c) three years
d) a year
6. The length of a business cycle would be measured from:
a) the slump to the expansion
b) trough to peak
c) peak to trough
d) peak to peak
7. The macro-economic came into prominence, after the book (General Theory of
Employment, Interest and Money by)
a) J M Keynes
b) L. Robbins
c) A. Marshal
d) A. Smith
a) India
c) United Kingdom
a) Individuals
b) Firms
c) Govt.
a) Human wants
13. “There are three ways to measure GDP.” The statement is:
a) True
b) False
a) Exchange rates
b) Prices
c) Interest rates
d) Taxes
a) Capitalist economy
b) Mixed economy
b) Socialistic economy
d) Laissez-faire economy
18. Which of the following statement matches the definition of Economics as given by Adam
Smith?
19. In which of the following types of economy, the major decisions are taken by individuals and
firms?
a) Capitalist economy
b) Mixed economy
c) Socialistic economy
d) Laissez-faire economy
c) Motivation of a speculator
d) Process of adjustment in money and capital markets for bringing about changes in the
interest rate.
21. Economics is a science which studies human behavior as a relationship between ends
and scare means, which have alternative used. This definition of economics has been by:
a) A. Marshal
b) L. Robbins
c) Adam Smith
d) J M Keynes
a) Price index
23. In Keynes General Theory, investment and savings are brought to equality primarily through
changes in the:
a) Rate of interest
c) National income
d) Level of prices
24. In a command economy, the major decisions about production and consumption are taken
by:
a) Individuals
b) Firms
c) Govt.
a) Capitalist economy
b) Mixed economy
c) socialistic economy
d) Laissez-faire economy
Key
1.d 2.b 3.a 4.d 5.a 6.d 7.a 8.a 9.c 10.a 11.c 12.d 13.a
14.b 15.b 16.d 17.d 18.d 19.a 20.a 21.b 22.d 23.c 24.c 25.b
1. The book titled An Enquiry into the Nature and Causes of the Wealth of Nations, is
authored by:
a) A. Marshal
b) L. Robbins
c) Adam Smith
d) J M Keynes
d) Relationship between the price of a commodity, its demand and quantity purchased
5. In the liquidity preference theory of interest of Keynes nioney acts as a link between the
present and the future in the case of:
a) Socialistic economy
b) Gandhian economy
c) Mixed economy
d ) Free economy
a) Household savings
d) Corporate savings
a) Optimum price
b) Equilibrium price
c) Commercial price
d) Concessional price
a) Cost of living
b) Standard of living
c) Productivity
d) None of these
11. Which of the following is CORRECT regarding the Gross Domestic Savings in India?
12. Which of the following governmental steps has proved relatively effective in controlling the
double digit rate of inflation in the Indian economy during recent years?
13. Which of the following factors affects the supply curve (a) policies changes by govt.
a) a and b only
b) b and c only
c) a and c only
d) a to c all
15. One of the problems in calculating the national income in India correctly is?
a) Under-employment
b) Inflation
c) Non-monetized consumption
d) Low savings
16. The main source of India’s national income is?
a) Industry
b) Agriculture
c) Forestry
d) None of these
d) Quantity supplied and quantity demanded have no relationship with the marker
equilibrium
d) The properly demand curve moves from northwest to southwest is called the
downward sloping curve
a) Socialistic economy
b) Gandhian economy
c) Mixed economy
d ) Free economy
20. The most important source of capital formation in India has been:
a) Household savings
d) Corporate savings
21. The term shift in supply stands for which of the following :
a) Optimum price
b) Equilibrium price
c) Commercial price
d) Concessional price
a) Cost of living
b) Standard of living
c) Productivity
d) None of these
24. Which of the following is CORRECT regarding the Gross Domestic Savings in India?
25. Which of the following governmental steps has proved relatively effective in controlling the
double digit rate of inflation in the Indian economy during recent years?
