MCQ MARATHONFOR PRELIMS 2020

ECONOMYXI & XII NCERTSHANKAR GANESH

COVERS1.

2. 3. UMA KAPILA

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Which of the following forms part of the non-debt receipts (NDR) of the Central Government? 1. Receipts from spectrum Auction 2. Proceeds from disinvestment in public sector enterprises 3. Recovery of loans given to foreign governments. Selectthe correct answer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following Government expenditures is/are 'Transfer Payments'? 1. Subsidies 2. Old Age Pension 3. Procurement of defence equipment 4. Interest payments on loans Select the correct answer using the code given below. A) 1, 2 and 4 only B) 2 and 4 only C) 1 and 3 only D) 1, 2, 3 and 4 Correct Answer: B With reference to Capital Account Convertibility, consider the following statements: 1. It refers to the freedom to convert localfinancial assets into foreign financial assets and vice versa at market determined rates of exchange. 2. Presently India hasfull capital account convertibility. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which of the following initiatives may lead to increase in fiscal deficit of states? 1. Implementation of State Pay CommissionRecommendations 2. UDAY scheme 3. Slow growth of states

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Select the correct answer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following best describes Debt Service Coverage Ratio? A) It is the amount of export earnings needed to meet a country's annual external debt. B) It is the ratio of a country's import expenditure to its export earnings. C) It is amount of forex reserves a country holds to cover its expenditure on imports. D) It is the ratio of a country's external commercial borrowings to its GDP. Correct Answer: A Which of the following is/are the likely effects of deficit financing by the Government? 1. Increase in inflation 2. CheaperImports 3. Fall in exports Select the correct answer using the code given below. A) 1 only B) 3 only C) 1 and 2 only D) 2 and 3 only Correct Answer: A With reference to the Statutory Liquidity Ratio (SLR), consider the following statements: 1. It is the fraction of total time anddemand deposits a bank must keep with the Central bank. 2. Banks should maintain SLR requirements only in cash. Which ofthe statement given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D

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Which of the following is/are likely effects of the Government’s focus on increasing financial inclusion? 1. Increase in thesavings rate of the economy 2. Reduction in poverty 3. Increase in the Cash Reserve Ratio Select the correct answer usingthe code given below. A) 1 only B) 2 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: C Taxation in modern public finance aims to achieve which of the following objectives? 1. Achieving full employment 2. Ensuring price stability 3. Reduction of inequalities in income and wealth Select the correct answer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D With reference toeconomy, the term disinflation refers to A) Declining but positive inflation rate. B) Negative inflation rate. C) Stagnant inflation rate. D) Very high rate of inflation. Correct Answer: A Which of the following may be benefitted due to inflation? 1. Borrowers 2. Lenders 3. Bond-holders Select the correct answerusing the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3

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Correct Answer: A In an economy, Liquidity shortage refers to a situation when A) Net balance of payment is negative B) Net balance of payment is positive C) Net fund borrowed from RBI is negative D) Net fund borrowed from RBI is positive Correct Answer: D With reference to Domestic and National Income, consider the following statements: 1. Unlike the domestic income, nationalincome includes net factor income from abroad. 2. Unlike the national income, domestic income generated only with in thedomestic territory of a country. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to the monetary policy framework, consider the following statements: 1. The inflation target would be set oncein every five years. 2. The current inflation target has been set at 4 per cent with tolerance level of +/- 2 per cent. Which of thestatements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which among the following situations may be observed in an economy if it has high fiscal deficit? 1. Crowding out of privateInvestment 2. Weaker domestic currency 3. High Inflation Select the correct answer using the code given below.

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A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to venture capital fund, consider the following statements: 1. It refers to a money pool created by high networth individuals or companies for investing in start-ups. 2. It is regulated by Securities and Exchange Board of India. Whichof the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to economy, the term National Disposable Income refers to A) Net National Income at Market price along with current transfers from rest of the world. B) Gross National Product at Market price excluding depreciation. C) Net Domestic Product at Market price excluding net indirect taxes. D) Gross National Savings including final consumption expenditure. Correct Answer: A Which of the following items are part of 'current account' in Balance of Payments? 1. Interest on loans 2. Touristexpenditure 3. Banking and insurance charges 4. Software services Select the correct answer using the code given below. A) 1, 2, 3 and 4 B) 2, 3, and 4 only C) 1 and 3 only D) 1, 2 and 4 only Correct Answer: A Consider the following statements about capital markets: 1. It is used for medium-term and long- term investments of a yearor more. 2. It includes only the issue of fresh securities in the primary market.

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Which of the statements given above is/arecorrect? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A With reference to ad valorem taxes, consider the following statements. 1. It depends on the value of the asset or the price ofthe good. 2. It is a progressive form of taxation. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which of the following best describes 'Sweat Equity Issue'? A) It is the offer of shares to employees as a reward for their hard work. B) It is the offer of shares to existing shareholders as a distribution of profits. C) It is the allotment of securities by a company to institutional investors. D) It is an issue to raise funds in the secondary market. Correct Answer: A With reference to 'Effective Revenue Deficit', consider the following statements: 1.It was introduced on the recommendationof 13th Finance Commission. 2.It includes all the revenue expenditure done in the form of grants for creation of capital assets. 3.Grants given under MNREGA to build capital assets like roads and ponds forms part of it. Which of the statementsgiven above is/are correct? A) 1 only B) 2 and 3 only C) 3 only D) None Correct Answer: D Which of the following would have inflationary effect on the economy? 1.RBI releasing new bonds in the market. 2.RBI decreasing the SLR.

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3. RBI increasing the Bank Rate. 4. Abolition of CRR. Select the correct answer using the code givenbelow. A) 1, 2 and 3 only B) 1 and 4 only C) 2 and 4 only D) 3 and 4 only Correct Answer: C Which of the following is/are example of capital expenditure by the government? 1.Loan repayment 2.Interest payment onloan 3.Buying F-16 fighter jets Select the correct answer using the code given below. A) 1 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 only Correct Answer: B With reference to Quantitative Easing, which among the following statements is/are correct? 1.It is a monetary policy in whichthe central bank sells government securities. 2.It is adopted to lower the interest rates and increase the money supply. 3.It can lead to higher rates of inflation. Select the correct answer using the code given below. A) 1 and 2 only B) 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C Budget deficit may lead to which of the following? 1.Rise in the interest rates 2.Depreciation of real exchange rate 3.Trade balance is pushed towards deficit Which of the statements given above is/ are correct? A) 1 and 2 only B) 1 and 3 only C) 3 only

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D) 2 and 3 only Correct Answer: B Which of the following revenue expenditure comes under Non-Plan expenditure in India? 1.Loans to State and U.TGovernments. 2.Grants to State and U.T Governments. 3.Subsidies. 4.Defence services. Select the correct answer using thecode given below. A) 3 and 4 only B) 1, 3 and 4 only C) 2, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: C With reference to the Zero Based Budgeting (ZBB) method, consider the following statements: 1.It begins with the budgetfrom the last period. 2.Under this method, every activity needs to be justified. 3.Railway has decided to take a ‘zero basedbudgeting’ approach to the financials of 2016-17. Which of the statements given above is/are correct? A) 1 and 3 only B) 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C Budget deficit can be reduced by: 1.Decreasing the direct taxes 2.Increasing expenditure on subsidies and welfare Programmes 3.Implementation of GST Select the correct answer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 3 only Correct Answer: D

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Consider the following statements: 1.Deflation is the persistent fall in the general price level of goods andservices. 2.Disinflation is a decrease in the rate of inflation. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 and 2 Correct Answer: C Which of the following best describes 'Tax Expenditure'? A) It is the expenditure incurred by the government during collection of tax. B) It is the revenue forgone by the government on account of exemptions on income and corporate tax. C) It is the revenue forgone on account of exemptions on indirect taxes. D) It is the expenditure made by the government from the income accrued through taxes. Correct Answer: B The Macro-Vulnerability Index (MVI) is used for calculating the Macro-Economic performance of the Country. Which of thefollowing factors are used to determine MVI? 1.Current Account Deficit 2.Fiscal Deficit 3.Primary Deficit 4.Rate ofInflation 5.Exchange Rate Select the correct answer from the code given below. A) 2, 4 and 5 only B) 3, 4 and 5 only C) 1, 2 and 4 only D) 1, 2, 4 and 5 only Correct Answer: C Microeconomics deals with which of the following parameters? 1.Behaviour of consumers in the markets for different goodsand services. 2.Employment and aggregate price level. 3.The way prices and quantities of goods and services aredetermined in market. Select the correct answer using the codes given below. A) 1 and 2 only

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B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Arrange the following in decreasing order of their contribution to the Gross Tax Revenue. 1.Corporation Tax 2.IncomeTax 3.Custom Duty Select the correct answer using the code given below. A) 1-2-3 B) 2-3-1 C) 2-1-3 D) 3-1-2 Correct Answer: A Which of the following best defines Tax buoyancy? A) It is the ratio of growth in tax revenue to growth in GDP. B) It is the ratio of gross tax collected to the total public debt of the state. C) It is the ratio of gross tax collected by the state to the percentage of GDP. D) It is the ratio of growth in tax revenue to the growth in population. Correct Answer: A The government is planning to remove the distinction between plan and non-plan expenditure from 2017-18. With regard tothe present non-plan expenditure, consider the following statements: 1.Salary Payments and Pensions are a part of Non-planexpenditure. 2.The Non-Plan Expenditure is higher than Plan Expenditure of the government. 3.Interest Payments forms thehighest portion in Non-Plan Expenditure. Which of the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following are part of the Revenue budget? 1.Income Tax 2.Grants to states

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3.Interest on GovernmentSecurities. Select the correct answer using the code given below. A) 1 and 2 only B) 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following are introduced in the Parliament in the process of passing the budget? 1.Finance Bill 2.AppropriationBill 3.Demand of Grants 4.Vote on Account Select the correct answer using the code given below. A) 1 and 2 only B) 1, 3 and 4 only C) 2, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following are the ways to reduce revenue deficit without creating liabilities? 1.Printing more money byRBI 2.Low rate interest loans from World Bank 3.Increasing direct taxes 4.Rationalisation of Subsidies Select the correctanswer using the code given below. A) 1, 3 and 4 only B) 3 and 4 only C) 2, 3 and 4 only D) 1 and 2 only Correct Answer: B With reference to Minimum Alternate Tax (MAT), consider the following statements: 1.It is applied on those companies whichshow zero or negligible income to avoid tax. 2.It is only applicable to private companies and not on public companies. 3.It isapplied on the book profits of the companies at the rate of 18.5%.

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Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: B Which of the following are part of Capital account of the budget? 1.Salaries of government employees 2.Recovery of loans bycentral government 3.Investment in shares of PSUs Select the correct answer using the code given below. A) 1 and 2 only B) 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C Which of the following are the components of Fiscal deficit? 1.Government's net borrowing at home. 2.Government'sborrowing from abroad 3.External Commercial Borrowings of private sector 4.Government's borrowing from RBI. Select thecorrect answer using the code given below. A) 1 and 2 only B) 1, 2 and 4 only C) 1, 3 and 4 only D) 2 and 4 only Correct Answer: B Which of the following is/are part of Non-tax revenue receipts? 1.Dividends paid by PSUs to government 2.License feereceived by government 3.Disinvestment of shares of PSUs Select the correct answer using the code given below. A) 2 only B) 1 and 3 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: C

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Which among the following represents the effective monetary policy transmission? A) Banks increasing the lending rate, when RBI reduces the Repo rate. B) Banks reducing the lending rate, when RBI reduces the Repo rate. C) Banks increasing lending rate, when RBI reduces the Reverse Repo rate. D) Banks increasing the lending rate and deposit rates, when RBI reduces both Repo and Reverse Repo rate. Correct Answer: B Consider the following statements: 1.According to Laffer curve, tax revenues always increase with increase in taxrate. 2.According to Philips curve, there exist inverse relationship between rate of unemployment and rate ofinflation. 3.Lorenz curve is a graph showing the degree of inequality in income in a given population or an economy. Which ofthe statements given above is/are correct? A) 1 and 3 only B) 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C Which of the following taxes would be impacted by the Goods and Services Tax (GST) bill, recently passed by the government? 1.Corporate tax 2.Service Tax 3.Octroi and Entry tax Select the correct answer using the codes given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C Which of the following policy statements are mandated under Fiscal responsibility and Budget Management Act,2003? 1.Medium term fiscal policy statement 2.Fiscal policy strategy instrument 3.Macroeconomic frameworkStatement 4.Gender budgeting

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Select the correct answer using the code given below. A) 1 and 4 only B) 2, 3 and 4 only C) 1, 2 and 3 only D) 1 and 3 only Correct Answer: C Which of the following statements correctly explains Primary deficit? A) It is fiscal deficit minus grants given to state for capital expenditure. B) It is revenue deficit minus revenue expenditure. C) It is total revenue of government minus total expenditure. D) It is fiscal deficit minus net interest payments. Correct Answer: D Which of the following is/are correct regarding capital account of the budget? 1.Capital receipt leads to increase in asset ofgovernment. 2.Capital expenditure leads to increase in liability of government. Select the correct answer using the code givenbelow. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Consider the following statements with regard to proportional taxation: 1.The rate of taxation does not change as the taxableamount increases or decreases. 2.It makes consumer spending less sensitive to fluctuations in GDP. Which of thestatements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which among the following are steps taken by the Government of India to promote financial inclusion? 1.Promoting Basicsavings bank deposit accounts (BSBDAs) 2.Business Correspondent-Information and Communication Technology (BC-ICT) Transactions 3.Atal pension yojana

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4.Pradhan Mantri Mudra Yojana Select the correct answer from the codes given below. A) 1 only B) 1 and 2 only C) 1, 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: D With reference to monetary aggregates M1 and M2, also known as narrow money, consider the following statements 1.M1 isthe most liquid part of the money supply. 2.M2 is obtained by excluding Savings with Post offices from M1. Which of thestatements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Consider the following statements regarding Commodities transaction tax: 1.It is a financial transaction tax levied oncommodity derivatives exchanges involving agricultural commodities. 2.It is an indirect tax. Which of the statements givenabove is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Which of the following can be the possible benefits of greater financial inclusion? 1.Higher domestic savings 2.Enhanced Investment 3.Better delivery of welfare schemes 4.Greater penetration of financial services. Select the correct answer usingthe code given below. A) 1 and 2 only B) 1, 3 and 4 only C) 3 and 4 only D) 1, 2, 3 and 4

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Correct Answer: D Which of the following statements is/are correct regarding fiscal deficit? 1.It leads to deflation in economy. 2.It leads toincrease in primary deficit. 3.It leads to crowding-out of private investment Select the correct answer using the code givenbelow. A) 1 and 3 only B) 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C With reference to Agricultural Produce Market Committee (APMC), consider the following statements: 1.It is a statutorymarket committee constituted by state government. 2.APMCs restrict the farmer from entering into direct contract with anymanufacturer. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which of the following is/are the effects of New Economic Policy 1991 on Indian economy? 1.Increase in foreign directinvestment and forex reserves. 2.Increase in public investment in agricultural infrastructure. 3.Reduction in regionaldisparities. Select the correct answer using the code given below. A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Consider the following pairs:Type of subsidy under WTO Stated purpose 1.Green Box: Production limiting subsidies 2.Amber Box: Trade distorting subsidies and need to be curbed

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3.Blue Box: Not specific subsidies and are non actionable Whichof the above is/are correctly matched? A) 1 and 3 only B) 2 only C) 2 and 3 only D) 1 and 2 only Correct Answer: B Which among the following factors have led to improved performance of Indian economy despite the weak growth of globaleconomy recently? 1.Pursuing efforts to improve ease of doing business 2.Liberalising foreign direct investment 3.Improving financial inclusion Select the correct answer using the code given below. A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to Securities Transaction Tax, consider the following statements: 1.It is a financial transaction tax levied ontransactions done by Indians on foreign stock exchanges. 2.It is an indirect tax. Which of the statements given above is/arecorrect? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Which of the following would be taxed under Goods and Services Tax ? 1.Alcohol 2.Electricity 3.Tobacco 4.Betting andGambling Select the correct answer using the code given below. A) 1 and 4 only B) 1, 2 and 3 only C) 2, 3 and 4 only

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D) 1, 2, 3 and 4 Correct Answer: C Which of the following sets of figures can be found in the Budget presented annually by the Government of India? 1.Actual figures for the preceding year 2.Actual figures for the current year 3.Revised figures for the current year 4.Budget estimatesfor the following year Select the correct answer using the code given below. A) 1, 2 and 3 only B) 1, 3 and 4 only C) 2 and 4 only D) 1 and 3 only Correct Answer: B Which of the following may be classified as Pigouvian Tax? 1.VAT 2.Education Cess 3.Krishi KalayanCess 4.Coal Cess Selectthe correct answer using the code given below. A) 4 only B) 1 and 4 only C) 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: A With reference to the term 'Internal and Extra Budgetary resources', consider the following statements: 1.It constitutes theresources raised by the PSUs through profits, loans and equity. 2.It includes external commercial borrowings raised inaddition to the Gross Budgetary Support. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C

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With reference to the Goods and Service Tax Network GSTN), consider the following statements : 1.It is a not-for-profitcompany under the Companies Act, 2013. 2.Majority of its equity is held by non-government financial institution. 3.It providesIT infrastructure and services to the central and state governments forimplementation of the Goods and Services Tax. Whichof the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: D Which among the following correctly describes the term Advance Pricing Agreement? A) It is a financial contract obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price. B) It is an agreement between a tax payer and tax authority determining the methodology for pricing the tax payer’s international transactions for future years. C) It is an agreement for an infrastructure project where the cost is completely borne by the government and the engineering knowledge is from the private players. D) None of the above Correct Answer: B Consider the following statements regarding Value Added Tax VAT): 1.It is a tax levied on value addition at each stage oftransaction in the production-distribution chain. 2.It is not levied on imported goods. 3.It is a direct tax. Which of the statementsgiven above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A With reference to the budget receipts of the government, consider the following statements: 1.Revenue receipts do notcreate liabilities for the government.

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2.Interest receipts on account of loans by the central government fall under the capital Receipts Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which of the following fall under the Capital Receipts component of the Government Budget? 1.Income from sale of treasuryBills 2.Recoveries of loans granted by the Central government 3.Disinvestment Select the correct answer using the code givenbelow. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D The term Green Box, Amber Box and Blue Box of WTO deals with a member country's? 1.Subsidies 2.Intellectual PropertyRights 3.Non Tariff Barriers Select the correct answer using the codes given above. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A With reference to the National Capital Goods Policy, 2016, consider the following statements: 1.This is the first ever policy forcapital goods sector in the country. 2.It aims to make India a net exporter of capital goods. 3.It aims to promote growth andcapacity building of MSMEs. Which of the statements given above is/are correct? A) 1 and 2 only

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B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following is/are included in social services expenditure by the union government for budgetingpurpose? 1.Sports 2.Water supply and sanitation 3.Welfare of Scheduled Castes SC) and Scheduled Tribes ST) 4.Relief onaccount of natural calamities Select the correct answer using the code given below. A) 1 and 2 only B) 3 and 4 only C) 1, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D With reference to Gender Budgeting in India, consider the following statements: 1.It is a process of keeping a genderPerspective in formulation and implementation of policy and programmes. 2.There is a mandate to have a gender budgetingcell in all ministries to institutionalize gender budgeting. 3.The Ministry of Finance is the nodal agency for gender budgeting in India. Which of the statements given above is/are correct? A) 1 and 2 only B) 2 only C) 3 only D) 1, 2 and 3 Correct Answer: A Which among the following can lead to 'decentralized planning' in the policy making? 1.Disbanding the planningcommission. 2.Increasing Grant-in-aids to states. 3.Allowing the states to prepare demand led planning. Select the correctanswer using the codes given below. A) 2 and 3 only B) 1 and 3 only C) 1 and 2 only

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D) 1, 2 and 3 Correct Answer: B Which of the following measure(s) is/are example(s) of expansionary fiscal policy? 1.Decrease in tax rate 2.Increase inpensions 3.Increase in unemployment compensation 4.Increase in tax rate Select the correct answer using the codes givenbelow. A) 2 and 3 only B) 1, 2 and 4 only C) 1, 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: C Which of the following policies can be adopted to promote 'fiscal consolidation'? 1.Increasing FDI in insurance 2.Enactment offood security laws 3.Direct Benefit Transfer Select the correct answer using the codes given below. A) 2 and 3 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: B If there is Current Account Deficit (CAD) and fiscal deficit in an economy, then ideally A) Investment in the economy should be equal to domestic savings. B) Savings will naturally be much greater than investment in the economy. C) Savings will be lesser than gross investment in the economy. D) Investment will be equal to the total amount of capital goods and infrastructure created in the economy. Correct Answer: C With reference to the Revenue Expenditure of government, consider the following statements: 1.It is provided for in everyannual budget of the government. 2.Some part of revenue expenditure may be used for creation of physical assets. 3.Interest payments on debt incurred by the government do not form part of revenue expenditure.

