Practice Paper Based on Indian Economy for Upcoming Competitive Exams

Practice Paper Based on Indian Economy

Many of the students are asking about the Practice Papers. So we are giving you this practice paper based on the Indian Economy here. This practice papers are created by www.Guide4Govtjobs..com's team members. This Paper Contain 20 Multiple Choice Questions from important topics of Indian Economy .We provided the key too for this papers. We hope this paper useful for upcoming competitive exams. All the Best.....

1) Which of the following is not the economic factor for the causes of poverty ?

1. Fast rise in population
2. Low productivity in agriculture
3. Inequalities of income
4. Mass illiteracy

2) Which of the following measures cannot remove poverty ?

1. Population control
2. Government subsidies
3. Increase in production
4. Equitable distribution

3) The inequalities of income in the non-agricultural sector are

1. Increasing
2. Decreasing
3. Stable
4. All the Above

4) Which of the following are causes of inequality of income ?

1. The institution of private property
2. The law of inheritance
3. Economic Exploitation
4. All the Above

5) What is not the effect of the inequalities of income ?

1. Unemployment
2. Concentration of economic power
3. Difference in standard of living
4. Depression in Industries

6) What measure was suggested by Karl Marx for the reduction of inequality of income ?

1. Equal income for all
2. Income according to needs
3. Higher tax on unearned income
4. Increasing the income of the poor

7) Which of the following are the causes of economic insecurity ?

1. Poverty
2. Unemployment
3. Fall in real wages
4. All the above

8) Among the ICICI Safety Bonds, only the following type of bonds quality for tax benefit under section 88 of the Income Tax Act ?

1. Regular Income Bond
2. Tax Saving Bond
3. Money Multiplier Bond
4. Encash Bond

9) The inflation rate projected in the Eighth Plan is of the order of 

1. Zero
2. 4 %
3. 5 %
4. 6 %

10) Devaluation of rupee means

1. Fall in the weight of coin
2. Fall in the domestic purchasing power of rupee
3. Fall in the external purchasing power of rupee
4. Fall in the face value of rupee

11) Indian Rupee was devalued on 

1. May 1, 1991
2. June 1, 1991
3. July 1, 1991
4. August 1, 1991

12) Indian rupee was against devalued on 

1. July 2, 1991
2. July 3, 1991
3. July 4, 1991
4. July 5, 1991

13) The major aim of devaluation is to

1. Encourage imports
2. Encourage exports
3. Encourage both exports and imports
4. Discourage both exports and imports

14) Devaluation of Rupee makes

1. Indian goods cheaper to Indians
2. Indian goods dearer to Indians
3. Indian goods cheaper to foreigners
4. Indian goods dearer to foreigners

15) Euro has been joined by 12 member countries. Greece, a member has been left out because

1. it is not a full-time member of EU
2. its membership has been challenged by the USA
3. it does not want to fulfill the condition laid down for the adoption of Euro
4. as yet it does not fulfill the condition laid down for the adoption of Euro

16) Anti-dumping provisions are administered by

1. World Trade Organisation
2. International Monetary Fund
3. World Bank
4. International Dumping Association

17) The term "Millenium Round of Negotiations " is associated with

1. WTO
2. IDA
3. IMF
4. IBRD

18) Post-Pokharan sanctions imposed on India resulted in

1. stoppage of all capital inflows
2. cuts in aid from World Bank
3. blanket ban on some forms of aid from Japan and some other countries
4. ban on all India's commercial relations with the rest-of-world

19) What are the consequences of the price rise ?

1. Adverse effect on investment
2. Adverse effect on balance of payment
3. Promotion of inequalities
4. All the Above

20) On which of the following basis the Planning Commission has defined poverty in India ?

1. Nutritional requirements of 2,100 calories per person per day for urban areas
2. Nutritional requirement of 2,400 calories per person per day for rural areas
3. Neither of these
4. Both of these

Important Links:

• Arithmetic Mock Exams for Bank Tests
• Current Affairs Practice Paper
• Data Interpretation Practice Paper with Solutions