1.c 2.a 3.a 4.b 5.d 6.c 7.a 8.d 9.b 10.a 11.a 12.a 13.d
14.b 15.c 16.b 17.c 18.b 19.c 20.a 21.d 22.b 23.a 24.a 25.a
1. Which of the following factors affects the supply curve (a) policies changes by govt.
a) a and b only
b) b and c only
c) a and c only
d) a to c all
3. One of the problems in calculating the national income in India correctly is?
a) Under-employment
b) Inflation
c) Non-monetized consumption
d) Low savings
a) Industry
b) Agriculture
c) Forestry
d) None of these
d) Quantity supplied and quantity demanded have no relationship with the marker
equilibrium
6. Which of the following statement is not correct?
d) The properly demand curve moves from northwest to southwest is called the
downward sloping curve
a) Income method
b) Value-added method
c) Expenditure method
d) Export-Import method
8. The quantity demanded tends to fall as price rises for the following reasons
9. If price of a commodities moves up, the demand for its substitute commodity:
a) Increases
b) Decreases
c) Remains constant
a) Sales Tax
b) Direct Taxes
c) Excise Duties
d) None of these
11. Government imposes taxes to:
12. If price of a commodities moves up, the demand for its supplementary commodity:
a) Increases
b) Decreases
c) Remains constant
a) Expansion in demand
b) Construction in demand
c) Shift in demand
d) Decrease in demand
b) 15th March
d) 1st April
a) Issue of currency
d) None of these
19. In an economy M is equal to Currency with public + Demand deposits with bank
+ Demand portion of savings deposits with Banks + Other Deposits with RBI, where
currency with public is equal to :
d) Demand deposits with banks, other deposits and small coins in circulation
20. In which of the following situations, there is no tendency on the part of price to rise or fall?
21. Which of the following statement regarding equilibrium with supply and demand curves
is not correct?
a) When supply is greater than demand, there is surplus which leads to decrease in price
b) When supply is less than demand, there is shortage which leads to decrease in
price
c) When supply is equal to demand, there is equilibrium which keeps the price at
equilibrium
22. The basic difference between money stock measure M3 and M4 is that:
a) M3 is more than M4
d) M4 includes all post office deposits, whereas in M3 these are not included
23. Time deposits with banks are included in ________ measure of money stock.
a) M1
b) M2
c) M3
d) M4
24. If there is shift in supply curve from right to left, without any change in the demand curve,
Key
1.d 2.b 3.c 4.b 5.c 6.b 7.d 8.b 9.a 10.c 11.b 12.b 13.c
14.a 15.c 16.c 17.d 18.b 19.c 20.c 21.b 22.d 23.e 24.b 25.c
1. The market demand curve is found by:
2. The RBI can increase the demand deposit component of the money supply by :
b) Only IV above
3. The quantity of notes and coins in private circulation plus the quantity of cash held by the
banking systems is called:
a) Monetary base
c) M1
d) M3
4. If you withdraw Rs. 100 from your checking account, this transaction:
(b) a measure of value (c) a store of value over time (d) standard for deferred payments?
a) a to all
b) A to c only
7. Under money supply concept, the term narrow money include which of the following
b) Currency with public + demand deposits with banks+ other deposits with RBI
i) M1 = Currency with public + Demand portion of thus a potential change in real GDP.
b) Currency with public + demand deposits with banks + other deposits with RBI
c) Currency with public + demand deposits with banks + other deposits with RBI +
term deposits with banks
d) Currency with RBI + term deposits with banks + post office deposits
10. The demand deposits are those deposits that are (a) paid on demand (b) paid on maturity
a) a and c
b) b and d
c) a and c
d) b and c
11. The term deposits are those deposits that are (a) paid on demand (b) paid on maturity
(c) are very liquid (d) are less liquid:
a) a and c
b) b and d
c) a and c
d) b and c
a) M0
b) M1
c) M2
d) M3
13. Commercial Banks create money through credit creation. Which of the following
statements is true with regard to credit creation?
14. The term deposits are those deposits that are (a) paid on demand (b) paid on maturity (c)
are very liquid (d) are less liquid:
a) a and c
b) b and d
c) a and c
d) b and c
a) M0
b) M1
c) M2
d) M3
16. Commercial Banks create money through credit creation. Which of the following
statements is true with regard to credit creation?