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Which of the statements given aboveis/are correct? A) 1 and 2 only B) 3 only C) 2 and 3 only D) None of the above Correct Answer: A Which of the following are the Qualitative measures of Monetary Policy? 1.Rationing of credit 2.Credit ceiling 3.Consumer credit regulation Select the correct answer using the codes given below A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C An expansionary fiscal policy by the government can result in 1.Inflation 2.Economic growth 3.Higher budgetary deficit 4.Lower budgetary deficit Select the correct answer using the codes given below. A) 1, 2 and 3 only B) 2 only C) 1 and 4 only D) 1, 2 and 4 only Correct Answer: A When a Government borrows from people and repays them after a very long period, which of the following are likelyconsequences in the economy 1.Disposable income of people in the present will go down. 2.Consumption levels of people inthe present will go down. 3.National savings of the present day would fall. 4.It imposes a burden on future generations. Selectthe correct answer using the code given below A) 1 and 2 only B) 1, 2 and 3 only C) 1, 2 and 4 only

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D) 1, 2, 3 and 4 Correct Answer: D Consider the following statements about 'demerit goods'. 1.A demerit good is a good whose consumption is sociallyundesirable due to the perceived negative effects on the consumers themselves. 2.Governments often levy taxes on thesegoods. 3.All negative externalities are demerit goods and vice-versa Which of above statement(s) is/are true? A) 1 and 2 only B) 2 only C) 1,2 and 3 D) 1 only Correct Answer: A With reference to the term ‘Gender Budgeting’ sometimes seen in the news, which of the following statements is/arecorrect? 1.It ensures participation of women in budget making process 2.It ensures a gender perspective in policyformulation Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Which of the following can be used as a measure for fiscal consolidation in India? 1.Linking AADHAR number to bankaccounts of MGNREGA beneficiaries. 2.Implementing Goods and Services Tax (GST). 3.Minimizing tax expenditure. Selectthe correct answer using the code given below. A) 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to Government borrowings in India, consider the following statements:

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1.Excessive internal borrowings can lower private investment in the economy. 2.Monetised Deficit decreases the net holding of Treasury Bills by the Reserve Bank of India. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A The Expansionary fiscal policy by the government will include 1.Lowering of taxes 2.Increased budgetaryallocationtowards employment guarantee schemes by government. 3.Lowering of interest rates Select the correct answer using thecodes given below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1,2 and 3 Correct Answer: A With reference to the Monetary Policy Committee (MPC) of India, which of the following statement(s) is/are correct? 1.The MPC will be headed by the Finance minister. 2.Government and RBI will nominate three members each to thecommittee. 3.The MPC will have price stability and inflation targeting as its primary role. Select the correct answer using thecode given below A) 3 only B) 1 and 3 only C) 2 and 3 only D) 1,2 and 3 Correct Answer: C With reference to Fiscal Responsibility and Budget Management Act (FRBM), consider the following statement. 1.N.K. Singhpanel was setup for revising fiscal consolidation targets. 2.FRBM since its inception has been paused several times, as wellas targets have been reset. Which of the above statement(s) is/are correct?

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A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which of the following can lead to cost-push inflation? 1. Labour shortage in market 2. Increase in cost of credit 3.Hoarding Select the correct answer using the code given below. A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A A manufacturing company employs highly skilled workers for low skill and low paying jobs. Such situation refers to A) Frictional unemployment B) Underemployment C) Disguised unemployment D) Cyclical unemployment Correct Answer: B Structuralunemploymentrefers to the unemployment due to A) People changing from one job to another. B) Non-availability of work throughout the year. C) Cyclical nature of businesses. D) Mismatch between the jobs available and the skill levels of the unemployed. Correct Answer: D Stagflation can lead to which of the following in the economy? 1. Poor economic growth 2. High level of unemployment 3. Lowlevel of inflation Select the correct answer using the code given below. A) 1 and 2 only B) 3 only C) 1 and 3 only

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D) 1, 2 and 3 Correct Answer: A Which among the following correctly describes the term unemployment rate? A) It is the ratio of the number of unemployed people and the total population of the country. B) It is the ratio of labour force and the total working-age population. C) It is the ratio of the number of unemployed people and the number of people in the labor force. D) None of the above Correct Answer: C The term inflationary gap refers to the difference A) Between Consumer Price Index (CPI) and Wholesale Price Index (WPI). B) In inflation between developed and developing countries. C) In inflation of food and non-food items D) In real GDP and anticipated GDP with economy at full employment. Correct Answer: D Seasonal unemployment can be seen in which of the following sectors? 1. Agriculture 2. Tourism 3. Construction Select thecorrect answer using the code given below. A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following pairs: Type ofExampleStructural Unemployment: An unemployed worker from cycle industry becausepeopleare buying more carsCyclical Unemployment: Unemployment due to lowdown in economyFrictional Unemployment: Aperson leaving his job to prepare for civil services Which of the pairs given above is/are correctly matched? A) 1 and 2 only B) 2 and 3 only C) 3 only

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D) 1, 2 and 3 Correct Answer: D Which the following are the effects of inflation in the economy? 1.With the same wages purchasing power of people getreduced. 2.Savings rate may increase as a result of short-run effect of inflation. 3.Investment may be boosted as a result ofshort-run effect of inflation. Select the correct answer using the code below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to assessment of labour market condition, consider the following statements: 1.Labour Force ParticipationRate is the ratio of the number of persons in the labour force to the total population. 2.Unemployment Rate is the ratio of thenumber of unemployed persons to the total population. Which of the above statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A When there is a fall in the prices in an economy, it may lead to which of the following? 1.Increase in the demand forconsumption goods 2.Rise in the interest rates3.Increase in net exports Select the correct answer using the code givenbelow. A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C Consider the followings statements about Meldonium drug, recently seen in news: 1.It is a drug used by people with heartdisease.

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2.It aids oxygen uptake and endurance. 3.It is used by athletes as a performance enhancing drug. Which of thestatements given above is/are correct? A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D In Economics, what does the term Usual Principal Status indicate? A) Comparison of GDP of two different nations B) Employment status of a worker C) Principal amount invested by a person in the bank on a particular interest D) Status of Non-performing assets Correct Answer: B Which of the following factors is/are responsible for informalisation of labour force? 1.Pressure to cut cost of Production 2.Rigid labour laws 3.Demand - supply imbalance of labour force Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D In an economy, head count ratio is the measure of: A) Unemployment B) Poverty C) Literacy D) Malnutrition Correct Answer: B Consider the following statements regarding Employment Elasticity of Growth: 1.It is the percentage change in employment of labour force in response to percentage change in population growth.

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2.Additional labour force can be suitably employedonly when employment elasticity of growth is high. 3.In India, employment elasticity has shown a declining trend in the pastdecade. Which of the statements given above is/are correct? A) 3 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C In Indian Economy, who are Marginal Workers? A) Those workers who work less than 6 months in a year. B) Those workers who work over less than 1 hectare of land. C) Those workers who use out-dated technologies. D) Those workers who have not worked anytime in the year. Correct Answer: A Consider the following pairs: Type of Unemployment Example 1. Structural Unemployment: Unemployment in cycle industry because People are buying more cars 2. Cyclical Unemployment: Unemployment due to slowdown in

Economy 3. Frictional Unemployment: A person leaving his job to prepare for civil

Services

Which of the pairs given above is/are correctlymatched? A) 1 and 2 only B) 2 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: D Which of the following is/are the characteristics of recession? 1.General fall in demand 2.High inflation 3.Fall in employmentrate Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only

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C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Consider the following statements with reference to relative and absolute poverty: 1.Relative poverty is defined as the condition under which one cannot afford 'the minimum provision needed to maintain health and workingefficiency'. 2.Absolute poverty is the condition in which people lack the minimum amount of income needed in order tomaintain the average standard of living in the society in which they live. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Consider the following statements regarding Labour Force Participation Rates (LFPR): 1.It is obtained by dividing the numberof persons in the labour force by total population. 2.The LFPR for women is significantly lower than that for males in both rural and urban areas. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which of the following persons can be classified as a worker as per Indian census classification? 1.Women working as a parttime worker in a family enterprise without any wages 2.Women bringing woods from forest for cooking food for herHousehold 3.16 year old adolescent working in family owned tea stall 4.70 year old man watering the Community parkwithout any remuneration Select the correct answer using the code given below. A) 2 and 3 only B) 1 and 3 only C) 1, 3 and 4 only

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D) 1, 2, 3 and 4 Correct Answer: B Consider the following statements: 1.Headline inflation excludes those commodities from its basket which are volatile in short-term. 2.Core inflation is a correct measure of inflation in long term. 3.Consumer Price Index (CPI) is the measure ofheadline inflation in India. Which of the following statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C Consider the following factors: 1.Increase in government expenditure 2.Rising population and householdConsumption 3.Buying and selling of real estate in urban areas 4.Fluctuations in output and supply 5.Increase in administered prices Which of the above is/are attributed to the demand-pull factors of inflation? A) 1, 2 and 3 only B) 1, 3 and 5 only C) 2, 3 and 4 only D) 4 and 5 only Correct Answer: A With reference to Inflation Targeting, consider the following statements: 1.It indicates the primacy of price stability as the keyobjective of fiscal policy by the government. 2.It aims to target wholesale price index. 3.It was recommended by Nachiket More Committee. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) None Correct Answer: D

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Which among the following employment are part of unorganised sector in India? 1.Sweeper working in PWD department oncontract basis 2.Household industry with 8 employees 3.Rickshaw puller 4.Domestic servant Select the correct answer usingthe code given below. A) 1, 2 and 4 only B) 1 and 3 only C) 2, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following economic reforms would help in curtailing 'unnatural inflation', which arises due to supply sideconstraints? 1.GST act 2.Model APMC act 3.FDI in multi brand retail Select the correct answer using the codes given below. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following inflation indices are released by Central Statistical Office (CSO)? 1.CPI (Combined) 2.Wholesale PriceIndex (WPI) 3.Consumer Food Price Index (CFPI) 4.CPI (Industrial Worker) Select the correct answer from the code givenbelow. A) 1 and 3 only B) 1, 3 and 4 only C) 1, 2 and 4 only D) 2 and 3 only Correct Answer: A Consider the following statements about the high inflationary pressure being experienced from the past decade in India: 1.It is both cyclical and structural in nature.

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2.High global commodity prices have increased inflationary pressure on the local markets. 3.Improper fiscal policies have led to increase in the inflationary pressure. Which of the following statements givenabove is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following policies of government can lead to increase in inflation? 1.Greater number of social sectorschemes by government 2.Increase in Minimum Support Prices 3.Import of pulses at cheaper price 4.Accepting 7th paycommission's recommendations Select the correct answer from the code given below. A) 1 and 2 only B) 2 and 3 only C) 1, 2 and 4 only D) 2, 3 and 4 only Correct Answer: C With reference to the impact of fall in crude price on inflation in India, consider the following statements: 1.It has benefitedurban consumers more than the rural consumers. 2.It has impacted WPI (fuel) component more than the CPI (fuel) component. Select the answer using the correct code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which of the following factors can be attributed to growth of unemployment in India? 1.Slow growth in agricultural andindustrial productivity. 2.Slow expansion of manufacturing sector 3.Concentration of investment in capital goodsindustry. Select the correct answer using the code given below. A) 1 and 2 only

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B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following correctly describes the concept of Inflationary gap? A) It is the difference between current levels of real and nominal GDP B) It is the difference between current level of real GDP and potential GDP when economy experiences full employment. C) It is the reduction in inflation caused due to low consumption expenditure. D) It is the minimum amount of inflation that is desired in economy to incentivise production of goods and services. Correct Answer: B Which of the following measures can lead todecline in inflation? 1.Reduction in government expenditure 2.Increase in directTaxes 3.Reduction of indirect taxes Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 3 only D) 1, 2 and 3 Correct Answer: D Which of the following fall under the unorganised sector employment? 1.Agricultural labourers 2.Self-employed who do workwithout hired workers 3.Construction workers Select the correct answer using the code given below. A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following can be the effects of inflation? 1.Debtors gain and creditors lose. 2.Equity holders earn moreincome. 3.Reduction in exports.

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4.Domestic currency depreciates. Select the correct answer using the code given below. A) 1 only B) 1, 3 and 4 only C) 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: D A farmer has four acres of land and he needs only two workers and himself to carry out various operations on his farm in ayear, but he employs five workers and his family members such as his wife and children. Which of the following correctlydescribes the above phenomenon? A) Open unemployment B) Disguised unemployment C) Seasonal unemployment D) Overemployment Correct Answer: B Casualisation of workforce indicate rise in: 1.Self employment 2.Regular salaried employment 3.Rise in daily wagers and contract labourers Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 3 only D) 1 and 3 only Correct Answer: C In context of the Indian economy, which of the following measures can be used to reduce inflation? 1.Increasing CashReserve Ratio (CRR) 2.Increasing Statutory Liquidity Ratio (SLR) 3.Reducing fiscal deficit. 4.Reducing Reverse RepoRate. Select the correct answer using the codes below: A) 1 and 2 only B) 3 and 4 only C) 1, 2 and 3 only D) 1, 2, 3 and 4

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Correct Answer: C Match the following sets of pairs. Unemployment Type Definition 1. Structural Unemployment A. Associated with fundamental shifts

In economic structure of the country 2. Disguised Unemployment B. When productivity of the person is zero 3. Open Unemployment C. When labour is without work due to

unavailability of work for them 4. Frictional Unemployment D. Unemployment generated due to change

in Market conditions. Select the correct answer using the codes given below. A) 1-B, 2-A, 3-D, 4-C B) 1-A, 2-B, 3-C, 4-D C) 1-A, 2-B, 3-D, 4-C D) 1-B, 2-A, 3-C, 4-D Correct Answer: B Which of the following parameter(s) have never been accounted in the calculation of poverty in India before the Rangarajancommittee report on poverty? 1.Cost of basic education 2.Health expenses 3.Nutrition based expenses Select the correctanswer using the code given below. A) 1 only B) 2 and 3 only C) 3 only D) 1, 2, and 3 Correct Answer: C Consider the following statements: 1.Headline inflation excludes items that face volatile price movement, notably food and energy. 2.Core inflation may not give an accurate picture of how an economy is behaving as it includes food and energycommodities. Which of the statements given above is/are incorrect? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2

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Correct Answer: C Which of the following is/are subject to change due to inflation in an economy? 1.The Cost of Borrowing 2.Disposable Income 3.Business competitiveness Select the correct answer using the codes given below. A) 2 and 3 only B) 1 and 3 only C) 1 only D) 1, 2 and 3 Correct Answer: D Which among the following indices doesn’t reflect imported inflation? A) Consumer Price index B) Wholesale Price Index C) GDP Deflator D) Producer Price Index Correct Answer: C Phillips curve shows the relationship between unemployment and inflation in an economy. With reference to this, considerthe following statements: 1.As a rate of inflation increases, the employment rate also increases. 2.The principal of a Phillip’s curve contradicts the Misery index/Stagflation. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to the concepts of poverty, consider the following statements. 1.Poverty gap Index is the measurement ofincidence and depth of poverty. 2.Misery Index is used to measure inequality of income or assets. 3.Lorentz curve representsthe relation between unemployment rate and inflation. Which of the statement(s) given above is/are correct? A) 1 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3

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Correct Answer: 1 only Consider the following statement about Purchasing Power parity 1.It is based on “Law of one price” 2.It is used to comparestandard of living of people in different country. 3.It is used to determine relative value of currency Select the correctstatement(s) from the code given below A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following parameters would have inflationary effect on the Indian economy? 1.RBI decreasing the CashReserve Ratio (CRR) 2.RBI goes through the process of Sterilization 3.Crisis of crude oil in InternationalMarket 4.Government rationalize the subsidies on goods and services Select the correct answer using the codes given below A) 1 and 3 only B) 1, 3 and 4 only C) 2 and 4 only D) 1, 2 and 4 only Correct Answer: A Which of the following can lead to cost push inflation? 1.Natural disasters 2.Increased demand of labour 3.Increase in globalcrude oil prices 4.Depletion of natural resources 5.Festive season in India Select the correct answer using the codes givenbelow. A) 3 and 4 only B) 2, 3 and 4 only C) 1, 2, 3 and 4 only D) 1, 2, 3, 4 and 5 only Correct Answer: C

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The report “shock waves: Managing the impacts of Climate Change on Poverty” that was released in 2015 has to do with which of the following international organizations? A) Asian Infrastructure Investment Bank B) New Development Bank C) World Bank D) Asian Development Bank Correct Answer: C Which among the following will be gainers in time of high inflation? 1.Creditors 2.Debtors 3.Salaried Individual 4.Developing Economies Select the correct answer using the codes given below. A) 2 and 4 only B) 2 only C) 1, 3 and 4 only D) 2, 3 and 4 only Correct Answer: B With reference to the current poverty line of India, consider the following statements. 1.Current poverty line is based uponTendulkar committee 2.It is based upon daily per capita expenditure 3.It is calorie based poverty estimation 4.A uniformpoverty line basket (PLB) across rural and urban India. Which of the statement(s) given above is/are correct? A) 1 and 4 only B) 1, 2 and 4 only C) 3 only D) 1, 2, 3 and 4 Correct Answer: A Consider the following statements about 'chit funds in India': 1.They are a type of saving scheme. 2.State governments areresponsible for their registration. 3.NRIs cannot invest in chit funds. Which of the statements given above is/are correct? A) 1 and 2 only

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B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: A Consider the following statements: 1.Capital Account convertibility facilitates Trade -related payments andremittance. 2.Current account convertibility deals with creation and liquidation of assets by other countries in localmarkets. Which of the statements given above is /are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Consider following statements regarding components of "double financial repression": 1.Statutory liquidity ratio (SLR) andPriority sector lending (PSL) requirements are a repression on the asset side. 2.Rising Non-Performing Assets (NPAs) andreduction in household’s financial savings are a repression on the liability side. Which of the statements given above is/arecorrect? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Depreciation of value of a currency, due to market forces of demand and supply, may result in which of thefollowing? 1.Increased value of remittances country receives 2.Increase in trade deficit 3.Increase in Exports 4.Rise ininflation Select the correct answer using the code given below. A) 1, 2 and 3 only B) 1, 3 and 4 only C) 2 and 4 only D) 1, 2, 3 and 4

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Correct Answer: D The "Gross" concept of income accounting can be changed to "Net" concept by: A) Adjusting for inflation B) Adjusting for Exchange rate fluctuations C) Adjusting for Bad debts of banks and other financial institutions D) Adjusting for Depreciation Correct Answer: D With reference to Indian economy, consider the following: 1.Increase in Bank rate 2.Increase in rates of incomeTax 3.Decrease in expenditure on healthcare 4.Open Market Operations by the RBI Which of the above is/are fiscal policymeasures? A) 1 only B) 2 and 3 only C) 1, 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: B Consider the following statements regarding 'Import Substitution': 1.It aims to encourage domestic industries gain self sufficiency in merchandise as well as services. 2.Import control and tariffs are methods for import substitution. 3.DefenceIndigenisation in India is an example of import substitution. Which of the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to models of taxation at different stages of investment, consider the following statements: 1.The Exempt,Exempt, Exempt (EEE) model is likely to give higher returns on investment on Exempt, Exempt, Tax (EET) model. 2.TheEET model incentivizes postponement of consumption. 3.EEE status is enjoyed by long term investment vehicles such asPublic Provident Fund (PPF).

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Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements with regard to depreciation: 1.It refers to that portion of the capital goods which goes inmaintenance and replacement of existing goods due to wear and tear. 2.It takes into account unexpected and suddendestruction caused due to natural calamities. 3.To obtain gross investment in an economy, depreciation is subtracted fromthe net investment. Which of the statements given above is/are correct? A) 1 and 2 only B) 2 and 3 only C) 1 only D) 1 and 3 only Correct Answer: C Which of the following is correct regarding Giffen goods? A) The demand of Giffen goods decreases with an increase in their prices. B) The demand of Giffen goods increases with an increase in their prices. C) The demand of Giffen goods does not change with a change in their prices. D) The demand of Giffen goods increases with a decrease in their prices. Correct Answer: B Consider the following statements with regard to Price Elasticity of Demand of a good: 1.It is the ratio of percentage changein the demand of a good to the percentage change in its price. 2.For an inelastic good the Price Elasticity of Demand is less. Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C

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Which of the following indicator(s) helps in assessing the health of both services and manufacturing sector? 1.Wholesale Price Index 2.Purchasing Manager Index 3.Index of Industrial Production Select the correct answer using the code givenbelow. A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: B In an economy, base effect refers to: A) The impact of rise of increased per capita income on direct tax revenue. B) The impact of rise in price level in the previous year over the corresponding rise in price levels in current year. C) The impact on lending capacity of the banks due to slowdown in the economy. D) The impact on exchange rate due to lower growth in the economy. Correct Answer: B Which of the following are the Direct taxes in India? 1.Estate Tax’ 2.Security Transaction Tax 3.Capital GainsTax 4.Professional Tax Select the correct answer using the code given below. A) 1 and 2 only B) 1, 3 and 4 only C) 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following is/are the likely impacts of salary hike on a market in equilibrium? 1.There will be higher demand forgoods. 2.Consumers will spend less on an inferior good and shift to superior goods. 3.Suppliers will increase supply owing tohigher demand, with no impact on equilibrium. Select the correct answer using the code given below.