a) Demand deposits
c) Savings deposits
d) Time deposits
e) M2
18. All entries in the balance of payments should collectively sum to:
d) Zero
19. Which of the following price index is used in Indian for the purpose of policy formulation:
20. All entries in the balance of payments should collectively sum to:
d) Zero
21. Which of the following price index is used in Indian for the purpose of policy formulation:
22. Which of the following price index measures the prices at retail level:
24. All entries in the payments statements should collectively sum to:
d) Zero
25. When inflation caused due to increasing aggregate demand for goods and services by
consumers, it called:
d) Consumer inflation
Key
1.b 2.c 3.e 4.c 5.a 6.a 7.b 8.d 9.c 10.c 11.b 12.d 13.a
14.b 15.d 16.a 17.d 18.d 19.a 20.d 21.a 22.b 23.c 24.d 25.b
1. A reduction in Commercial Bank reserves due to weekly increases in currency in circulation
is :
a) Reserve requirements
b) Open-market operations
e) Moral suasion
a) Reserve requirements
b) Open-market operations
e) Moral suasion
c) (Price index in the current year + Price index in the base year) / Price index in the base
year X 100
d) (Price index in the current year - Price index in the base year) / Price index in
the base year X 100
4. In an inflationary period, the appropriate policy for the RBI would be to:
d) Consumer inflation
a) Headline inflation
b) Core inflation
c) GDP deflator
8. In the last few months the forex reserves in India have been increasing. Which of the
following sterilization policies the Reserve Bank of India should adopt?
a) Increase CRR
b) Decrease CRR
d) Deptt. Of Economy
a) Payment for the risk involved in making the loan, payment for the trouble involved
b) Payment for the trouble involved, pure interest i.e. payment for the use of money
c) Payment for the risk involved in making the loan pure interest i.e., payment for the use of
money
d) Payment for the involved in making the loan, payment for the risk trouble involved,
pure interest i.e., a payment for the use of money
11. Which of the following happens when the Central bank increases open market purchase?
12. What would be the sequence of events when RBI increases money supply by reducing
CRR?
a) I, II, III, IV
b) III, IV, I, II
d) IV, III, II , I
a) Price of money
b) Price determined by the demand for money
14. The rate of interest is determined by the liquidity preference or demand for money and
supply of money, as per:
15. The demand for money by the people depends up on how they decide to balance their
portfolio between money and bonds, in the :
a) Open economy
b) Two-asset economy
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Revenue policy
18. Which of the following items is/are the major components of non-plan expenditure?
a) Interest payments
b) Defense expenditure
c) Subsidies
a) Revenue deficit
b) Capital deficit
c) Budget deficit
d) Primary deficit
e) Monetized deficit
a) Money supply
b) Inflation
c) Private investments
21. The position of money demand curve depends up on (a) the level of nominal income (b) the
expectations about the changes in bond prices in future (c) prices fluctuations.
a) a and b only
b) a and c only
c) b and c only
22. The bond prices and current interest rates are related –––– as per JM Keynes
a) Directly
b) Inversely
c) Indirectly
d) Positively
23. Hicks and Hansen brought about a synthesis between –––– and –––– and succeeded in
propounding an adequate and determine theory of interest.
24. Budgetary deficit + Government borrowing and other Liabilities is known as:
a) Revenue
b) Capital deficit
c) Budget deficit
d) Primary deficit
e) Fiscal deficit
Key
1.b 2.b 3.d 4.a 5.c 6.d 7.c 8.a 9.b 10.d 11.b 12.b 13.d
14.b 15.b 16.c 17.a 18.e 19.d 20.e 21.a 22.b 23.c 24.e 25.c
1. JM Keynes, explained the interest rate, purely in terms of which of the following:
a) Economic phenomenon
b) Monetary phenomenon
c) Social phenomenon
d) Market forces
2. ––––– indicate the various rates of interest at different levels of income, given the
investment demand curve and family of saving curves at different levels of income;
a) LM Curve
b) IS Curve
c) LM and IS Curve
d) Liquidity curve
a) Liquid money
d) Liquidity Model
5. As per Hicks and Hansen, the equilibrium rate of interest comes at a point where:
a) The government cuts taxes or raises spending to get the economy out of
recession
b) The central bank changes the money supply to affect the price level, interest rates and
exchanges rates
8. If a Government is running surplus in its budget, we can expect that public debt will be:
a) Rising
b) Falling
c) Constant
9. For the purpose of Liquidity preference theory of Interest, JM Keynes assumed a simplified
economy with 2 assets, which are:
a) Money in the form of currency or bank deposits and long term bonds
d) Law of Money
11. The money demand curve, as per Keynesian Theory of Interest is downward sloping ,
because:
a) It is regular phenomenon
b) It is predictable phenomenon
c) It is repetitive phenomenon
15. In –––––– the general demand falls faster than production and producers are not able to
recover full cost even. The aggregate economic activity is at the bottom:
a) Recovery
b) Boom
c) Depression
d) Recession
16. Which of the following is not a feature of the recovery phase in a business cycle?
a) The consumers who had postponed purchase of goods and services still are
not ready to buy goods and services
17. In which of the following phases, the underemployment of manpower and material is
prevalent in which of the following:
a) Recovery
b) Boom
c) Recession
d) Depression
a) Recovery
b) Boom
c) Recession
d) Depression
a) Slowdown
b) Depression
c) Recession
d) Recovery
20. A wave of prosperity of depression in one industry, in the case of a business cycle, will
generate a waive in other industries soon. Which of the following features of a business
cycle it represents:
a) A business cycle is a wave like movement
d) Any of these
21. Which of the following statements is not correct regarding a business cycle:
d) The upward movement is more sudden and violent, than the downward
movement
a) Vicious cycles
b) Depression cycles
c) Boom cycles
d) Economic cycles
a) Demand deficiency
b) Supply deficiency
c) Demand sufficiency
d) Supply sufficiency
a) Services sector
b) Defense sector
c) Agricultural sector
d) Industrial sector
Key
1.b 2.b 3.c 4.c 5.c 6.d 7.a 8.e 9.a 10.b 11.b 12.d 13.a
14.a 15.c 16.a 17.d 18.c 19.a 20.b 21.d 22.d 23.b 24.a 25.b
1. Which sector of Indian economy has the highest contribution to gross domestic product:
a) Services sector
b) agricultural sector
d) Industrial sector
3. Which of the following sectors is called the primary sector of Indian economy?
a) Services sector
c) agricultural sector
d) Industrial sector
a) Services sector
c) Agricultural sector
d) Industrial sector
5. Which of the following is a severe challenge that Indian economy is facing presently (a)
poverty (b) environment (c) physical infrastructure (d) fiscal issues
b) b and d only
d) a to d all
6. The contribution of agriculture to GDP in %age terms has ––––– in the last 10 years:
a) Increased
b) Declined
c) Remained constant
d) None of these
7. The structural weaknesses of agriculture sector in Indian are reflected in which of the
following:
b) Exhaustion of the yield potential of new high yielding varieties of wheat and rice
8. Central Statistical Organization (CSO) classifies the industrial sector into ––-––– segments:
a) Two
b) Three
c) Four
d) Six
9. Central Statistical Organization (CSO) classifies the industrial sector into following
segments (a) mining and quarrying, (b) manufacturing and electricity, (c) gas and water
supply:
a) a to c all
b) a and b only
c) b and c only
d) a and c only
10. As per provisions of Micro, Small and Medium Enterprises Development Act, 2006, the
enterprises are classified into following 2 categories:
11. As per provisions of Micro, Small and Medium Enterprises Development Act, 2006,
developing up on the level of investment in plant and machinery or equipment, the
enterprises are classified into:
12. The Micro, Small and Medium Enterprises Development Act 2006 provides for creation of
which of the following :
a) Deptt. of MSME
b) Ministry of MSME
13. Which of the following is correct regarding segments of Indian economy, during the last
15 years:
a) Services sector has gained at the cost of agriculture and industrial sectors.
b) Agricultural sector has gained at the cost of services and industrial sectors.
c) Industrial sector has gained at the cost of services and agricultural sectors.
d) All sectors have gained at the cost of each other.
14. In the first 50 years of 19th century, the economic growth rate was 0.7% .It increased to 3.5
% in the first 3 decades after independence. This is called:
16. The curve that depicts the relationship between the rate change in prices and the rate of
unemployment is:
a) Laffer curve
b) Phillips curve
d) LM curve
e) IS curve
17. The bank reserves fall rapidly in –––––– stage of business cycle.
a) Recovery
b) Boom
c) Recession
d) Depression
18. The Inventory stock will be high in –––––– stage of a business cycle.
a) Recovery
b) Boom
c) Recession
d) Depression
Key
1.a 2.d 3.c 4.a 5.d 6.b 7.d 8.b 9.a 10.b 11.c 12.c 13.a