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A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Consider the following statements with regard to private and public goods: 1.Private goods are rivalrous in nature whichmeans that its consumption by one individual prevents another individual from consuming it. 2.Public goods are none xcludable in nature which means there is no feasible way of excluding anyone from enjoying the benefits of the good. Whichof the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Consider the following statements with reference to Economically Active Population': 1.It is the population in the age groupof 15-59 years. 2.It has increased in the last two decades in India. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which among the following correctly describes skewf lation in an economy? A) It refers to a situation of inflation combined with a slow growth rate and a relatively high unemployment rate. B) It refers to a sustained, across-the-board price increase in the market. C) It refers a price rise in one or a small group of commodities over a sustained period of time along with decreasing prices in others. D) None of the above Correct Answer: C Which of the following are part of liberalisation policy of the government? 1.De-reservation of sectors which werereserved for small scale industry.

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2.De-licensing 3.Disinvestment 4.Easing quantitative restrictions on imports 5.Allowing establishment of private sector banks, both Indian as well as foreign. Select the correct answer using the code given below. A) 1 and 5 only B) 2, 3 and 4 only C) 1, 2, 4 and 5 only D) 1, 2, 3, 4 and 5 Correct Answer: C Which of the following initiatives have helped to increase the agricultural productivity in India? 1.Supply of High YieldVariety (HYV) seeds 2.Supply of chemical fertilizers 3.Improved irrigation methods Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements with reference to tariffs and quotas: 1.While tariffs directly impact the value of imports,quotas aim to curb the volume of imports. 2.Both tariffs and quotas restrict imports and protect the domestic firm. Which of theabove-mentioned statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which of the following is/are characteristics of a capitalist system of economy? 1.Income equality 2.Production forprofit 3.Minimal government intervention. Select the correct answer using the code given below.

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A) 1 and 2 only B) 2 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: B Consider the following statements regarding India's new Intellectual Property Rights policy 2016: 1.It suggests makingDepartment of Science & Technology as the nodal agency for all IPR issues. 2.It is entirely in compliant with the WTO’sagreement on TRIPS. 3.It aims to remove Compulsory Licensing clause from India's Patents Act. Which of the statementsgiven above is/are correct? A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: B In what way are labour reforms expected to benefit the Indian economy? 1. Improving ease of doing business 2.More formalisation of the work force 3.Providing social security for workers 4.Increasing participation of women in the workforce Select the correct answer using the code given below. A) 1, 2 and 4 only B) 3 and 4 only C) 1, 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: D A situation where any advantage given by one member of the WTO to another member must be extended to all WTOmembers is termed as the A) Trade diversion principle B) Intra-regional principle C) Most Favoured Nation principle D) Comparative advantage principle Correct Answer: C

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With reference to the viability gap funding scheme, consider the following statements: 1.It provides both financial andtechnical support to projects undertaken through PPPs. 2.It is available for social and physical infrastructure. 3.The scheme isadministered by the Ministry of Industry and Commerce. Which of the statements given above is/are correct? A) 1 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: C Consider the following statements about Public Distribution System (PDS): 1.It is operated under the joint responsibility of theCentral and the State Governments. 2.It is intended to make available the entire requirement of food grains distributed to any household in India. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Consider the following major crops of India: 1.Wheat 2.Rice 3.Pulses Arrange the above crops in their decreasing order ofarea under cultivation. A) 1-2-3 B) 2-1-3 C) 3-1-2 D) 3-2-1 Correct Answer: B Which of the following is/are limitations of organic farming? 1.Organic produce has lesser yields than modern agriculturalfarming. 2.Organic farming generates less labour employment than conventional farming. 3.Organically grown food has lessnutritional value than chemical farming.

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Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A With reference to International Finance Corporation, consider the following statements: 1.It is an arm of the International Monetary Fund. 2.It offers rupee denominated masala bonds. 3.It gives interest free loans to world's poorest countries. Whichof the statements given above is/are correct? A) 1 only B) 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B With reference to 'Diamond Quadrilateral' project, consider the following statements: 1.It aims to connect the four metrocities of Delhi, Mumbai, Chennai and Kolkata. 2.It will assist in improving high speed rail connectivity in the country. Which ofthe statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C In the context of agricultural credit, consider the following statements: 1.Formal sources account for more than 80 per centshare of total agricultural credit. 2.The ratio of agricultural credit to agricultural GDP has steadily declined since the economicreforms in 1990s. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2

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Correct Answer: D Which of the following is/are the key challenges that horticulture sector faces in India? 1.Post-harvest losses. 2.Lack of qualityplanting material. 3.Lack of market access for horticulture produce of small farmers. Select the correct answer using the codegiven below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which among the following form basis of international trade? 1.Difference in natural resources 2.Size of population 3.Extent offoreign investment Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following is/are steps taken by the government to improve 'Ease of Doing Business' in India? 1.Establishment of Real Estate Investment Trust (REITs) 2.Ratification of WTO's Trade Facilitation Agreement 3.Implemention of Goods andServices Tax (GST) Select the correct answer using the code given below. A) 1 and 3 only B) 1, 2 and 3 C) 1 and 2 only D) 3 only Correct Answer: B Consider the following statements regarding 'internationalization of currency'?

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1.It refers to the widespread use of any givencurrency outside the country the currency originated in. 2.The level of currency internationalization for a currency isdetermined by its demand and convertibility in foreign markets. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Consider the following pairs: Type of Features Preferential Trade Agreements (PTA) 1. Customs : a common currency Unionand completely integrated monetary and exchange rate policy 2.Common: free movement of all Market factors of productionwithin the PTA, including labour and capital. 3.Free Trade: a preferential Agreement arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with nonmembers. Which of the pairsgiven above is/are correctly matched? A) 2 and 3 only B) 1 and 2 only C) 1, 2 and 3 D) 1 and 3 only Correct Answer: A Which of the following best describes „Superhydrophobic cotton‟, recently seen in news? A) It can keep soldiers in Siachen warm due to its high thermal resistance B) It is capable of absorbing oil both in airand under water C) It can instantly disinfect wound byremoving all dirt and microbes D) It can provide instant relief from High Altitude Pulmonary Edema Correct Answer: B Which of the following statements is/are correct with regard to the term 'deemed exports' in context of India's foreign tradepolicy? 1.These refer to those transactions in which goods supplied are always outside the country. 2.Their payment isreceived either in Indian Rupees or in free foreign exchange.

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Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Consider the following pairs: 1.Mixed: involves agriculture livestock and animals together Farming as a principle of co- existence 2.Migratory : animals need to livestock move in search of Farming fodder and water 3.Organised : animals are reared livestock and managed Farming through scientific practice Which of the pairs given aboveare correctly matched? A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following is/are correct with reference to the Dairy Processing & Infrastructure Development Fund? 1.It focuseson building an efficient milk procurement system. 2.The fund is to be managed by National Bank for Agriculture and RuralDevelopment (NABARD). Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which of the following conditions can lead to depreciation of Indian Rupee? 1.Increase in Indian imports. 2.Rise in interestrates of Government of India bonds. Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2

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D) Neither 1 nor 2 Correct Answer: A Which of the following provisions is not mentioned in the new model- 'The State/UT Agricultural Produce and Livestock’sMarketing (promotion and facilitation) Act, 2017'? A) It defines each state/UT as a single unified market area. B) Traders would be able to transact in allmarkets within a state by paying a single fee. C) It prohibits private players from settingup new market yards. D) Rationalization of mandi fees and taxes. Correct Answer: C With reference to Multilateral Investment Guarantee Agency, which of the following statements are correct? 1.It aims topromote FDI in the developing countries. 2.It is a part of the World Bank Group. 3.India is its member. Select the correctanswer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to the National Dairy Plan, consider the following statements: 1.It aims to increase the productivity of milch animals. 2.It aims to provide rural milk producers with greater access to the organized milk-processing sector. 3.It isimplemented through National Dairy Development Board. Which of the statements given above are correct? A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements regarding the Green Box subsidies under theAgreement on Agriculture: 1.These subsidieshave to be governmentfunded.

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2.No limits are prescribed for these subsidies. 3.These include subsidies for environmental protection and regional development programmes. Which of the statements given above is/are correct? A) 3 only B) 1 and 2 only C) 1, 2 and 3 D) None Correct Answer: C When RBI changes the monetary policy stance from accommodative to neutral, it implies A) greater scope for cut in interest rates B) less scope for cut in interest rates C) greater scope for deficit financing D) less scope for deficit financing Correct Answer: B The States in India can borrow from which of the following source/sources? 1.RBI 2.Foreign agencies 3.Centre Select thecorrect answer using the code given below. A) 1 and 3 only B) 3 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: A Consider the following statements about National Green Corridor Programme: 1.It aims to develop green corridors alongNational Highways for sustainable environment and inclusive growth. 2.National Highways Authority of India is a nodalagency for its implementation. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D

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The term Price Deficiency Payment, often seen in news, refers to A) payments provided on targeted produceif the price falls below the minimum support price. B) subsidy provided to manufacturers ofgeneric medicine. C) cash incentives to promote institutionaldelivery among poor pregnant women. D) None of the above Correct Answer: A. With reference to the Decentralized Procurement Scheme, consider the following statements: 1.It aims to ensure that MSP ispassed on to the farmers. 2.Under the scheme, the State Governments incur the entire expenditure on the procurementoperations. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A With reference to the Ready-to-UseTherapeutic Food, consider the following statements: 1.It can improve the nutrient intakeof children suffering from malnutrition. 2.It has been made an integral part of Integrated Child Development Services programme Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A 'Bharatmala' and 'SetuBharatam' are projects related to: A) Highways B) Railways C) Port Development D) Optical Fibre Networks Correct Answer: A Consider the following statements regarding the Agriculture Census:

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1.It is conducted annually by the National SampleSurvey Organization. 2.According to it, the average size of land holdings has shown a steady declining trend since 1970-7 1.Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B With reference to International Monetary Fund (IMF), consider the following statements: 1.It helps member nations correctany balance of payments crisis. 2.The quota share of each nation is determined by the size of the economy only. Which of thestatements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which of the following are sub-missions of the National Livestock Mission? 1.Improving availability of quality feed andfodder. 2.Development of piggery in the northeastern region. 3.Skill development and technology extension services. Selectthe correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements with reference to the Interest Subvention Scheme: 1.It is a scheme to enableentrepreneurs to set up small businesses in rural areas. 2.It is implemented by NABARD and RBI. Which of the statementsgiven above is/are correct? A) 1 only B) 2 only C) Both 1 and 2

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D) Neither 1 nor 2 Correct Answer: B India‟s first mega coastal economic zone will be setup in which of the following states? A) Maharashtra B) Gujarat C) Andhra Pradesh D) Tamil Nadu Correct Answer: A With reference to Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII), consider the following statements: 1.FDI helps in increasing capital availability in market, while FII only targets specific sectors. 2.FDI is considered more stable than FII. Which of the statements given above is/are correct? a) 1 only b)2 only c)Both 1 and 2 d)Neither 1 nor Correct Answer: B In the context of horticulture in India, consider the following statements: 1.The production of horticulture has outpaced the production of food grains in India. 2.India has witnessed sharper increase in acreage of horticulture crops compared to Foodgrains in past few years. 3.Fruits constitute more than 50 per cent of total horticulture production. Which of thestatements given above are correct? A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A With reference to the Toll-Operate-Transfer (TOT) model used by National Highway Authority of India, consider the followingstatements: 1.Under this model, the right of collection of toll on existing highway stretches is auctioned.

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2.It is applicable only to highways built through public funding. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Consider the following statements about the Indian Council of Agricultural Research (ICAR): 1.It is an autonomousorganization under Ministry of Agriculture and Farmers Welfare. 2.Krishi Vigyan Kendras are established by ICAR to providetechnology support to farmers. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which among the following can help in doubling the incomes of the farmers? 1. Reduction of post-harvest losses 2.Reformsin Agriculture Marketing 3.Improvement in irrigation efficiency 4.Pradhan Mantri FasalBima Yojana (PMFBY) Select thecorrect answer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 1, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following will be recorded inIndia‟s balance of payments? 1.An Indian citizen buying a house inGermany. 2.Indian resident working as a welder in Saudi Arabia. 3.Tourists from Delhi visiting Lakshadweep, spending onsightseeing and food. Select the correct answer using the code given below. A) 2 only B) 1 and 2 only

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C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B With reference to the Metro Rail Policy, 2017, consider the following statements: 1.It provides for a regulatory authority to beset up by the central government for timely revision of fares. 2.It makes the state government responsible for land acquisitionand environmental clearance to avoid delays. 3.It makes private participation mandatory. Which of the statements givenabove is/are correct? A) 2 and 3 only B) 1 and 2 only C) 1, 2 and 3 D) 3 only Correct Answer: A The term 'special purpose vehicle', often seen in the news, is in the context of: A) A business association formed for a specific, well-defined purpose. B) Refrigerated trucks used in food processing for perishable items. C) A specific form of security offered to an investor in exchange for an equity stake in the company. D) A business agreement in which the parties agree to develop, for a finite time, new assets by contributing equity. Correct Answer: A Consider the following statements about functions of Securities and Exchange Board of India: 1. It regulates the business ofthe stock market and other securities market. 2. It prohibits insider trading in securities market. 3. It promotes awarenessamong investors and training of intermediaries about safety ofmarket. Which of the statement given above are correct? A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following in respect of Niryat Bandhu Scheme:

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1. It has been galvanized to achieve the objective of Skill India. 2.It is organized for MSME sector. 3. It provides export subsidies to exporters. Which of the statements given above arecorrect? A) 1, 2 and 3 B) 2 and 3 only C) 1 and 2 only D) 1 and 3 only Correct Answer: C Expenditure method of national income accounting takes into account, which of the following expenditures? 1. Investmentexpenditure 2. Governmentexpenditure onpensions and scholarship 3. Expenditure on shares and bonds Select the correctanswer using the code given below. A) 2 only B) 1 and 3 only C) 1, 2 and 3 D) 1 only Correct Answer: D Which of the following is levied on imported goods to offset subsidies made to producers in the exporting country? A) Import Duty B) Export Duty C) Excise Duty D) Countervailing Duty Correct Answer: D In India, Foreign Direct Investment is prohibited in which of the following sectors? 1. Betting and gambling activities 2. AtomicEnergy 3. Cigars and cigarette manufacture 4. Chit funds Select the correct answer using the code given below. A) 1, 2 and 4 only B) 2, 3 and 4 only C) 1 and 3 only D) 1, 2, 3 and 4

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Correct Answer: D In the context of Indian economy, which of the following constitute export of services? 1. An Indian tourist visiting Mauritius. 2.Bharti Airtel setting up its operations in Africa. 3. An Indian IT company selling software to a Chinese firm. 4. A Pakistaninational visiting India for liver transplant. Select the correct answer using the code given below. A) 1, 2, and 3 only B) 4 only C) 2, 3 and 4 only D) 2 and 4 only Correct Answer: C With reference to the Global Hunger Index, consider the following statements: 1. It is released by the International FoodPolicy Research Institute (IFPRI). 2. It ranks countries on the basis of food grains production. Which of the statements givenabove is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which among the following form a part of revenue expenditure? 1. Interest Payments 2. Subsidies 3. Pensions 4.Salaries Select the correct answer using the code given below. A) 2, 3 and 4 only B) 1 and 3 only C) 1, 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following are correct with reference to the National Pension System (NPS)? 1. It is a contribution-based pensionscheme.

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2.It provides market-based returns to the beneficiaries. 3. It is limited to government employees. Select the correctanswer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A With reference to debentures, consider the following statements: 1. A debenture is a bond with no collateral or assetsbacking the debt. 2. Debentures investors enjoy right to vote for members of the board of directors and financial issuesaffecting the company. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Consider the following statements regarding the recently constituted Economic Advisory Council to the Prime Minister: 1. Itsfunction is to advise on issues of macroeconomic importance. 2. It is a 5-member body including the Governor of the RBI. 3. Itfunctions under the chairmanship of the Union Finance Minister. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B With respect to Indian economy, consider the following statements: 1. Reserve Bank of India uses Wholesale Price Indexinflation to manage monetary policy expectations. 2. All Consumer Price Indices are released by the Central Statistical Organisation (CSO) under Ministry of Statistics and Programme Implementation. Which of the statements given above is/arecorrect? A) 1 only B) 2 only

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C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Which of the following price indices is/are released by Central Statistical Office (CSO)? 1. Wholesale Price Index 2.Consumer Food Price Index 3. GDP Deflator Select the correct answer using the code given below. A) 1, 2 and 3 B) 2 and 3 only C) 3 only D) 2 only Correct Answer: B Which of the following best describes 'Care Economy'? A) It is an economic system in which deliberate attention is paid to good governance policies for the dependent population. B) It consists of the work done by women at home taking care of the household chores. C) It is an economic system in which genuine care for people and nature is the top priority. D) It refers to the philosophy of making investments in demographic dividend to ensure better economic results in future. Correct Answer: B With reference to Minimum Alternate Tax, consider the following statements: 1.It is a direct tax that facilitates the taxation of'zero tax companies'. 2.It is also levied on high net worth individuals whose income exceeds a certain limit. 3.It can be leviedon portfolio investors and corporations with FDI in India. Which of the statements given above is/are correct? A) 1 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A With reference to tariffs, consider the following statements:

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1.The domestic consumers benefit from the imposition oftariffs 2.The domestic demand for the good increases. Which of the statements given above is/ are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Which of the following best describes 'Tax Expenditure'? A) It is the expenditure incurred by the government during collection of tax. B) It is the revenue forgone by the government on account of exemptions on income and corporate tax. C) It is the revenue forgone on account of exemptions on indirect taxes. D) It is the expenditure made by the government from the income accrued through taxes. Correct Answer: B Consider the following statements regarding Real Estate (Regulation and Development) Bill, 2016: 1.It seeks to set up RealEstate Regulatory Authority (RERA) in both states and union territories. 2.It does not cover municipal bodies and governmentprojects. 3.It regulates both commercial and residential real estate projects. Which of the statements given above is/arecorrect ? A) 1 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following items are included as revenue receipts? 1.Tax revenue 2.Non-tax revenue 3.Recoveries ofloans 4.Borrowing and other liabilities Select the correct answer using the code given below. A) 1 and 2 only B) 1, 2 and 3 only C) 3 and 4 only

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D) 1, 3 and 4 only Correct Answer: A Consider the following statements: 1.Public goods are non-rival in their consumption but excludable. 2.Common resourcesare non-rival in their consumption and are non-excludable. 3.Private goods are rival in their consumption andexcludable. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: C With reference to currency appreciation, consider the following statements: 1.It may lead to increase in exports. 2.It may helpin controlling inflation. 3.Increase in NRI deposits leads to currency appreciation. Which of the statements given above is/arecorrect? A) 1 and 3 only B) 2 and 3 only C) 1, 2 and 3 D) None Correct Answer: B With reference to negative income tax, consider the following statements: 1.Negative income tax is the money paid bygovernment to citizens who earn below a certain prescribed limit. 2.It allows the claimants to receive income through simplefiling of tax returns. 3.It may reduce the demand for welfare benefits. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements with reference to tariffs and quotas: 1.While tariffs directly impact the value imports,quotas aim to curb the volume of imports.

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2.Both tariffs and quotas restrict imports and protect the domestic firm. Which of theabove mentioned statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to Stabilization Measures consider the following statements: 1.It aims to maintain steady price levels andgrowth rate of the economy. 2.Tax collection and securities reforms are for achieving it. 3.It ensures effective functioning ofmarkets at optimum level. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following factors may increase the level of inflation in an economy? 1.Deficit financing 2.Reduction in Indirecttaxes 3.Increase in Black money in the economy 4.Defective supply chain Select the correct answer using the code givenbelow. A) 1 and 2 only B) 2 and 3 only C) 1, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: C Addition of which of the following into Net National Product at market prices would convert it into National DisposableIncome of a country? 1.Remittances from foreign countries. 2.Gifts to residents from foreign citizens. 3.Amount received in theform of aid. 4. Surplus of merchandise export. Select the correct answer using the code given below. A) 1 and 4 only B) 1, 2 and 3 only

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C) 2, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: B With reference to Quantitative Restrictions, consider the following statements: 1.It is a restriction in the form of tariffsimposed on imports. 2.It helps in reducing Balance of Payments (BOP) deficit. Which of the statements given above is/arecorrect? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Consider the following statements regarding 'Substitutes' and 'Complementary' goods? 1.Demand for a good moves inopposite direction of the price of its complementary goods. 2.Demand of a good usually moves in the direction of the price ofits substitutes. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Aggregate demand for final goods in an economy is generated though which of the following? 1.Consumptionexpenditure 2.Investment expenditure 3.Government expenditure Select the correctanswer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 1 only D) 1, 2 and 3 Correct Answer: D Consider the following statements with regard to investment in an economy: 1.It refers to the addition to the stock ofphysical capital.

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2.'Investment goods’ are part of the intermediate goods like raw materials. Which of the statements givenabove is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which among the following correctly describes the Chakravyuha challenge in Indian economy? A) It refers to the problems faced by the firms in closing their operations. B) It refers to the government's inability to control both fiscal and current account deficit. C) It refers to the problems faced by the public sector banks due to dual control of RBI and finance ministry. D) None of the above Correct Answer: A Which of the following can be considered as legal tenders? 1.Currency notes issued by the RBI 2.Coins issued by theGovernment 3.Cheques issued by a private person . Select the correct answer using the code given below. A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: A Which of the following can be the sources of human capital formation? 1.Investment in education 2.Migration 3.Investment inHealth 4.Job training Select the correct answer using the code given below. A) 1, 2 and 3 only B) 3 and 4 only C) 1, 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: D

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Consider the following statements with respect to the worker population ratio in India: 1.The worker population ratio in urbanIndia is more than that in rural India. 2.The worker population ratio of urban women is greater than that of rural women. Whichof the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Consider the following statements with regard to the Gini Coefficient: 1.It depicts the economic inequalities prevailing in thecountry. 2.Its value ranges from 0 to 1, with 0 representing high inequality and 1 representing that there is no incomeinequality in the country. Which of the above statement/statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A The official data on poverty released in India is estimated on the basis of consumption expenditure data collected by A) Office of Economic Advisor B)Labour Bureau C) National Sample Survey Organisation (NSSO) D) Central Statistical Office (CSO) Correct Answer: C Which among the following is/are likely to result in the current account surplus in the Balance of Payments (BoP)? 1.Increasein the remittances received from abroad. 2.Sale of Bonds by Reserve Bank of India in the global market. 3.Fall in global oilprices Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 3 only

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D) 1, 2 and 3 Correct Answer: B Which of the following factors can lead to fall in Indian exports? 1.Global slowdown 2.Low global commodityPrices 3.Deprecation of currency Select the correct answer using the code given below. A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: A With reference to Foreign Institutional Investors (FIIs), consider the following statements: 1.A foreign investment to acquiremore than 10% shares of a company is categorised as Foreign Institutional Investment. 2.FIIs can invest only in companieslisted on the stock exchange. Which of the following statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Which of the following steps can help in making domestic production of steel sustainable? 1.Decreasing basic customsduties on certain primary iron and steel products. 2.Imposing anti-dumping duties on steel imported from other nations. Selectthe correct answer using the code given below: A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Which among the following steps can be taken to improve ease of doing business in India? 1.Implementation of Goods andServices Tax

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2.Flexibility in labour policy 3.Improving effectiveness of single window clearances Select the correct answerusing the code given below. A) 1 and 2 only B) 2 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: D Which of the following reasons necessitated the intervention of State in the industrial development afterindependence? 1.The private sector lacked the huge capital required for setting up of heavy industries. 2.The private playershad less incentive to invest in industrialization due to the low demand for industrial goods. 3.The need to maximise the profit necessitated State intervention. Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B With reference to the Demographic Dividend, consider the following statements: 1.A country with a high population between15-64 years is considered to have a high demographic dividend. 2.Focus on providing skill development and education will help in effective utilisation of demographic dividend. Which of the statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Whichof thefollowing is/ are not agreements under WTO? 1.Trade Facilitation Agreement 2.Trade Related Intellectual Property Rights 3.Agreement on Subsidies and Countervailing Measures Select the correct answer using the code givenbelow?

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A) 1 and 2 only B) 3 only C) 1, 2 and 3 D) None of the above Correct Answer: D With reference to the 2015 Ministerial Conference of WTO, consider the following statements: 1.It was held in Bali,Indonesia. 2.The member countries reached consensus on Doha Development Agenda. 3.Afghanistan and Liberia accededto the WTO at this conference. Which of the statement/statements given above is/are correct? A) 3 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A Which of the following was/were features of the Mahalanobis growth model? 1.Emphasis on Self-Reliance 2.Indicative Planning 3.Emphasis on heavy goods industries. Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: B Which of the following statements is/are correct regarding Special Safeguard mechanism in WTO? 1.It is a tool that will allowdeveloping countries to raise tariffs temporarily to deal with import surges or price falls. 2.It has been included under theNairobi Package negotiated under the WTO. Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C

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With reference to Quantitative Easing, consider the following statements: 1.Under this policy, the central bank sellsgovernment securities to increase interest rates in the economy. 2.It can lead to an inflation in the economy. Which of thestatements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B For which of the following industries is Industrial Licensing compulsory? 1.Distillation and brewing of alcoholicdrinks. 2.Railway transport 3.Drugs and Pharmaceuticals 4.Atomic energy 5.Electronic Aerospace and Defence Equipment Select the correct answer using the code given below. A) 1, 3 and 5 only B) 1 and 4 only C) 2, 4 and 5 only D) 3, 4 and 4 only Correct Answer: A Which of the following commodities falls under the purview of Essential Commodities Act for price regulation bygovernment? 1.Petroleum products 2.Edible oil 3.Pulses 4.Rice Select the correct answer using the codes given below A) 1 only B) 2 and 4 only C) 1, 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: D With reference to Incremental Capital Output Ratio (ICOR), consider the followingstatements:

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1.It refers to the additionalcapital required to generate additional output in the economy. 2.A higher value of ICOR represents higher efficiency ofinvestment in the economy. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Consider the following statements, regarding India's economic policy before 1991 reforms: 1.Private industries were allowedin every field but license was mandatory. 2.Large business houses required permission from the government to expand theirbusiness operations. 3.Rate of taxation was kept minimum to encourage faster growth. Which of the statements given aboveis/are not correct? A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2, and 3 Correct Answer: C Which of the following can be used to finance Current Account Deficit (CAD)? 1.Sale of reserves of foreign currencies andsecurities 2.Payment of foreign transactions in gold3.External loans from IMF Select the correct answer using the code givenbelow. A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to Depository Receipt (DR), consider the following statements: 1.It is a financial instrument issued by acompany in its domestic market. 2.It is issued for tapping foreign investors who may not be able to participate directly in thedomestic market. 3.It is denominated in a foreign currency. Which of the statements given above is/are correct?

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A) 1 and 3 only B) 2 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: B Which among the following is/are part of the Sustainable Development Goals (SDGs)? 1.End poverty in all its formseverywhere 2.Achieve gender equality 3.Take urgent action to combat climate change and its impacts Select the correctanswer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements with regard to power sector in India: 1.The demand for power is growing at a rate higherthan the GDP growth rate. 2.The power generation from coal is greater than all other sources of power combined together. 3.Non commercial energy consumption is higher than commercial energy consumption. Which of the abovestatements is/are correct? A) 1 and 3 only B) 1 and 2 only C) 3 only D) 1, 2 and 3 Correct Answer: B India has a Free Trade Agreement with which of the following? 1.ASEAN 2.MERCOSUR 3.European Union Select the correctanswer using the code given below. A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3

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Correct Answer: A With reference to the exchange rates, consider the following statements: 1.Under the fixed exchange rate, the central banklinks the exchange rate to another country's currency or to the price of gold. 2.Under the floating exchange rate, the currencyprice is set by the foreign exchange market based on supply and demand. Which of the statements given above is/arecorrect? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to agriculture sector in India, consider the following statements: 1.Among the all sectors in India,agriculture employs maximum workforce. 2.Due to the shift from subsistence to commercial agriculture, the average landholding has increased in India. 3.The dependence of Indian farmers on monsoon has come down since independence. Whichof the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: B Which of the following pairs are correctly matched? Type of goods Example of good 1.Intermediate goods: Salt used by a housewife to cook food. 2.Durable consumer good: Scooter used by a worker to travel from office to

home 3.Capital goods: Boat being used to transport goods across a river. 4.Non-durable consumer Goods Shoes used by a person for jogging. Select the correct answer using the code given below. A) 1, 2 and 3 only B) 1 and 4 only C) 2, 3 and 4 only D) 1, 2, 3 and 4

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Correct Answer: D With reference to the Competition Commission of India, consider the following statements: 1.It aims to promote competitionand ensure freedom of trade in the markets of India. 2.It is a statutory body. 3.It works under the Ministry of Commerce andIndustry. Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: A Which among the following is/are the functions performed by the Securities and Exchange Board of India? 1.Regulatingthe business in stock exchanges 2.Prohibiting insider trading in securities 3.Promoting investors' education and training ofintermediaries of securities markets Select the correct answer using the code given below. A) 1 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following statements is/are correct regarding District Mineral Foundation (DMF)? 1.It is a non-profit organizationworking for the interest and benefit of mining companies and organizations. 2.It has been established by Mines and Minerals(Development and Regulation) Act 2015. Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B

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Consider the following statements: 1.In a free trade agreement, the member countries maintain a common external tariff forexports and imports from non-members. 2.A Customs Union is characterised by free movement of factors of productionamong member countries. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D2 only Consider the following statements: 1.Only the companies having the Navratna status are eligible for obtaining Maharatna status. 2.To be eligible for Mini ratna status a company should have profits continuously for three years. 3.Coal India Limitedand Steel Authority of India Limited are Maharatna companies. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Indian economy has a potential to achieve a growth rate of 8-10 per cent. Which among the following reforms are necessaryto achieve this potential? 1.Addressing the exit problem faced by the companies 2.Investment in health and educationsectors 3.Reforms in agricultural sector. Select the correct answer using the code given below. A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D

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Spending under Corporate Social Responsibility (CSR) in India is applicable to which of the following? 1.A branch of aforeign company operating in India 2.A branch of an Indian company operating overseas 3.Central public sector undertakings. Select the correct answer using the codes given below. A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C Which among the following is/are part of Public Debt incurred by the central government? 1.Internal Debt 2.External Debt 3.Public Account Liabilities Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: A Which among the following correctly defines the term viability gap funding? A) It is a grant focussed on improving the skill set of the population to utilise the demographic dividend. B) It is a grant to help industrial projects to adopt environmental friendly technologies. C) It is a grant to support infrastructure projects that are economically justified but fall short of finances. D) It is a grant focussed on the upliftment of weaker sections of the society. Correct Answer: C Which of the following were the areas of focus under New Economic Policy 1991? 1.Balance of payment 2.Inflation 3.International competitiveness Select the correct answer using the code given below. A) 1 only B) 1 and 2 only

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C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements with reference to Regional Comprehensive Economic Partnership (RCEP)? 1.It is aproposed economic partnership between the 10 ASEAN members and its six FTA partners. 2.India is not of a member ofRCEP. 3.It will cover trade in goods, services, investment and intellectual property. Select the correct answer using the codegiven below. A) 1 only B) 1 and 2 only C) 3 only D) 1 and 3 only Correct Answer: D With reference to Minimum Support Price (MSP), consider the following statements: 1.It is a market intervention by thegovernment to protect farmers against any sharp fall in prices of agricultural produce. 2.It is fixed on the basis ofrecommendations of Cabinet Committee on Economic Affairs. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which of the following is correct regarding a Micro nation? A) It is a small sovereign nation completely existing inside another nation and recognized by WTO. B) It is small islands recognized as sovereign entities by WTO. C) It is a physical or virtual entity with its own rules of business, though not officially recognized as sovereign. D) It is a Special Economic Zone with complete tax exemptions within a nation. Correct Answer: C Which of the following is/are correct regarding Special Drawing Rights (SDR)?

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1.SDR is a hard currency issued byInternational Monetary Fund (IMF). 2.Allocation of SDR is made to member countries in proportion of their quotas in IMF. 3.The value of SDR is based on a basket of currencies of US dollar, euro, yen and renminbi only. Select the correctanswer using the code given below. A) 1 and 3 only B) 2 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: B Which of the following are the consequences of the policy of protectionism? 1.More choice for domestic consumers 2.Highercost of domestic goods 3.Helps domestic industries to compete against foreign players. 4.Reduction in forex reserves ofthe nation. Select the correct answer using the code given below: A) 1 and 3 only B) 1 and 4 only C) 2 and 3 only D) 2 and 4 only Correct Answer: C Fall in the global prices of which of the following goods could result into narrowing of trade deficit for India? 1.Gold 2.Crudeoil 3.Pulses Select the correct answer using the code given below. A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following is/are the recommendations of 14th finance commission? 1. Increasing the share of statesin thecentral divisible tax pool 2. Replacement of FRBM act with Debt Ceiling and Fiscal Responsibility legislation.

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3. Remove thedistinction between special and generalcategory statesfor taxdevolution purposes. Select the correct answer using thecodesgiven below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which ofthe following isthe most likely impact of an increase in interest rates of bonds in India, if there is no restriction onbuying of bonds by foreigners? A) It will result in an appreciation of the rupee. B) It willresultin a depreciation of the rupee. C) Exchange rates will remain unchanged. D) Rupee will depreciate initially and then appreciates. Correct Answer: A With reference to consider the following statements: 1. The production of goods is based on the purchasing capacity of thepeople. 2. The factors of production are owned by both government and the private sector. 3. There is greater producers which results in increased efficiency. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 only C) 2 and 3 only D) None Correct Answer: D Whichamongthe following correctly defines the term dependency ratio? A) It is the ratio of population dependent on the agricultural sector. B) It is the ratio of children below the age of 15 and older persons above 65 years to the working age population. C) It is the ratio of the population below the poverty line. D) It is the number of persons unemployed per thousand persons. Correct Answer: B Which of the following is/are covered under the TRIPS agreement? 1.Copyrights 2.Trademarks

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3.Geographical Indications 4.Patents Select the correct answer using the code given below. A) 2 and 3 only B) 1, 2 and 3 only C) 1, 2, 3 and 4 D) None Correct Answer: C With reference to the Model Shops and Establishments Bill,2016 brought by the Union government, consider the followingstatements: 1.It will cover only shops and establishments employing ten or more workers except manufacturing units. 2.It provides freedom to decide the opening and closing time of the establishment. 3.It provides for women to work during nightshifts. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to Index of eight coreindustries, consider the following statements: 1.It constitutes 90% of the total weightin the Index of Industrial Production. 2.It is released by the Office of Economic Adviser in Department of Industrial Policy and Promotion. 3.Of all the eight core industries, electricity constitutes the maximum weightage in the IIP. Which of thestatements given above is/are correct? A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: B India became the first country to make a contribution to which of the recently established fund by the United Nations UN)? A) United Nations Trust Fund for victims of sexual exploitation and abuse B) United Nations Population Fund C) United Nations Children's fund

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D) United Nations development fund for women Correct Answer: A With reference to Insurance Regulatory and Development Authority IRDA) which of the following statements is not correct? A) It has the powers to issue regulations related to insurers to review their workings for smooth functioning of insurance sector. B) It is a statutory body. C) It protects the interest of the policy holders for whom the insurers are issuing the policies. D) The Insurance Regulatory and Development Authority Fund under it is financed through unused priority sector lending funds of commercial banks. Correct Answer: D Which of the following best describes the term 'bid rigging'? A) It is the loss of competitive bidding due to collusion among bidders. B) It is the disclosure of a corporates' bid by the relevant tender floating authority to another competing firm. C) It is the failure to attract any bids for government tenders floated online. D) It is the setting of lower benchmark rates for initiating a bidding process. Correct Answer: A Consider the following financial activities: 1.Rise in price of Crude Oil 2.Defense expenditure 3.Debt financing 4.Population Growth Which of the above will cause an increase in public expenditure by the government? A) 1, 2 and 3 only B) 2, 3 and 4 only C) 1 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following is responsible for giving a person purchasing power equal to the value printed on the currency notes of higher denomination? A) Parliament B) President

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C) Reserve Bank of India D) Finance Ministry Correct Answer: C Which of the following is/are part of the "Nairobi Package" adopted at the WTO's Tenth Ministerial Conference? 1.Elimination of export subsidies on agricultural products by the developed countries 2.Prevention of evergreening of patents in thepharmaceutical sector 3.Duty-free market access to the marketsof the members of WTO eliminating tariffs on selected ITproducts. Select the correct answer using the code given below. A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following can be categorized as Preferential Trade Agreement PTA)? 1.Partial Scope Agreement 2.Free TradeAgreement 3.Economic Union 4.Customs Union Select the correct answer using the codes given below. A) 1 and 2 only B) 3 and 4 only C) 1, 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following is/are a money market instrument in India? 1.Certificate of deposits 2.Commercial bill 3.GovernmentSecurities Select the correct answer using the code given below. A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A

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Which of the following pairs is/are correctly matched?

Index Publishing agency 1. WPI: Office of Economic Advisor, Ministry of

Commerce and IndustrY 2. CPI-Rural Labour Bureau 3. GDP Central Statistical Deflator Office CSO) Select the correct answerusing the code given below. A) 1 and 2 only B) 1 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: B Consider the following statements regardingCapital Markets: 1.Investment in the capital market necessarily requires a hugefinancial outlay. 2.The main instruments traded in the capital market are short term debt instruments. Which of the statementsgiven above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Which of the following statements are provisions of the Child Labour Prohibition and Regulation) Amendment Act, 2016? 1.Itallows employment of children in the family enterprises and entertainment industry. 2.It has increased the number ofhazardous occupations. 3.It aims to set up a Child and Adolescent Labour Rehabilitation Fund. Select the correct answerusing the codes given below. A) 1 and 2 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: B Which of the following Central Public Sector Enterprises CPSE) have the status of 'Maharatna'?

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1.National Thermal PowerCorporation NTPC) 2.Bharat Petroleum Corporation BPCL) 3.Airports Authority of India Select the correct answer using thecode given below. A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: A The recently launched Saur Sujala Yojana, aims to A) Provide subsidies for development of solar power plants. B) Prepare the youth to become new entrepreneurs in Solar Energy sector. C) Replace streetlights on highways with solar powered streetlight. D) Distributing solar powered irrigation pumps to farmers at a subsidized price. Correct Answer: D With reference to the Green Revolution and Second Green Revolution, consider the following statements: 1.While the first one focused only on food crops; the latter includes whole agricultural sector. 2.While the former was confined mainly toNorth-western India; the latter is focussed on rain-fed eastern part of the country. Which of the statements given above is/arecorrect? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Consider the following statements regarding Hybrid Annuity Model HAM) introduced by government to revive PPP inhighway construction: 1.It is a mix of engineering, procurement and construction EPC) and build-operate-transfer BOT)formats. 2.Under the model, government agencies will be responsible for revenue collection. 3.The government and theprivate companies will share the total projectcost in the ratio of 40:60 respectively. Which of the statements given aboveis/are correct? A) 1 only B) 1 and 2 only

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C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Arrange the following types of Agreements between the countries in ascending order of economic integration: 1.Common Market 2.Economic Union 3.Custom Union Select the correct answer using the code given below. A) 1-3-2 B) 1-2-3 C) 3-2-1 D) 3-1-2 Correct Answer: D Which of the following statements best explains the term Original Equipment Manufacturer OEM), sometimes seen in news? A) It is a company whose products are used as components in the products of another company B) It is a company that manufactures fully finished equipment. C) It is a company that manufactures indigenous defence equipment. D) None of the above Correct Answer: A Consider the following statements regarding Dispute settlement body of WTO: 1.It has the power to authorize retaliation witheconomic sanctions when a country does not comply with a ruling. 2.Its decision is final and no appeal is allowed againstit. Which of the above statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which of the following countries/union are part of negotiations for Trans-Atlantic Trade And Investment Partnership TTIP Agreement? 1.USA 2.European Union

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3.South Africa 4.Brazil Select the correct answer using the code given below. A) 1 and 2 only B) 3 and 4 only C) 1, 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: A Consider the following statements about Telecom Regulatory Authority of India TRAI): 1.Its objective is to regulate telecomservices, including fixation and revision of tariffs for telecom services. 2.It is vested with both adjudicatory and regulatorypowers. 3.It works under the Department of Telecommunication. Which of the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1 and 3 only Correct Answer: A The average poverty gap in the population as a proportion of the poverty line is known as: A) Sen Index B) Poverty Gap Index C) Squared Poverty Gap D) Inequality Index Correct Answer: B Consider the following statements with regard to Ultra Mega Power Projects UMPP) in India: 1.All the envisaged andlaunched UMPPs are coal based power plants 2.The use of super-critical technology provides for higher fuel efficiency andlower greenhouse gas emissions 3.Power Finance Corporation PFC) is the Nodal implementing Agency for UMPPs. Which ofthe statements given above is/are correct? A) 1 only B) 1 and 2 only

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C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements regarding power consumption in India: 1.Consumption of electricity in agricultural sector isthe highest compared to other sectors. 2.All the thermal power stations in India are running at full capacity. 3.Transmission and Distribution T&D) Losses in India are negligible when compared to the power production. Which of the statement givenabove is/are correct? A) 1 only B) 1 and 3 only C) 2 and 3 only D) None of the above Correct Answer: D Which among the following is/are the advantages of setting up Agri- export zones? 1.Strengthening of backwardlinkages 2.Value addition to basic agricultural produce 3.Promote trade-related research and development Select thecorrect answer using the code given below. A) 1 and 2 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following functions is/are performed by the Food Safety and Standards Authority of India FSSAI)? 1.Guidelinesfor accreditation of certification bodies or Laboratories. 2.Framing of regulations and standards in relation to articles offood. 3.Provide training programmes for persons who are involved in food businesses. Select the correct answer using thecode given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D

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Doha round of WTO covers negotiations on which of the following? 1.Agriculture 2.Services 3.Non-Agricultural MarketAccess 4.Trade Facilitation Select the correct answer using the code given below. A) 1 and 3 only B) 1 and 4 only C) 2, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Consider the following statements with respect to pulse procurement in India: 1.Minimum Support Price MSP) for pulses isprovided by Food Corporation of India FCI). 2.Pulse procurement process is financed through Price stabilizationfund. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Which of the following is correct regarding the Market Intervention Scheme? A) It is a price support mechanism for procurement of perishable and horticultural commodities in the event of a fall in market prices. B) It is a protectionist tariff that the government imposes on foreign imports to protect domestic sector. C) It is a protectionist mechanism of the government to prevent monopoly of MNCs in India. D) It is a mechanism to avoid sudden crashing of domestic stock market. Correct Answer: A Consider the following statements about Atal Mission for Rejuvenation and UrbanTransformation AMRUT): 1.It aims todevelop 100 cities all over the country making them citizen friendly and sustainable. 2.It makes States equal partners inplanning and implementation of the projects.

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3.The Ministry of Housing and Urban Poverty Alleviation is the nodal agency forthe mission. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: C Consider the following statements with regard to National Mission on Sustainable Agriculture NMSA): 1.It is one of themissions under National Action Plan on Climate Change NAPCC). 2.It aims to leverage resources from other missions like MGNREGS. 3.It aims to make agriculture more sustainable by promoting location specific Integrated/Composite FarmingSystems. Which of the statements given above is/are correct? A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D The term "miracle seeds" is associated with which of the following? A) Green Revolution B) Aquaponics C) Permaculture D) Bio-fortified crops Correct Answer: A With reference to the World Intellectual Property Organization WIPO), consider the following statements: 1.It is a specializedagency of the United Nations for promotion and protection of intellectual property rights. 2.It prescribe mandatory measuresto be followed by its member countries Which of the above statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2

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Correct Answer: A The National Policy on Electronics, 2012, aims to: 1.Develop Electronics sector through Electronic Manufacturing ClustersScheme. 2.Give preference to the domestically manufactured goods in government procurement. 3.Support start-ups inelectronics sector. Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements regarding the policy of Import Substitution: 1.It aims at protecting domestic industries fromforeign competition. 2.Quotas and tariffs are tools for import substitution. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to Real Estate Investment Trusts REITs) in India, consider the following statements: 1.The funds raisedthrough REITs will be invested in income-generating real estate assets. 2.REITs units can be traded on stockexchange. 3.Foreign investments in REITs are prohibited. Which of the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Which of the following best describes 'deemed exports'? A) Those transactions in which the goods supplied do not leave the country. B) Those transactions which take place in the domestic currency of the importer.

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C) Exporting of products which do not require approval of regulatory authorities. D) Exporting of products which are funded by an international funding agency. Correct Answer: A Consider the following statements: 1.The monitorable targets of development were set for the first time during the Tenth Five Year Plan. 2.'Governance' was recognised as a factor of development for the first time duringthe Twelfth Five YearPlan. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 and 2 Correct Answer: A After the initial emphasis on hydro-electric source, the power generation in India was gradually shifted towards thermalpower. Which of the following are the reasons behind this? 1.Thermal power is less polluting. 2.Hydro electric projects need huge investments. 3.Presence of large reserves of coal. 4.Lower gestation period of hydroelectric projects than of thermalpower projects. Select the correct answer using the codes given below. A) 1 and 3 only B) 2, 3 and 4 only C) 1, 2 and 4 only D) 2 and 3 only Correct Answer: D With reference to economy, what does the term de minimis level refer to? A) It is the minimum level of special drawing rights SDRs) that has to be maintained by IMF memebers. B) It is the minimal amounts of domestic support that are allowed even though they distort trade. C) It is the minimum level of capital required for a foreign bank to operate in India. D) It is the minimum amount of trade required for a country to get status of Most Favoured Nation MFN) Correct Answer: B

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'ARYA' scheme recently launched by the Government of India is aimed at: A) Capacity building of business correspondent in rural areas for financial inclusion. B) Empowerment of youth in rural areas to take up agriculture and allied services. C) Facilitating a pan-India electronic trading portal for small scale industries. D) Providing a digital mobile mini lab to provide soil testing service. Correct Answer: B. WTO Agreement on Agriculture provisions and rules relate to: 1.Removing tariff and non-tariff barriers. 2.Subsidies provided for export of agri-products. 3.Price support to farmers . Select the correct answer using code given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following proposes to bring out‘ease of living’ index that will rank cities globally? A) World Bank B) World Economic Forum C) United Nations Environmental Programme UNEP) D) United Nations Development Programme UNDP) Correct Answer: A For producing a patented product or processunder the Compulsory Licensing, permission is required from 1.the government 2.the patent holder Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A With reference to Pradhan Mantri Gram Sadak Yojana, which of the following statement is not correct?

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A) It aims to achieve complete rural connectivity through all-weather roads by 2019. B) 50% of the Cess on High Speed Diesel HSD) is earmarked for this Programme. C) Its works are executed by the State Agencies. D) It comes under Ministry of Road Transport and Highways. Correct Answer: D Which of the following conventions have been ratified by India? 1.UN Convention on the Rights of the Child 2.The Conventionon the Elimination of all Forms of Discrimination Against Women CEDAW) 3.UN Convention on the Rights of Persons withDisabilities UNCRPD) Select the correct answer using the code given below. A) 1 and 3 only B) 2 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: D The 'Pharma Jan Samadhan' Scheme launched by Ministry of Chemicals and Fertilizers is: A) a scheme to incentivize private pharmaceutical companies to manufacture drugs under Make in India programme. B) an effort to store drugs by the government to provide for their availability during natural calamities. C) a web enabled system for redressal of consumers‟ grievances relating to pricing and availability of medicines. D) an effort to provide easy access of Fixed dose combinations of therapeutic advantage to public through primary health centres. Correct Answer: C With regard to Pravasi Kaushal Vikas Yojana, consider the following statements: 1.The scheme aims for skill training of Indian labour returning back from gulf countries. 2.It will be jointly implemented by the Ministry of External Affairs and theMinistry of Skill Development and Entrepreneurship. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2

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D) Neither 1 nor 2 Correct Answer: B Which of the following statements are correct with regard to Housing for ALL Rural) scheme? 1.It aims to provideenvironmentally safe and secure pucca house to rural households. 2.Only BPL population are eligible for the scheme. 3.Thedata on beneficiaries will be validated through the Gram Sabha. Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Which of the following is/are the components of Digital India programme? 1.To provide universal access to mobileconnectivity. 2.To improve electronics manufacturing in India. 3.To provide for electronic Delivery of Services. Select thecorrect answer using the code given below. A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following functions is/are performed by Central Drugs Standard Control Organization CDSCO) ofIndia? 1.Regulating import of Drugs 2.Approval of new drugs 3.Approval of clinical trials Select the correct answer using thecode given below. A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D

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Which of the following statements regarding National Commission on Population NCP)is/are correct? 1.It is mandated tomonitor and give directions for the implementation of the National Population Policy, 2000. 2.The Prime Minister Welfare isthe chairperson of NCP. Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 and 2 Correct Answer: C With reference to the National Mission for Empowerment of Women NMEW), consider the following statements: 1.It is anumbrella mission with a mandate to strengthen inter-sectoral convergence regarding women‟s welfare programmes. 2.It aimsto reserve 33% of seats in the Lok Sabha and all state legislative assemblies for women. 3.It establishes Poorna Shakti Kendras PSK) as focal point of action to provideservices at grassroot level. Which of the statements given above is/arecorrect? A) 1 and 2 only B) 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C UN Refugee Convention 1951) safeguards the rights of people fleeing persecution due to which of the followingreasons? 1.Race 2.Religious beliefs 3.War 4.Climate change 5.Variant Political ideology Select the correct answer using the code given below. A) 1, 2 and 3 only B) 4 and 5 only C) 1, 2, 3 and 5 only D) 1, 2, 3, 4 and 5

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Correct Answer: C With regard to Janani Shishu Suraksha Yojana, consider the following statements: 1.It provides for absolutely free and noexpense delivery to women in both rural and urban areas. 2.It provides for free assistance by ASHA workers for delivery athome. 3.It is implemented by Ministry of Women and Child development. Which of the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A With regard to 'Vittiya Saksharta Abhiyan', consider the following statements: 1.Its purpose is to create awareness aboutcashless modes of transactions. 2.It actively engage students of Higher Education Institutions. 3.It is implemented by Ministryof Finance Which of the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B With reference to the 'Annual Status of Education Report ASER)', consider the following statements: 1.It is released by theMinistry of Human Resource Development. 2.It is a household survey. 3.It provides estimates of children’s schooling statusand their ability to read simple text and do basic arithmetic. Which of the statements given above is/are correct? A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: B Consider the following statements regarding the recently launched Swasthya Raksha Program:

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1.It primarily aims atincreasing health insurance percentage in rural areas. 2.It seeks to provide modern health care facilities in villages. 3.It will beimplemented in collaboration with World Health Organization. Which of the statements given above are not correct? A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Government of India launched Setu Bharatam project to: A) Make all national highways free from railway level crossing to ensure road safety. B) Make brigdes on rivers which are flowing through border area. C) Connect all the National waterways either through railways or roadways. D) Protect and conserve Ram setu (Adam's Bridge) that connects India and Sri Lanka. Correct Answer: A Which of the following statements regarding Saakshar Bharat initiative is/are correct? 1.Its primary objective is to impartfunctional literacy to adults in the age group of 15 years and beyond. 2.It is being implemented in rural areas of all thedistricts across India. Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 and 2 Correct Answer: A Which of the following is the objective of 'Rashtriya MahilaKosh'? A) Meeting credit needs of poor woman. B) Support NGOs ensuring safety of women in India. C) Education for girl and women for social equality. D) Providing infrastructure facilities for primary health care centres. Correct Answer: A Which among the following are the initiatives with respect to skill development for minorities in India?

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1.NaiManzil 2.USTTAD 3.Nai Roshni Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: D 'NIKSHAY' an initiative taken by Ministry of Health and Family Welfare is web based application for monitoring and tracking A) Malnutrition in children B) Patients of AIDS C) dengue-affected areas D) TB patients Correct Answer: D Which of the following statements is correct about National Commission for Safai Karamcharis (NCSK)? A) It monitors and evaluate the implementation of the programmes and schemes relating to the social and economic rehabilitation of safai karamcharis. B) It tenders advice for effective implementation of Prohibition of Employment as Manual Scavengers and their Rehabilitation Act to the Centre and State Governments. C) Presently NCSK is working as a non-statutory body. D) All of the above statements are correct. Correct Answer: D With reference to Soil Health Card Scheme, consider the following Statements: 1.It is field-specific detailed report of soilfertility status . 2.It aims to provide farm insurance based on soil health. 3.Every soil health card will be renewed everyyear. Which of the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A

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Which of the following indicators are used in measuring gender inequalities in the Gender Inequality Index GII)? 1.Total Fertility Rate 2.Female and male share of parliamentary seats 3.Female and male labour force participation rate Selectthe correct answer using the code given below: A) 1 and 2 only B) 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C Which among the following organizations brings out the „Inclusive Development Index‟? A) WEF B) World Bank C) UNDP D) IMF Correct Answer: A Which of the following is/are objectives of Rashtriya Gram Swaraj Abhiyan? 1.Create and strengthen local self-government inareas where Panchayats do not exist. 2.Enhance capacities and effectiveness of Panchayats and the GramSabhas. 3.Implementation of Panchayats Extension to Scheduled Areas) or PESA act. Select the correct answer using codegiven below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following statements is/are correct with regard to Pradhan Mantri Khanij Kshetra Kalyan Yojana? 1.It aims toboost the exploration and production of minerals in mining areas. 2.It uses the funds generated by District MineralFoundations DMFs). Select the correct answer using the code given below. A) 1 only B) 2 only

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C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Consider the following statements regarding the merits of SDGs over MDGs: 1.MDGs focused primarily on the social agendawhile SDGs are broader in scope. 2.SDGs apply to all countries while MDGs targeted developing countries only. Which of thestatements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Consider the following statement regarding HRIDAY: 1.Its main objective is to preserve the heritage cities and facilitateinclusive heritage linked urban development. 2.Selection of sites for development would be done in collaboration with UNESCO. 3.Ministry of Urban Development is its nodal implementing agency. Which of the statements given above is/arecorrect? A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C Recently, the Government of India constituted a committee under Justice BN Sri krishna with which of the followingobjectives? A) To oversee the conservation of Western Ghats. B) To review institutionalization of Arbitration Mechanism in India. C) To resolve the Cauvery water dispute. D) To suggest reforms to the Good and Services Tax regime. Correct Answer: B With reference to Multidimensional Poverty Index MPI) of UNDP, consider the following statements: 1.The index identifiesdeprivations across the same three dimensions as the Human Development Index HDI).

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2.It declares people sufferingdeprivations in more than one third of the indicators as multidimensionally poor. Which of the statements given above is/arecorrect? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which of the following is the main objective of Rashtriya Avishkar Abhiyan RAA)? A) To promote Research and Development in higher educational institutions. B) To inculcate love for science and mathematics among school children. C) To increase the number of women scientists in the country. D) To promote scientific temper among all people. Correct Answer: B With reference to the SWAYAM programme, consider the following statements: 1.It is an online platform to provide massiveopen online courses MOOCs). 2.It has been developed by the Ministry of Human Resource Development MHRD) Which ofthe statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to recently formed District Development Coordination and Monitoring Committee Disha), consider thefollowing statements: 1.The committees would monitor the implementation of schemes and programmes of the Central government. 2.The Chairperson of the committee should be a Member of Parliament Lok Sabha) elected from thedistrict. 3.All the members of the State Legislative Assembly elected from the district would be members of the committee. Which of the statements given above is/are correct? A) 1 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3

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Correct Answer: D Consider the following about the Directorate of Enforcement. 1. It is housed under the Ministry of Corporate Affairs. 2. Itenforces the Prevention of Money Laundering Act. 3. It keeps track of foreign exchange movement in and out of India. Selectthe correct answer using the codes below. A) 1 and 2 only B) 2 and 3 only C) 1 only D) 2 only Correct Answer: B The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.Consider the following about Special Drawing Rights (SDR). 1. SDRs cannot be exchanged for freely usable currencies. 2.Value of a SDR is fixed on an annual basis and revised on the discretion of IMF. Which of the above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) None Correct Answer: D The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the globalfinancial system. Consider the following about it. 1. It was established by G-20 as the successor to the Financial Stability Forum (FSF). 2. It has been made a member organ of the International Monetary and Financial Committee (IMFC). Which ofthe above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) None Correct Answer: A

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“Fiscal Monitor” report was published in April 2016 by which of these organizations? A) World Bank B) World Economic Forum C) International Monetary Fund D) Reserve Bank of India Correct Answer: C Which of the following are considered to be factors of production? 1. Land 2.Labour 3.RobustGovernance 4.Capital 5.Entrepreneurship Select the correct answer using the code given below: A) 2 and 3 only B) 1 and 2 only C) 1, 2, 4 and 5 only D) 1, 2, 3, 4 and 5 Correct Answer: C Which of the following pair(s) is/are correctly matched? 1.Inferior Goods: As the consumer income rises, the demand of theproduct decreases. 2.Giffen Goods: As the price of good increases, the demand for it increases. 3.Normal Goods: As theconsumer income rises, the demand of the product rises. Select the correct answer using the code given below. A) 3 only B) 1 only C) 2 only D) 1, 2 and 3 Correct Answer: D What are the indicators used for calculating the modified Human Development Index (HDI), 2015? 1.Life expectancy atBirth 2.Expected years of schooling for a school age child 3.Adult Literacy rate4.Gross National Income (GNI) perCapita Select the correct answer using the code given below. A) 1, 2 and 4 only

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B) 1, 3 and 4 only C) 1 and 2 only D) 1, 2, 3 and 4 Correct Answer: A What are the advantage of economic indexes being calculated on base-year prices? 1.It eliminates the effects of inflation 2.Itallows for comparison between current performance and historical performance. 3.It is used for comparing the measure ofbusiness activity or economic index. Which of the statement(s) given above is/are correct? A) 1 and 3 only B) 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Match the following sets of pairs. List 1 List 2 A. Rastriya MahilaKosh 1. Empowerment of women B. MahilaSamridhhi Yojana 2. Education for women’s equality C. Indira Mahila Yojana 3. Promotion of saving among rural women D. Mahila Samakhya Programme 4. Meeting credit needs ofthepoor women Select the correct answer using the codes given below. A) A-3, B-2, C-1, D-4 B) A-1, B-3, C-4, D-2 C) A-4, B-3, C-1, D-2 D) A-4, B-1, C-2, D-3 Correct Answer: C Which of the following were the features of the planning in the Nehruvian era? 1.Active role of state in the economicdevelopment of the country. 2.This period witnessed an export-oriented economy where the major thrust was given on exportpromotion for promoting economic growth. 3.There was emphasis on the development of heavy industries in thisperiod. Which of the statements given above is/are correct? A) 1 and 2 only B) 2 only C) 1 and 3 only

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D) 1, 2 and 3 Correct Answer: C With reference to the government scheme PAHAL, consider the following statements: 1.It aims at direct benefit transfer forfood subsidy to consumers. 2.Aadhar card is not mandatory to become a beneficiary of the scheme. Select the correctanswer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B With reference to the Pradhan Mantri FasalBima Yojana, consider the following statements: 1.It replaces the NationalAgricultural Insurance Scheme and the Modified(National Agricultural Insurance scheme) NAIS. 2.Post- harvest lossesexcept risks of localized calamities are covered under this scheme. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A With reference to Coal imports in India, consider the following statements: 1.Most of the power plants in India are coal-basedand they are not able to get sufficient supply of coal within the country. 2.Steel companies need large quantity of coking coalwhich has to be imported. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C 'Kimberly Process Certificate Scheme (KPCS)', recently in the news is associated with

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A) Diamond market B) Coal mining C) Software development D) Technology transfer Correct Answer: A Which of the following policy/ policies can be used to achieve protectionist goals? 1.Tariffs 2.Anti-dumping legislation 3.Import subsidies 4.Exchange rate manipulation Select the correct answer using the code given below. A) 1 only B) 2 and 3 only C) 1, 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: C Consider the following statements regarding the disinvestment in public sectors in India: 1.It is a tool of public sectorreform. 2.It is used to raise money for the government budget. 3.The government deposits the proceeds from disinvestmentdirectly into the Consolidated Fund of India. Select the correct answer by using the codes given below: A) 1 and 2 only B) 2 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: A The Agreement on Agriculture (AoA) is an international treaty within the World Trade Organization. With reference to this,consider the following statements: 1.The Blue Box subsidy includes measures to support prices like subsidies directly related to production quantities, export subsidies etc. 2.The Amber box contains aid to livestock or land, not linked to prices but tofixed figures for surface and yield. 3.The Green box subsidy includes Research and training services provided to farmers by state.

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Which of the above statement(s) is/are correct? A) 2 and 3 only B) 3 only C) 1 and 2 only D) 1 only Correct Answer: B With reference to the concept of "cartelization", consider the following statements: 1.It promotes competition. 2.A cartel hasless command over an industry than a monopoly. 3.Cartels are consideredillegal in India. Which of the statement(s) givenabove is/are correct? A) 3 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C WTO has its own institutional framework. Do you agree? A) No, the WTO depends on the frameworks of national governments. B) No, the WTO provides institutional arrangements but only on ad hoc basis. C) Yes, the WTO provides a certain institutional framework which changes depending on the nature of free trade agreements. D) Yes, the WTO provides a common institutional framework for implementation of free trade agreements. Correct Answer: D Which among the followings is/are developmental expenditure? 1.Irrigation projects 2.Defence procurements 3.Debt serviceliabilities 4.Grant-in-aid Select the correct answer using the codes given below. A) 3 only B) 1, 3 and 4 only C) 1 and 4 only D) 1, 2, 3 and 4 Correct Answer: C A tax imposed on diesel vehicles in India could be called

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A) Luxury Tax B) Carbon Tax C) Fringe Benefit Tax D) Anti Congestion tax Correct Answer: B 'Impossible trinity' in International economics is concerned with managing which of the following objectives? A) Flexible exchange rate, current account convertibility and independent monetary policy B) Fixed exchange rate, full currency convertibility and independent monetary policy C) Flexible exchange rate, capital account convertibility and independent monetary policy D) Flexible exchange rate, currency convertibility and independent monetary policy Correct Answer: B Which of the following is correct about Global Depository Receipts? 1.It is an instrument to raise money from abroad. 2.GDR is a subset of Euro Issues. 3.These receipts are in the form of foreign currency. Select the correct statements using the codesgiven below: A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Reserve requirements are designed to satisfy which of the following needs? 1.Providing loans to the government 2.Safety ofbanking operations 3.Regulation of liquidity Select the correct answer using the codes given below: A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D

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Who among the following falls under the ambit of the Foreign Contribution Regulations Act (FCRA)? 1.Citizens of Indiaoutside India. 2.Overseas branches of companies registered or incorporated in India. 3.Companies andtheir branchesregistered and working in India. Select the correct answer using the code given below. A) 2 only B) 2 and 3 only C) 1 only D) 1, 2 and 3 Correct Answer: D With reference to the affairs of World Trade Organization, the Most Favoured Nation (MFN) status implies: 1.Granting ahigher status to one country with respect to the other trading partners. 2.Lowering the custom duties for that country as aspecial privilege. 3.Non-discriminatory treatment by one country towards the other country with regard to trade in goods andservices. Select the correct answer using the codes given below. A) 1 only B) 2 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: C For which of the following sector(s) is the Service Price Index being prepared on experimentalbasis? 1.Railways 2.Banking 3.Telecom 4.Postal Select the correct answer using the codes given below: A) 1, 2 and 3 only B) 2 and 3 only C) 1, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following is/are example(s) of Foreign Direct Investment? 1. Portfolio investment

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2.Production and manufacturing a product by setting up a plant, industrial unit or a project. 3.Establishment of subsidiaries of a foreigncompany in India. 4.Providing some services like banking, insurance, shipping etc for which the foreign company sets up aservice network in the country. Select the correct answer using the codes given below. A) 1, 2 and 4 only B) 1 and 2 only C) 2, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: C The term "bullion" is used to refer 1.Gold 2.Silver 3.Platinum Select the correct answer using the code given below A) 1 only B) 2 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: D Which of the following if implemented would improve ease of doing business in India 1. Providing subsidies toproducers/manufactures 2.Online Registration Systems 3.Easy insolvency procedures 4.Progressive taxation Select thecorrect statement/s using the codes given below A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: C An investor who provides financial backing to entrepreneurs for starting their business is called a/an A) Venture Capitalist B) Institutional Investor

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C) Strategic Investor D) Angel Investor Correct Answer: D With reference to the Safeguard Duty imposed by the Government of India, consider the following statements: 1.It givesdomestic producers a period of grace to become more competitive with regard to imports. 2.It can be imposed to counter anypotential threat getting hared due to sudden cheap surge in imports. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which of the following are ‘non-debt capital receipt’? 1.Recoveries of loans and advances 2.Disinvestments of government’sequity holdings 3.Market loans and External loans 4.Small Savings Schemes5.Government Provident Funds Select thecorrect answer using the code given below. A) 1 and 2 only B) 1, 2 and 4 only C) 3, 4 and 5 only D) 1, 2, 3, 4 and 5 Correct Answer: A Under Balance of payment, the Capital account consists 1.All transfer payments 2.Government Grants and Aids 3.All international purchases Select the correct answer using the code given below. A) 1 and 2 only B) 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B

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Consider the following statements regarding the ‘Quantitative Easing’. 1.It is an unconventional form of monetary easingused to stimulate an economy. 2.This method can be used in place of the interest rate reduction. 3.A central bank purchasesgovernment securities or other securities from the market in order to lower interest rates and increase the moneysupply. Which of the above statement(s) is/are correct? A) 1 and 3 only B) 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A Which of the following are Non-tariff barrier(s)? 1. Quotas 2.Embargoes 3.Sanctions 4.Levies Select the correct answer usingthe code given below. A) 1 and 2 only B) 3 only C) 1 and 3 only D) 1, 2, 3 and 4 Correct Answer: D Who among the following brings out the Index of Industrial Production (IIP) in India? A) Ministry of Commerce and Industry (India) B) The Department of Economic Affairs C) Central Statistical Office D) Department of Industrial Policy & Promotion Correct Answer: C What is a ‘final good’? A) A final good is one that will not pass through any more stages of production or transformation at the hands of producers orconsumers. B) A final good is one that has passed out of the active economic flow. C) A final good is one that will not pass through any more stages of production or transformation at the hands of consumers. D) A final good is one that is necessarily consumed in the form that it was sold in. Correct Answer: B

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India’s ‘openness’ with respect to the global economy is measured as A) Ratio of trade in goods and services to GDP. B) Ratio of exports in goods and services to NNP at factor cost. C) Ratio of trade in goods, services and assets to GDP. D) Ratio of trade in goods, services and assets to NNP at factor cost. Correct Answer: A Which of the following challenges in the global economy can negatively affect the growth in emerging economies likeIndia? 1.Increase in interest rates by the U.S. Federal reserve 2.Uncertainty in Prices of commodities such as crudeoil 3.Retreat from globalisation and increasing protectionism. Select the correct answer using the codes given below. A) 1 and 2 only B) 2 and 3 only C) 1 only D) 1, 2 and 3 Correct Answer: D With reference to the Universal Service Obligation Fund (USOF), consider the following statements: 1.It is used to extend basictelephony services to the rural areas. 2.This fund is raised from the telecom companies under the Corporate SocialResponsibility (CSR) scheme. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Consider the following statements regarding the Intellectual Property Rights (IPR). 1.Under the TRIPS agreement onlyprocess patents must be awarded for Pharmaceuticals. 2.Copyright protects expressions and not the ideas. 3.A trademark isthe legal version of a brand. Which of the above statements is/are correct? A) 1 and 2 only B) 1 and 3 only

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C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C A rise in the interest rates in a country will lead to 1. Appreciation in the currency 2.Inflow of foreign funds into theCountry 3.Depreciation in the currency 4.Outflow of foreign funds from the country Select the correct answer using the codesgiven below. A) 1 and 2 only B) 3 and 4 only C) 1 and 4 only D) 2 and 3 only Correct Answer: A With rise in federal interest rate in USA what would be the possible effect on the Indian Economy? 1.Balance of Payment willimprove. 2.Investment in India will decrease. 3.Value of Rupee will depreciate. Select the correct answer using the code givenbelow: A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C An increase in incomes in an economy will lead to which of the following 1.Depreciation of the currency 2.Appreciation of thecurrency 3.Increase in imports4.Increase in exports Select the correct answer using the codes given below. A) 1 and 4 only B) 1 and 3 only C) 2 and 4 only D) 2 and 3 only Correct Answer: B

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Which of the following is/are the reason(s) for the adoption of Industrial Policy by various countries all over the worldincluding India? 1.Great depression of 1920s 2.Russian Revolution 3.Decolonization Select the correct answer using the codesgiven below: A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements regarding the Special Drawing Rights (SDRs) 1.The SDR is an international reserve asset,created by the IMF 2.IMF allocate SDRs to member countries in proportion to their IMF quotas only 3.SDR as a unit ofaccount are concerned solely with the IMF Which of the following statements is/are correct? A) 1 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A Which of the following schemes would help in human capital formation? 1.Rashtriya SwasthyaBima Yojana (RSBY) 2.Janani Suraksha Yojana 3.Swachh Bharat Abhiyan 4.Mid-day meal scheme 5.HRIDAY Select the correct answer using the codegiven below A) 2, 3 and 5 only B) 1, 2 and 3 only C) 1, 2, 3 and 4 only D) 1, 2, 3, 4 and 5 Correct Answer: C Which of the following act allows states to restrict movement of agri-products across state boundaries? A) Agricultural Produce Marketing Committee Act (APMC) B) Agricultural Produce (Grading and Marking) Act, 1937

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C) Food Products Order, 1956 and Meat and Food Products Order, 1973 D) Essential commodities Act (ECA) 1955 Correct Answer: D India- United Arab Emirates (UAE) strategic oil reserves deal, recently in news, allows A) UAE to fill half of underground crude oil storage facility in India B) India to fill half of underground crude oil storage facility in UAE C) Gulf OPEC Country to fill half of underground crude oil storage facility in India D) Gulf OPEC Country to fill half of underground crude oil storage facility in South-Asia Correct Answer: C Consider the following statements regarding the Regional Comprehensive Economic Partnership (RCEP) agreement: 1.RCEPis a proposed Free Trade Agreement (FTA) which includes 10 ASEAN nations and its 6 FTA partners. 2.RCEP is only mega-regional FTA of which India is a part. Which of the above statements are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Participatory Note (P-Note) refers to A) Offshore Derivative Instrument B) Onshore/Offshore Derivative Instrument C) Offshore Share Instrument D) Onshore/Offshore Share Instrument Correct Answer: A Expenses of an Indian citizen on a foreign trip to USA will be accounted in Indian Economy as A) Foreign Direct Investment B) Foreign Portfolio Investment C) Import D) Export Correct Answer: C

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Inclusive growth can be essentially fostered by the means of 1.Reservations 2.Mid-Day meal scheme 3.Grant of bankinglicenses by RBI 4. Formalising labour reforms Select the correct answer using the code given below A) 1 and 2 only B) 1, 2 and 3 only C) 1, 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Consider the differences between National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS)payment systems: 1.NEFT can be used only by individuals whereas RTGS can be used by individuals as well as banks, fortransferring funds. 2.The minimum fund that can be transferred using NEFT is Rs. 100 whereas the minimum fund thatcan be transferred using RTGS is Rs. 2 lakh. 3.Settlement of NEFT funds occurs immediately while settlement of RTGS occurs in hourly batches. Which of the above statements are correct? A) 1 and 3 B) Only 2 C) Only 3 D) None of the above. Correct Answer: D With reference to the term ‘Universal Basic Income’ (UBI), recently in the news, consider the following statements: 1.It is aperiodic cash payment unconditionally delivered to all individual below poverty line. 2.India is the first country to conduct apilot project on it. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D

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Consider the following statements 1. Access imposed by the central government is a tax on tax, for specific purpose and ismandatorily shared with states. 2. A surcharge is an additional charge on a tax, without specific purpose and need not be shared with the states. Which of the above statement(s) is/are true? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D With reference to the Goods and Services Tax (GST), consider the following statements: 1.A non-manufacturing state withhigh consumption will be benefited under the GST. 2.Implementation of GST will increase the competitiveness of Indiangoods and services in the international market. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Consider the following statements 1.The ‘outstanding issues’ between the developing and developed countries, with respect to WTO are related with the Uruguay round of talks. 2.The ‘‘outstanding issues’ revolve around mainly three issues–agriculture, industrial market and intellectual property. Which of the given statements are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Which among the following is/are the dimension(s) considered under Basic Human Needs for calculation of Social ProgressIndex (SPI)? 1.Nutrition

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2.Medical care 3.Water 4.Personal Safety Select the correct answer using codes given below. A) 1 and 2 only B) 2 and 3 only C) 1, 2, 3 and 4 D) 1 only Correct Answer: C Which phenomenon negatively impact India manufacturers? A) Inverted Duty Structure B) Higher Anti-Dumping Duties C) Higher Countervailing Duties D) Free Trade Agreements Correct Answer: A Which of the following African economic organizations has also served as a peace keeping force by assisting with their military forces during political crisis? A) Arab Maghreb Union B) East African Community C) African Economic Community D) Economic Community of West African States (ECOWAS) Correct Answer: D In the 'Index of Eight Core Industries', which one of the following is given the highest weight in the Index of IndustrialProduction (IIP)? A) Refinery Products B) Crude Oil C) Electricity D) Steel Correct Answer: A Consider the following statements regarding a Special Economic Zone (SEZ): 1.It is deemed to be a foreign territory for thepurposes of trade operations and duties and tariffs. 2.A foreign agency cannot set up an SEZ in the host country. Which ofthe statements given above is/are correct? A) 1 only B) 2 only

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C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A With reference to the Trade Infrastructure for Export Scheme, consider the following statements: 1.It aims to develop exportlinked infrastructure to promote outbound shipments. 2.It will be implemented in coastal states only. 3.SEZ Authorities areeligible for financial support under this scheme. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: B Which of the following factors have contributed to the presence and development of a large informal sector in the Indianeconomy? 1.Slow pace of labour reforms 2.Low levels of skill development 3.Low levels of financial inclusion Select thecorrect answer using the code given below. A) 1 and 3 only B) 2 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: D Which among the following skill development initiatives have been launched by the Ministry of Tourism? 1.Hunar se RozgarTak 2.Nai Manzil 3.Hamari Dharohar Select the correct answer using the code given below. A) 1 and 2 only B) 3 only C) 1 only D) None Correct Answer: C

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Which of the following disadvantages is/are associated with granting subsidies? 1.They encourage inefficiency and wastefuluse of resources. 2.They help indicate the market supply of a good. 3.They enhance inequality between the rich andpoor. Select the correct answer using the code given below. A) 1 only B) 1 and 3 only C) 3 only D) 2 and 3 only Correct Answer: A Consider the following statements about Coastal Berth Scheme: 1.It aims to provide financial support to state governments for creation of infrastructure for movement of cargo. 2.It is a scheme under Sagarmala Programme. Which of the statementsgiven above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Vijay Kelkar committee is related to: A) reforms in Public Private Partnershipmodel of infrastructural development. B) rationalization of funding in centrallysponsored schemes C) assessment of impact of demonetization. D) reducing air pollution and improving air quality. Correct Answer: A Which of the following can lead to more patents getting filed in India? 1. Establishment of world class universities 2.Cutting bureaucratic red-tape 3.Fostering an entrepreneurial culture Select the correct answer using the code given below. a) 2 only b)1 and 2 only c)1 and 3 only d)1, 2 and Correct Answer: D With reference to NITI Aayog, consider the following statements.

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1.Team India Hub of NITI Aayog leads the engagement ofstates with the Central government. 2.NITI Aayog has been nominated as the nodal organization for the implementation of the SDGs. 3.National Institute of Labour Economics Research and Development is an Autonomous Institute under NITIAayog. Which of the statements given above are correct? A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following is/are the objectives of the Open Market Sale Scheme? 1.To moderate the open market prices of foodgrains. 2.To offload the excess stocks in the central pool. 3.To save the food grains from deteriorating in quality. Select thecorrect answer using the code given below. A) 1 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D The Banking Regulation (Amendment) Act, 2017 aims to A) provide a procedure to set inflation targets for RBI. B) bring non-banking financial institutions under regulatory supervision of RBI. C) enable RBI to deal with stressed assets quickly. D) provide a mechanism for mergers and acquisitions of scheduled commercial banks. Correct Answer: C Which of the following Central PublicSector Enterprises (CPSE) have the status of 'Maharatna'? 1.Steel Authority of IndiaLimited 2.Goa Shipyard Limited 3.Oil India Limited Select the correct answer using the code given below. A) 1 and 3 only

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B) 1, 2 and 3 C) 2 and 3 only D) 1 only Correct Answer: D Consider the following statements with reference to AGMARK: 1.It is a quality certification mark provided by the Governmentof India. 2.It provides grading for cereal and pulses only. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both1 and 2 D) Neither 1 nor 2 Correct Answer: A With reference to the Global Entrepreneurship Summit (GES), consider the following statements: 1.It is an annualentrepreneurship gathering involving entrepreneurs from around the world. 2.It was held for the first time in South Asia in2017. 3.The theme of GES 2017 was “Eliminating extreme poverty”. Which of the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1 and 3 only Correct Answer: B With reference to the New Development Bank, consider the following statements: 1.It is the first Multi-lateral DevelopmentBank established by developing countries and emerging economies. 2.China has highest voting power among the BRICSnations. 3.All United Nations (UN) member can become a member of Bank. Which of the statements given above is/are notcorrect? A) 1, 2 and 3 B) 3 only C) 2 and 3 only D) 2 only Correct Answer: D

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With regard to the Export Oriented Units (EOUs) scheme an EOU can be set up for: 1.Manufacturing of goods 2.Renderingservices 3.Export and Import Select the correct answer using the code given below. A) 1, 2 and 3 B) 2 and 3 only C) 3 only D) 1 and 2 only Correct Answer: A Arrange the following sectors in the decreasing order of their share in the exports of India during the year 2016-17: 1.Electronic goods 2.Agriculture & allied products 3.Engineering goods 4.Gems and Jewelers Select the correct answer usingthe code given below. A) 3-4-2-1 B) 1-3-2-4 C) 3-4-1-2 D) 4-3-1-2 Correct Answer: A Consider the following statements: 1.Agriculture sector in India has never registered a negative growth rate in past decade. 2.India‟s Services export growth have been accelerating since 1990s. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Which among the following government schemes target the workers of unorganized sector? 1.Aam AadmiBimaYojana 2.Pradhan Mantri Jan Dhan Yojana

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3.Rashtriya Swasthya Bima Yojana Select the correct answer using the codegiven below. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Public Sector Asset Rehabilitation Agency has been conceptualised to A) deal with the Non-Performing Assets held by banks B) manage idle assets held by Public sector companies in India C) work towards promotion of housing for Economically Weaker Sections D) rehabilitate employees of sick Public-sector undertakings. Correct Answer: A Which of the following directly impactInsurance Penetration in India? 1.Premium underwritten 2.Gross domesticproduct 3.Total population Select the correct answer using the code given below. A) 1 and 3 only B) 2 and 3 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: C Which among the following schemes have been launched for the aviation sector? 1.DigiYatra 2.UDAN 3.Vikalp Select thecorrect answer using the code given below. A) 2 only B) 2 and 3 only C) 1 and 2 only D) 1 and 3 only Correct Answer: C Consider the following statements regarding trade pattern in India: 1.Internal trade within India is larger than its internationaltrade.

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2.Smaller states within India trade (as percentage of GSDP) higher than the larger states. Which of the statementsgiven above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to the India Innovation Index, consider the following statements: 1.It aims to rank individuals involved in R&Dbased on their innovations. 2.It is an initiative of Ministry of Science & Technology. Which of the statements given aboveis/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D With reference to the National Anti-Profiteering Authority, consider the following statements: 1.It aims to ensure that thereduction in tax rates under the new Goods and Services Tax (GST) regime gets passed on to consumers. 2.It is headed bythe Union Finance Minister. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A With reference to Skill India Portal, an online collaborative platform between industry and workers, consider the followingstatements: 1.It is an initiative of Ministry of Skill Development & Entrepreneurship. 2.It has been launched to provide onlineskill training courses. Which of the above statement(s) is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2

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Correct Answer: C Spot Exchanges facilitate purchase and sale of: 1. Agricultural commodities 2. Metals 3. Bullion Select the correct answerusing the code given below. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Arrange the following parts of India's Forex Reserve in descending order: 1. Gold 2. Foreign Currency assets 3. SpecialDrawing Rights (SDR) 4. Reserve Tranche Select the correct answer using the code given below. A) 2-1-3-4 B) 4-1-2-3 C) 3-2-1-4 D) 1-2-3-4 Correct Answer: A With reference to economy, the term 'Autarky' is best described by which of the following? A) A closed economy B) An open economy C) A floating exchange rate D) A fixed exchange rate Correct Answer: A Which of the following is/are examples of durable consumer goods? 1. Petrol 2. Computers 3. Gas 4. Automobiles Select thecorrect answer using the code given below. A) 1, 3 and 4 only

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B) 2 only C) 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: C Consider the following statements about Foreign Portfolio Investor (FPI): 1. Any portfolio investment beyond 10 % of theequity of Indian company is treated as FPI. 2. They cannot invest in government securities. Which of the statement givenabove is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D In the context of economy, which of the following best describes the term 'Inventory'? A) It is a stock of fixed assets of the producers during an accounting year. B) It is the stock of unsold finished and semi-finished goods along with raw material. C) It is an expenditure by the producers on purchase of intermediate goods during an accounting year. D) It is an expenditure by the firm on Research and Development. Correct Answer: B Consider the following statements regarding Nidhi Companies: 1.The Nidhi companies borrow from and lend to the membersonly. 2.They are registered under Companies Act and are regulated by Ministry of CorporateAffairs. 3.They are includedunder NBFCs and are also regulated by RBI. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: D Which of the following are classified as Tertiary activities under service sector? 1.Trade

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2.Decision Making 3.Policyformulation 4.Communication Select the correct answer using the code given below. A) 1, 3 and 4 only B) 1 and 4 only C) 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: B Consider the following statements regarding Tertiary activities: 1.It involves the commercial output of services rather than theproduction of tangible goods. 2.It relies more heavily on specialised skills and experience rather than on the production techniques. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to the Quaternary activities, which of the following statements is/are not correct? 1.Unlike the tertiaryactivities, quaternary activities cannot be outsourced. 2.Quaternary activities are tied to resources and are not affected by theenvironment or localised market. Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Consider the following pairs: Type of worker Associated Activity 1.Blue Collar:Primary Activities 2.Gold Collar:QuinaryActivities 3.Red Collar:Workers in industries Which of the pairs given above is/are correctly matched? A) 1 and 3 only

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B) 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Activities that focus on the creation, re-arrangement and interpretation of new and existing ideas, data interpretation and theuse and evaluation of new technologies are known as: A) Secondary activities B) Quinary activities C) Tertiary activities D) Primary activities Correct Answer: B Which of the following constitutes the primary sector of the economy? 1.Fishing 2.Animal Husbandry 3.Mining 4.Forestry Selectthe correct answer using the code given below. A) 1 and 2 only B) 1, 3 and 4 only C) 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which among the following sectors is/are covered under the Index of Industrial Production(IIP)? 1.Mining 2.Manufacturing 3.Electricity Select the correct answer using the code given below. A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to the Micro, Small and Medium Enterprises in India, consider the following statements:

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1.They are categorised on the basis of net profit and number of persons employed. 2.Government has reserved certain items to bemanufactured exclusively by MSME sector. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D With reference to the recent changes in the norms for the priority sector lending, consider the following statements: 1.Loans to the agricultural sector will be categorised as direct and indirect having separate targets. 2.Foreign banks with less than 20branches will be exempted from priority sector lending. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Consider the following statements regarding Service Sector Employment. 1.The share of services in global employment hasdecreased in the past decade. 2.The percentage contribution of India's service sector to its GDP is greater than that of China. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B In the context of Indian economy, which of the following constitute export of services? 1.An Indian tourist visitingMauritius. 2.Bharti Airtel setting up its operations in Africa. 3.An Indian IT company selling software to a Chinese firm. 4.A Canadian national visiting India for liver transplant.

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Select the correct answer using the code given below. A) 1, 2, and 3 only B) 4 only C) 2, 3 and 4 only D) 2 and 4 only Correct Answer: C Which of the following correctly describes the phenomenon referred to as 'crowding-out'? A) Reduction in public sector spending owing to rise in private sector spending. B) Increase in public sector revenue owing to growth in private sector. C) Reduction in private sector spending owing to rise in public sector spending. D) Increase in private sector revenue owing to increased public expenditure. Correct Answer: C Arrange the following in the increasing order of their weightage in Index of Industrial Production: 1.Capital Goods 2.Intermediate Goods 3.Basic Goods Select the correct order using the code given below. A) 1-2-3 B) 2-1-3 C) 3-1-2 D) 3-2-1 Correct Answer: A Which of the following is/are examples of durable consumer goods? 1.Television sets 2.Automobiles 3.Food processingequipment Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B With reference to primary market, Consider the following statements:

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1.Both the buying and the selling of securities can takeplace on the stock exchange. 2.Prices are determined by demand and supply for the security. 3.The primary market promotescapital formation. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: C Which of the following is/ are recent policy initiatives taken by the Government of India to promote export ofservices? 1.Services Exports from India Scheme 2.Global Exhibitions on Services 3.Services Conclaves Select the correctanswer using the code given below. A) 1 and 3 only B) 2 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: D With reference to the recently approved 'Indian Enterprise Development Service' IEDS), considers the followingstatements. 1.It is under the aegis of Ministry of Micro, small and medium Enterprises MSME). 2.This service would help torealize the vision of Start-up India and Make in India. 3.It has been created as an All India Service created by an act ofParliament. Which of the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B 'Swiss Challenge Method', sometime seen in the news, is A) a process of giving contracts to private companies. B) a method of imparting skill training to youths. C) a method of social impact assessment.

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D) a process of bringing behavioral changes to make government programmes more effective. Correct Answer: A Which among the following industries arereserved for the public sector in India? 1.Atomic energy 2.Rail transport forpublic 3.Aerospace and defence related electronics 4.Industrial explosives. Select the correct answer using the codes givenbelow: A) 1, 3 and 4 only B) 1 and 2 only C) 2 and 4 only D) 1, 2 and 3 only Correct Answer: B During the 'License-Quota-Permit' regime before the liberalisation, which of the following activities required licensing inIndia? 1.Opening a new industry. 2.Opening more branches of an existing industry. 3.Expanding the output ofindustry. 4.Producing new varieties of goods by an industry. Select the correct answer using the codes given below. A) 1, 2 and 3 only B) 1 and 2 only C) 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following statements is/are correct regarding the industrial policy during the period of pre-liberalization inIndia? 1.The industrial licensing policy discouraged establishment of industries in backward regions. 2.The development ofsmall-scale industries was encouraged with the aimof generating employment. Select the correct answer using the codegiven below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2

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Correct Answer: B Services of Indian IT professional residing and working abroad would fall under which mode of WTO's delivery of service? A) Mode 1 B) Mode 2 C) Mode 3 D) Mode 4 Correct Answer: D With reference to Open Acreage Licensing Policy OALP), consider the following statements: 1.Under the policy a companycannot explore hydrocarbons without formal bid from the government. 2.It aims to enable a faster survey and coverage of theavailable geographical area which has potential for oil and gas discovery. 3.Successful implementation of OALP requiresbuilding of National Data Repository on geo-scientific data. Which of the statements given above is/are correct? A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: B In an economy, the classification of the sectors into Public and Private is characterized by 1.Investment priorities. 2.Nature ofeconomic activities undertaken. 3.Ownership of enterprise. Select the correct answer using the codes given below: A) 2 only B) 3 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: B Which of the following sectors have been conferred with the status of Priority Sector in order to ensure adequate institutionalcredit? 1.Renewable Energy

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2.Export Credit 3.Social Infrastructure 4.Micro, Small and Medium Enterprises Select the correctanswer using the codes given below. A) 2 and 4 only B) 1, 2 and 3 only C) 2, 3 and 4 only D) All of the above Correct Answer: D Which of the following is/are considered as “Primary sector”? 1.Micro enterprises 2.Mining and Quarrying 3.Electricity, Gasand Water Supply 4.Construction Select the correct option from the code given below A) 1 and 2 B) 2 and 4 C) 2 Only D) 1,3 and 4 Correct Answer: C Whichofthefollowing industry/industries requires an Industrial license in India? 1.Tobacco and Cigar products 2.Defence equipment 3.Atomic energy 4.Alcoholic drinks Select the correct answer using the codes given below: A) 1, 2 and 3 only B) 2 and 3 only C) 1, 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: C What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector? 1.Make inIndia 2.Skill India initiative 3. Start Up India scheme Select the correct answer using the code given below.

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A) 1 and 2 only B) 2 and 3 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: D Consider a country X. It is self-sufficient and trades only within its own borders. Then the country X is best known as A) An open economy B) A closed economy C) A globalized economy D) A socialist economy Correct Answer: B With reference to disinvestment in Public Sector Undertakings in India, consider the following statements: 1.Disinvestment can be identified as an active tool to reduce the burden of financing the PSUs. 2.In strategic disinvestment, the governmentcontrols the management while a significant proportion of a PSU’s share goes to a private sector. Which of the statementsgiven above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Consider the following statements about Non-Banking Financial Company (NBFC): 1. It cannot accept demand deposits. 2. Itdoes not form part of the payment and settlement system and cannot issue cheques drawn on it. Which of the statementsgiven above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Special Drawing Right (SDR) basket of IMF consists of

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1. US dollar 2. Indian Rupee 3. Chinese renminbi 4. Japanese yen 5. British pound sterling Select the correct answer using the code given below. A) 1, 2, 3, 4 and 5 B) 1, 3, 4 and 5 only C) 1, 3 and 4 only D) 2 and 5 only Correct Answer: B In the context of banking, currency deposit ratio (cdr) refers to the ratio of A) Money held by the bank to that in circulation in the economy. B) Currency introduced in the economy to the net change in foreign reserves. C) Money deposited by banks with RBI to total reserves held by banks. D) Money held by the public in currency to that they hold in bank deposits. Correct Answer: D Which of the following is/are likely to strengthen the corporate bond market in India? 1. Allowing banks to issue masalabonds. 2. Making government securities more accessible to retail investors. Select the correct answer using the code givenbelow. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Which of the following is/are correct with reference to the Insolvency and Bankruptcy Code, 2016? 1. It separatescommercial aspects of insolvency and bankruptcy proceedings from judicial aspects. 2. It provides for a Debt RecoveryTribunal (DRT) as the adjudicating authority with jurisdiction over individuals. Select the correct answer using the code givenbelow. A) 1 only B) 2 only C) Both 1 and 2

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D) Neither 1 nor 2 Correct Answer: C Which of the following are a part of the aggregate monetary resources in an economy? 1. Currency held by the public 2. Nettime deposits of commercial banks 3. Net demand deposits held by commercial banks Select the correct answer using thecode given below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which ofthe following benefits are associated with Masala Bonds? 1. Internationalization of Indian Rupee. 2. Tapping of a larger number of investors. 3. Reduction in borrowing cost for Indian companies. Select the correct answer using the codegiven below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to the Treasury Bills (T- bills), consider the following statements: 1. They are long-term government bondswith maturity of more than a year. 2. Theyareissuedatdiscount and redeemed in face value at maturity. Which of thestatements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B With reference to the Bank Rate, consider the following statements: 1. It is the rate below which commercial banks cannotgive loans to its customers. 2. A decrease in the bank rate indicates easy money policy by the central bank. Which of thestatements given above is/are correct?

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A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Which of the following most appropriately explains the concept of Wholesale Banking? A) Provide payment services and deposit products to small businesses and low- income households. B) Provide liquidity to commercial banks, financial institutions and large corporates. C) Provide more than 50% of its net loans to priority sectors. D) Merge loss-making public-sector banks to create a new wholesale bank. Correct Answer: B Consider the following statements with regard to depreciation: 1. It refers to that portion of the capital goods which goes inmaintenance and replacement of existing goods due to wear and tear. 2. To obtain net investment in an economy, depreciation is subtracted from the gross investment. 3. It takes into account unexpected fall in the market value of theassets due to recession. Which of the statements given above is/are correct? A) 1 only B) 1, 2 and 3 C) 3 only D) 1 and 2 only Correct Answer: D Consider the following statements regarding capital and current account of Balance of Payments: 1. The current account hasa direct effect on the flow of income in a country. 2. The capital account influences the volume of assets which a countryholds. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C

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With reference to the Market Stabilization Scheme (MSS), consider the following statements: 1. It allows RBI to infuseliquidity in the market during liquidity shortage. 2. RBI issued the MSS bonds in the aftermath of demonetisation. Which of thestatements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Consider the following statements about Participatory Notes: 1. It is a derivative instrument issued in foreign jurisdictionsagainst underlying Indian securities. 2. RBI and SEBI have a dual control over P-Notes in order to check its volatility. 3. TheP-Note holder does not enjoy any votingrights in relation to security/shares referenced by the P-Note. Select the correctanswer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C In the context of Liquidity Adjustment Facility (LAF) of the RBI, consider the following statements: 1. It is available only to thescheduled commercial banks. 2. Banks can borrow amount equal to its Net Demand and Time Liabilities (NDTL). 3.Government securities can be used as collateral for LAF. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: C Which ofthe following is/are the components of Personal Income? 1. Net Interest Payments made by households

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2. Transfer payments 3. Undistributed profits of firms Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: C Which of the following factors may be attributed to sluggish growth of bank credit in recent years? 1. Banks not passing onthe entire benefit of monetary easing to borrowers. 2. Moreattractive interest ratesfor borrowers in the bond market. 3. Weakbank balance sheet as well as corporate balance sheet. Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D A derivative is a security with a price derived from one or more underlying assets. These assets can be: 1. Stocks 2. Bonds 3. Currencies 4. Interest rates 5. Market indices Select the correct answer using the code given below. A) 1 and 2 only B) 2, 3 and 4 only C) 1, 4 and 5 only D) 1, 2, 3, 4 and 5 Correct Answer: D With reference to Nominal Effective Exchange Rate, consider the following statements: 1. It is a weighted average rate ofexchange of a country's currency for a basket of multiple foreign currencies.

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2. It accounts for the inflation rate of the homecountry relative to the inflation rate of its trading partners. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which of the following appear as “liability” on RBI‟s balance sheet? 1. Foreign Exchange 2. Loan to Commercial Banks 3.Currency held by Public 4. Deposits of Commercial Banks with RBI Select the correct answer using the code given below. A) 1 and 2 only B) 1, 3 and 4 only C) 1 and 3 only D) 3 and 4 only Correct Answer: D To finance its deficit, government prefers borrowing from public over RBI. What can be the best reason for this? A) Rate of interest charged by RBI is higher. B) Government has to return the sum to RBI within a fixed period of time. C) Public borrowing does not affect the money supply in the market. D) It increases the sale of government bonds. Correct Answer: C With reference to currency deposit ratio, consider the following statements: 1.It is the ratio of money held by the public incurrency to that they hold in bank deposits. 2.An increase in the deposit rates decreases the money multiplier effect. Which ofthe statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C

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Consider the following points of differences between a share and a debenture: 1.While a share capital is the credit to thecompany, a debenture is an ownership capital. 2.While dividend is paid on shares, interest is paid on debentures. Which ofthe statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Which of the following statements is/are correct regarding Monetary Transmission? 1.It refers to the process by which acentral bank’s monetary policy decisions are passed on to the financial markets. 2.Rising Non-Performing Assets (NPAs) andhigher returns on small savings schemes may hinder effective monetary transmission. 3.Lowering of CRR and SLRrequirements may help ensure effective monetary transmission. Select the correct answer using the code given below. A) 1 and 3 only B) 2 and 3 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: D Which of the following are the components of Balance of Payments (BoP)? 1.Financial capital transfers 2.External loan andinvestment 3.Foreign Institutional Investment 4.Issuing of external bonds 5.Export and Imports of Goods and Services Selectthe correct answer using the code given below. A) 1, 2 and 3 only B) 2, 3 and 4 only C) 1, 4 and 5 only D) 1, 2, 3, 4 and 5 Correct Answer: D Which of the following measures can be used to reduce inflation?

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1.Increasing Cash Reserve Ratio (CRR). 2.Increasing Statutory Liquidity Ratio (SLR). 3.Reducing fiscal deficit. 4.Reducing Reverse Repo Rate. Select the correct answer using thecode below. A) 1 and 2 only B) 1, 2 and 3 only C) 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: B In the context of management of liquidity, consider the following pairs: Type of Liquidity Ideal Management 1. Short term(volatile) Technique Repo Auctions 2.Medium term: Open Market Operations 3.Long Term Cash Reserve Ratio Which ofthe pairs given above is/are correctly matched? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D How does Shadow Banking differ from commercial banking? 1.While commercial banks are tightly regulated, shadowbanking regulation lacks transparency. 2.While commercial banks can create money being depository institutions, shadow banking cannot create money. 3.While liabilities of commercial banks are insured, shadow banking liabilities are not insured. 4.While commercial banks have access to central bank liquidity in the times of distress, shadow banking does nothave such recourse. Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 2, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the statements given below is/are correct regarding "Bear Market"?

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1.It is a market in decline. 2.Investors rush tobuy stocks instead of selling. 3.Unemployment levels may rises Select the correct answer using the code given below. A) 1 only B) 2 and 3 only C) 1 and 3 only D) 2 and 3 Correct Answer: C High powered money is: A) That money which is issued by the authority of the government. B) That money, whose money value exceeds commodity value of money. C) Notes and coins held by the people as well as cash reserves of the commercial banks. D) That money which is accepted as a medium of exchange because of the trust between the payer and the payee. Correct Answer: C Anchor Banks refer to: A) Public Sector banks that will drive the consolidation process among the state-owned banks. B) Public Sector banks that are providing most of the infrastructural financing. C) Pubic Sector Banks that will coordinate banking activities in a district. d) Public Sector Banks that have been classified as Domestic Systemically Important Banks (D-SIBs). Correct Answer: A Consider the following statements: 1.Decreasing the reverse-repo rate can be a suggestive monetary policy to combat inflation. 2.Purchasing power of money decreases if there is inflation in the market. 3.Inflation favours the debtors. Select thecorrect answer using the code given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C

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The Macro-Vulnerability Index (MVI) is used for calculating the Macro-Economic performance of the Country. Which of thefollowing factors are used to determine MVI? 1.Current Account Deficit 2.Fiscal Deficit 3.Primary Deficit 4.Rate ofInflation 5.Exchange Rate Select the correct answer from the code given below. A) 2, 4 and 5 only B) 3, 4 and 5 only C) 1, 2 and 4 only D) 1, 2, 4 and 5 only Correct Answer: C Sterilization by RBI is a/an: A) Open market operation B) Bank rate policy C) Deficit financing operation D) Change in SLR Correct Answer: A With reference to Marginal Standing Facility (MSF), consider the following statements: 1.It does not affect the value of rupeein international market as it is used for overnight transactions. 2.The purpose of marginal standing facility is to reducevolatility in the overnight lending rates in the inter-bank market. 3.Marginal standing facility is generally kept lower than reporate. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: C Which of the following are probable benefits of securitization, in which assets are transformed into security? 1.For the ownerof the asset, it improves the liquidity position as the future receivables are replaced by cash.

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2.It improves both the efficiencyof the financial markets and market liquidity. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to money markets, consider the following statements: 1.Call money refers to borrowing/lending of funds onovernight basis. 2.Notice Money refers to borrowing/lending of funds for period exceeding 14 days. Which of the statementsgiven above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Priority sector lending by banks in India constitutes the lending to which of the following sectors? 1.RenewableEnergy 2.Education 3.Housing 4.Social Infrastructure Select the correct answer using the code given below. A) 1 and 4 only B) 1, 2 and 3 only C) 2, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D With reference to Nominal Effective Exchange Rate (NEER), which among the following statements is/are correct? 1.It is the weighted average of bilateral nominal exchange rates of the home currency in terms of foreign currencies. 2.NEER coefficient higher than 1 means that the home country's currency will usually be worth more than an imported currency. 3.In India, it is measured by Ministry of Statistics and Programme Implementation. Select the correct answer using the code givenbelow. A) 1 only

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B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Which among the following World Bank Group organizations was established to promote the growth of the private sector? A) International Bank for Reconstruction and Development (IBRD) B) International Finance Corporation (IFC) C) Multilateral Investment Guarantee Agency (MIGA) D) International Centre for Settlement of Investment Disputes (ICSID) Correct Answer: B With reference to Green Bonds in India, consider the following statements: 1.Green bond is a debt instrument issued forrenewable as well as non-renewable energy projects. 2.Both public and private sector banks can issue such bonds. 3.It is alow-risk bond as repayment is tied to the issuer rather than success of the project. Which of the statements given aboveis/are correct? A) 1 and 2 only B) 2 and 3 only C) 3 only D) None Correct Answer: B With reference to Small Banks and Payment Banks, consider the following statements: 1.While both can accept deposits,Payment Banks cannot issue debit cards. 2.While both are required to maintain CRR, Small Banks are also required tomaintain SLR and PSL requirements. 3.Both have the same initial minimum capital requirement of 100 cr INR. Which of thestatements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D

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With reference to Cash Reserve Ratio (CRR) which of the following statements is/are correct? 1.CRR is a reserverequirement that requires banks to maintain in the form of gold, cash or government securities with itself. 2.When the RBI lowers CRR, it is said to follow an expansionary monetary policy. Select the correct answer from the codes given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B With reference to recapitalization of public sector banks, consider the following statements: 1.Reduction of RepoRate. 2.Reduction of Statutory Liquidity Ratio (SLR). 3.Infusion of more capital into the banks. Which of the statement(s) givenabove is/are not correct? A) 2 only B) 1 and 3 only C) 1 and 2 only D) 2 and 3 only Correct Answer: C Consider the following statements regarding Dear Money Policy: 1.RBI raises the Bank Rate. 2.Commercial banks can getthe money at the higher rate of interest. 3.RBI starts raising the CRR and sells the securities to Commercial Banks. Which ofthe statements given above is/are correct? A) 1 only B) 1 and 3 only C) 1, 2 and 3 D) None Correct Answer: C According to RBI, Banks are required to classify Special Mention Accounts (SMA) for which of the following reasons? A) Categorization for different sectors in Priority Sector Lending. B) Capital norms as per Basel III norms. C) Early recognition of stressed assets.

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D) None of the above Correct Answer: C With reference to Balance of Trade (BoT), consider the following statements: 1.India has continued to suffer from anun favourable BoT since the beginning of planning era without any exception. 2.For a favourable BoT, imports were restricted through Licensing of Imports, Tariff restrictions and Quantitative restrictions. 3.For favourable BoT exports were promoted through devaluation, tax concession, Convertibility of rupee and EXIM Bank. Which of the statements given above is/arecorrect? A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: B Which of the following are the components of the Indian money market? 1.Treasury bills 2.Call Money market 3.CommercialBills 4.Repo and Reverse repo markets 5.Mutual Funds Select the correct answer using the code given below. A) 1, 2, 3 and 4 only B) 1, 4 and 5 only C) 2, 3 and 5 only D) 1, 2, 3, 4 and 5 Correct Answer: D Which of the following organization has decided to set-up South Asia Regional Training and Technical Assistance Center (SARTTAC) along with India? A) World Bank (WB) B) International Monetary Fund (IMF) C) Asian Development Bank (ADB) D) Asian Infrastructure Investment Bank (AIIB) Correct Answer: B Consider the following statements with reference to Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR):

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1.CRR isthe fraction of the total Net Demand and Time Liabilities maintained by bank with itself in form of cash deposits. 2.SLR is the fraction of the total Net Demand and Time Liabilities maintained by bank with RBI in form of specified liquid assets. 3.CRR and SLR are part of Liquidity Adjustment Facility (LAF). Which of the statements given above is/are correct? A) 1 and 2 only B) 3 only C) 1, 2 and 3 D) None Correct Answer: D Which among the following is/are the qualitative tools to control credit creation by RBI?1.Open Market Operations2.Repo Rate3.Margin Requirements4.Credit Rationing PolicySelect the correct answer using the code given below: A) 1 and 2 only B) 3 only C) 1, 2 and 3 only D) 3 and 4 only Correct Answer: 3 and 4 only Which of the following functions can be performed by a Payment bank? 1.Opening current deposit accounts 2.Opening Demand deposit accounts 3.Accept NRI deposits 4.Distribution ofinsurances. 5.Utility bill payments Select thecorrect answerusing the code given below. A) 1, 2 and 3 only B) 1, 3 and 5 only C) 2, 3, 4 and 5 only D) 1, 2, 4 and 5 only Correct Answer: D With reference to Cess, consider the following statements: 1.Cess is earmarked for a particular purpose only andcannot be used for any other purpose. 2.Proceeds of cess are distributed on the recommendation of FinanceCommission. Which of the statements given above is/are correct?

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A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which of the following statements is/are correct regarding Currency Deposit Ratio (CDR)? 1.It is the ratio of money held bythe public in currency to that they hold in bank deposits. 2.There will be decrease in CDR during festive season. Select thecorrect answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Supply curve represents the relationship between product price and quantity of product that a seller is willing and able tosupply. Shifting of supply curve rightward would imply which of the following? A) Increase in profits B) Decrease in profits C) Reduction in quantity supplied D) Reduction in price of its goods Correct Answer: A The term "Escrow account" generally refers to: A) The money held in a third-party account on behalf of transacting parties. B) The bank accounts that could be maintained without or with very low minimum balance. C) The bank account on which no restrictions on the number of times deposit in cash/cheque can be made. D) The bank accounts for senior citizens and disabled persons. Correct Answer: A As per the law of demand, with all other factors being constant, the demand of any particular good depends on which of thefollowing factors? 1.Price of the good 2.Price of other goods

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3.Consumer preference Select the correct answer from the codegiven below. A) 1 only B) 2 and 3 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: A Money supply refers to the total stock of money held by 'Public'. Which of the following is/are part of the term public in thiscontext? 1.Households 2.Non-Banking Financial Companies 3.Commercial Banks 4.Reserves of IMF in Indian currency keptwith RBI Select the correct answer using the code given below. A) 3 and 4 only B) 1, 2 and 3 only C) 1, 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: C Which of the following entities/institution can operate as Banking Correspondents? 1.Retired bank employees 2.Post-Offices 3.NBFC-MFI 4.NBFC-ND 5.Retired Teachers Select the correct answer using the code given below. A) 1 and 2 only B) 2, 3 and 4 only C) 1, 3 and 5 only D) 1, 2, 3, 4 and 5 Correct Answer: D Which among the following is/are included in the Priority sectors for lending by commercial banks? 1. Housing 2. Education 3.Export Credit 4. Renewable Energy

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Select the correct answer using the code given below. A) 1, 2 and 4 only B) 1 and 3 only C) 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following schemes do not constitute a Collective Investment Scheme (CIS)? 1.Co-operative Society 2.Non-Banking Financial Companies 3.Insurance Companies 4.Chit Business Select the correct answer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 1, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following problems is/are associated with the barter system of exchange? 1.It requires the double coincidenceof wants. 2.It is difficult to use in large economies. 3.It is difficult to carry forward perishable wealth under barter system. Selectthe correct answer using the code given below. A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D The Reserve Bank of India performs which of the following functions? 1.Regulation and supervision of the non-banking financial institutions. 2.Management of foreign exchange reserves 3.Banker to banks 4.Banker to the Central and StateGovernments Select the correct answer using the code given below. A) 1, 2 and 3 only B) 1, 2 and 4 only

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C) 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D With reference to Repo rate, consider the following statements: 1.It is the rate at which the RBI borrows money fromcommercial banks. 2.Both government securities and corporate bonds can be used for transactions under Repo rate. Whichof the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B In the context of economy, sterilization by RBI refers to: A) Operations by RBI to neutralize effects of excess inflow of foreign investments in the economy. B) Operations by RBI to neutralize the effects of high non-performing assets on the economy. C) Operations by the RBI to neutralize the effects of high fiscal deficit on the economy. D) None of the above Correct Answer: A With reference to Capital Adequacy Ratio (CAR), consider the following statements: 1.It is the ratio of banks capital to itsrisk-weighted credit exposure (loans). 2.A bank with lower CAR is considered safe. Which of the statements given aboveis/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Which of the following is/are correct regarding the High-Powered Money? 1.It is the total liability of the central monetaryauthority of the country. 2.It includes deposits of the Government and commercial banks with central monetary authority.

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Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C In an economy a situation of liquidity trap is Characterised by which of the following? 1.Low savings rate 2.High demand forbonds 3.Expansionary monetary policy Select the correct answer using the code given below. A) 1 and 2 only B) 2 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: C Which one of the following statement regarding Factor of Production is correct? A) It is the input that a firm uses in the production process. B) It is the output which is produced in the production process. C) It is the additional input that is required to achieve the maximum output. D) It is the ratio of the output to that of the input of the production process. Correct Answer: A Which of the following banks can be classified as universal banks? 1.Small Finance banks 2.Payment banks 3.Non-Banking Financial companies. Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 1, 2 and 3 D) None Correct Answer: D Consider the following differences between Marginal Cost of Funds based Lending Rate(MCLR) and Base Rate:

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1.Unlike base rate calculation, Cash Reserve Ratio (CRR) cost is considered in the calculation of MLCR. 2.Unlike base ratecalculation, Repo rate is mandatory in the calculation of MCLR. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B With reference to marginal standing facility, consider the following statements: 1.It allows banks to borrow money from theRBI over and above what is available to them through the Liquidity Adjustment Facility. 2.It is a penal rate and is always keptabove repo rate. 3.Under it, banks can avail funds only by pledging government securities. Which of the statements givenabove is/are correct? A) 1 and 3 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D To finance its deficit, government prefers borrowing from public over RBI. The main reason is A) Rate of interest charged by RBI is higher. B) Government has to return the sum to RBI within a fixed period of time. C) Public borrowing does not affect the money supply in the market. D) This increases the sale of government bonds. Correct Answer: C With reference to Participatory Notes (PN), consider the following statements: 1.These are financial instruments used byinvestors that are not registered with the SEBI to invest in Indian securities. 2.The investors enjoy the voting rights in relationto shares invested through the PN. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2

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Correct Answer: A Which among the following is/are the instruments of secondary capital market? 1.Bonds 2.Initial PublicOffering 3.Commercial Papers Select the correct answer using the code given below. A) 1 and 3 only B) 1 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A With reference to Rural Infrastructure Development Fund (RIDF), consider the following statements: 1.The shortfalls in thepriority sector lending of both foreign banks and public sector banks are deposited in RIDF. 2.It is maintained by the NationalBank for Agriculture and Rural Development (NABARD). Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Consider the following points of differences between a share and a debenture: 1.While a share capital is the credit to thecompany, a debenture is an ownership capital. 2.While dividend is paid on shares, interest is paid on debentures. Which ofthe statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B With reference to money markets, consider the following statements: 1.Call money refers to borrowing/lending of funds onovernight basis. 2.Notice Money refers to borrowing/lending of funds for period exceeding 14 days.

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Which of the statementsgiven above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A With reference to Direct Benefit Transfer (DBT), consider the following statements: 1.Under DBT, the monetary benefits fromdifferent schemes will be directly transferred to the beneficiary's bank account. 2.It will help to eliminate waste in subsidytransfer and reduce corruption. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Consider the following statements with regard to Pension Fund Regulatory andDevelopment authority (PFRDA): 1.It isa non-statutory body under the ministry of Social Justice. 2.Pension funds of both private and Government employee comesunder its purview. 3.The National Pension Scheme (NPS) is regulated by PFRDA. Which of the following statements givenabove are correct A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: B Which of the following is/are the components of Current Account of the Balance of Payments? 1.Investments of Indiannationals in other countries. 2.Dividends from Foreign Investment 3.Loans from World Bank Select the correct answer usingthe code given below. A) 1 and 2 only B) 2 only

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C) 1 and 3 only D) 1, 2 and 3 Correct Answer: B Which of the following is/are part of transfer payments? 1.Payment for Services provided abroad 2.Donations fromabroad 3.Remittance Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 only D) 2 and 3 only Correct Answer: D With reference to rural credit in India, consider the following statements: 1.The share of non-institutional credit is greaterthan the share of institutional credit for farmers in India. 2.Among the institutional credit agencies, NABARD is the biggestcontributor of direct loan to farmers. 3.Ratio of agricultural credit to agricultural GDP has increased in the last decade. Whichof the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 3 only D) 2 and 3 only Correct Answer: C Consider the following statements with regard to Asian Development Bank (ADB): 1.It is a regional development bankheadquartered in Tokyo. 2.The bank admits members from the Asian Continent only. 3.It releases annual report ofCreativityProductivity Index. Which of the statements given above is/are correct? A) 1 and 2 only B) 2 and 3 only C) 3 only D) 1 and 3 only Correct Answer: C

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With reference to Bitcoins, consider the following statements: 1.The value of the Bitcoins is based on a basket ofcurrencies. 2.In India, only the entities approved by the Reserve Bank of India can transact in Bitcoins. Which of thestatements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Qualified Foreign Investors (QFIs) are allowed to invest in which of the following segments of the capital market? 1.MutualFunds 2.Equities 3.Corporate Debt Select the correct answer using the code given below. A) 1 and 3 only B) 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to the economy, what does the term unicorn club refer to? A) It refers to the startups with valuation greater than $1 billion. B) It refers to the companies with presence in multiple sectors of economy. C) It refers to countries with a growth rate greater than 10 per cent in an year. D) None of the above Correct Answer: A Which of the following is/are the characteristics of "Hard currency" i.e, currency of a strong geo-political country with stableeconomy? 1.Low liquidity 2.Free convertibility 3.Full convertibility Select the correct answer using the codes given below. A) 3 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3

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Correct Answer: C Which among the following statements is/are correct about green bonds? 1.It is an equity instrument used to raise capital tofund green projects. 2.Private corporations cannot issue green bonds. Select the correct answer using the code given below. A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D With reference to MUDRA (Micro Units Development and Refinance Agency) Bank, consider the following statements: 1.The funding to small entrepreneurs will be disbursed through both banks and non-banking financial institutions (NBFCs). 2.The bank will provide more than 50% of the loans to SC/ST entrepreneurs. 3.MUDRA Bank is both financier and regulator ofMicro Finance Institutions (MFIs). Which of the statements given above is/are true? A) 1 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: A Which of the following is/are the components of Capital Account of Balance of Payments? 1.Foreign DirectInvestment 2.Foreign Institutional Investment 3.Deposits by NRIs Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 3 only D) 1, 2 and 3 Correct Answer: D Which of the following can reduce the deficit in Balance of Payments? 1.Reducing import custom duties

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2.Restrictive monetary policy 3.Appreciation of domestic currency. Select the correct answer using the code given below. A) 1 and 3 only B) 2 and 3 only C) 2 only D) 1 and 2 only Correct Answer: C Which of the following are part of World Bank Group of which India is also a member? 1.International Bank forReconstruction and Development. 2.Multilateral Investment Guarantee Agency. 3.International DevelopmentAssociation. 4.International Center for the Settlement of Investment Disputes. Select the correct answer using the code givenbelow. A) 1 and 3 only B) 3 and 4 only C) 1, 2 and 3 only D) 1, 2 and 4 only Correct Answer: C Which of the following is correct with respect to the "convertibility of Indian rupee" A) It is fully convertible on both capital and current account B) It is fully convertible on current account and partially on capital account C) It is partially convertible on both capital and current account D) It is fully convertible on capital account and partially on current account Correct Answer: B Consider the following statements with respect to Real Exchange Rate: 1.It is calculated by adjusting the nominal exchangerate with purchasing power parity between the two countries. 2. If the real exchange rate rises above one, it means thatgoods at home have become more expensive than goods abroad. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2

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Correct Answer: A Which of the following is/are the advantages of a fully convertible rupee? 1.Increased liquidity in financialmarkets. 2.Development of onshore rupee market. 3.Complete determination of currency exchange rate by the RBI. 4.Easyaccess to foreign capital. Select the correct answer using the code given below. A) 1 and 2 only B) 1, 2 and 4 only C) 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: B Which of the following functions is/are performed by RBI? 1.Protection of depositors' interest 2.Managing of foreignexchange. 3.Performs merchant banking function forthe central and the state governments Select the correct answer usingthe code given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following is/are examples of narrow money? 1.Currency 2.Net demand deposits 3.Saving deposits with Postoffice saving banks 4.Net time deposits Select the correct answer using the codes given below. A) 1, 2 and 3 only B) 1, 3 and 4 only C) 2 and 4 only D) 1, 2, 3 and 4 Correct Answer: A Maintaining a Cash Reserve Ratio CRR) is not mandatory for which of the following banks in India? 1.Banks with capitalbase below a certain limit prescribed by RBI

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2.Banks that lend majority of their capital to micro finance units 3.Banks thathave sponsored self-help groups to promote financial inclusionand development Select the correct answer using the codebelow. A) 1 and 2 only B) 2 and 3 only C) 1 only D) None Correct Answer: D Which of the following reports are published by the International Monetary Fund IMF) ? 1.Doing Business Report 2.GlobalCompetitive Index 3.World Economic Outlook4.Global Financial Stability Report Select the correct answer using code givenbelow. A) 1 and 2 only B) 1, 2 and 4 only C) 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: C With reference to Bank rate and Repo rate, consider the following statements: 1.While Bank rate is used for long termlending by RBI to commercial banks, Repo rate is used for short term. 2.While lending at Bank rate requires governmentsecurities as collateral Repo rate does not require Governmentsecurities as collateral. Which of the above statements is/arecorrect? A) 1 only B) 2 only C) Both 1 and 2 only D) Neither 1 nor 2 Correct Answer: A Money supply in an economy can be measured using 1.Currency notes and coins 2.Demand deposits with commercialbanks 3.Saving deposits with Post offices Select the correct answer using the code given below. A) 1 only

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B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following is/are determined by the quota of a member country at IMF? 1.Financial resources a member isobliged to provide to the IMF. 2.Voting power of the member country. 3.Amount of financing a member can obtain from theIMF. Select the correct answer using the code given below. A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D According to RBI, Banks are required to classify Special Mention Accounts SMA) for which of the following reasons? A) Categorization for different sectors in Priority Sector Lending. B) Capital norms as per Basel III norms. C) Early recognition of stressed assets. D) None of the above Correct Answer: C Which of the following is the component of Capital Account of Balance of Payments? A) Investments by Indian residents in shares of foreign companies B) Import of goods and services C) Investment income in the form of interest D) Private remittances. Correct Answer: A Which of the following policy instruments are used by RBI to maintain reserve deposit ratio in banks? 1.Cash ReserveRatio 2.Statutory Liquidity Ratio 3.Bank Rate Select the correct answer using the code given below. A) 1 only

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B) 1 and 2 only C) 3 only D) 1, 2 and 3 Correct Answer: D With reference to economy, what does the Seigniorage, refer to? A) The delivery of financial services at affordable costs to disadvantaged and low-income segments of society. B) The economic cost of producing a currency within a country. C) The total value of all goods and services produced over a specific time period in an economy. D) Actions taken by a country's central bank to counter the effects on the money supply caused by a balance of payments surplus. Correct Answer: B With reference to the Money market instruments in India, Consider the following statements regarding Treasury Bills: 1.They are issued at a price which is lower than their face value and repaid at par. 2.They are issued to meet short-term requirementof funds of central government. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C Consider the following statements regarding Domestic Systemically Important Banks D-SIBs): 1.These are banks whosefailure would have an impact on the entire domestic financial system. 2.Banks are designated as D-SIBs by the Bank BoardBureau. 3.Currently State Bank of India and ICICI Bank Ltd are designated as D-SIBs. Which of the statements given aboveis/are correct? A) 1 only B) 1 and 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C

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Which of the following organizations is mandated to implement the Foreign Exchange Management Act, 1999 andPrevention of Money Laundering Act, 2002? A) Directorate of Enforcement B) Central Economic Intelligence Bureau C) Financial Intelligence Unit - India D) Integrated Financial Unit Correct Answer: A With reference to Green Masala Bonds, consider the following statements: 1.They are used to raise money from overseasmarkets in any hard currency. 2.Money raised from these bonds is used for development of renewable energyprojects. 3.They can be raised by both public and private enterprises. Which of the statements given above is/are correct? A) 1 and 2 only B) 2 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: B Which among the following best describes the term 'Wholesale Banking'? A) Providing payment services and deposit products to small businesses and low-income households only. B) Providing liquidity to commercial banks, financial institutions and large corporates. C) Providing banking services through regional rural banks. D) Selling of non-performing assets to asset reconstruction companies for improving the balance sheets. Correct Answer: B With reference to the participatory notes (p-notes) in India, consider the following statements: 1.The value of p-notes isdetermined on the basis of shares bought on Indian stock exchange. 2.An Indian citizen residing in India is not allowed toinvest in p-notes. 3.An entity investing in p-notes has to comply with Indian KYC norms. Which of the above statementsis/are correct? A) 1 and 2 only B) 2 only C) 1 and 3 only

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D) 1, 2 and 3 Correct Answer: D With reference to stock variables and flowvariables, which of the following are classified as flowvariables? 1.Income 2.Profits 3.Bank Balance 4.Equity Shareholdings Select the correct answer using the code given below. A) 1 and 2 only B) 3 and 4 only C) 1, 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: A Consider the following statements withrespect to Basel III norms: 1.It ensures that financial institutions have enoughcapital to ensure liquidity and stability. 2.It requires banks to maintain high Tier I capital. 3.They are binding on all members ofWTO. Which of the statements given above is/are correct? A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 only Correct Answer: B White label atms, often seen in news, are: A) ATMs which are set up, owned and operated by private non-bank companies. B) ATMs where hardware of the ATM machine is owned by a service provider, but cash management is provided by a sponsor bank. C) ATMs which are set up, owned and operated by schedule commercial banks. D) ATMS which are set up, owned and operated by the local self-governments. Correct Answer: A Priority sector lending by Banks constitute lending for: 1.Nuclear power plants 2.Micro, Small and MediumEnterprises

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3.Education and health 4.Housing 5.Agriculture Select the correct answer using the code given below. A) 1 and 4 only B) 1, 2, 3 and 5 only C) 3 and 5 only D) 2, 3, 4 and 5 only Correct Answer: D With reference to NABARD, consider the following statements: 1.It is a statutory body. 2.It provides subsidized loans tofarmers. 3.It operates under the dual role of RBIand Government of India. Which of the statements given above is/arecorrect? A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C Consider the following statements with respect to Banks Board Bureau BBB): 1.It is mandated to recommend for selectionof heads of Public sector banks and Financial Institutions. 2.It is a component of Indra Dhanush Plan. 3. It is headed by theRBI governor. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A Consider the following statements with respect to Liquidity Adjustment Facility LAF): 1.It is a long term credit control measureof the central bank. 2.It infuses and absorbs excess liquidity through Repo rate and Reverse reporate. 3.Monetary PolicyCommittee is mandated to decide on key rates to carry out Liquidity Adjustment in India. Which of the statements givenabove is/are correct?

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A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C Which of the following statements is/are correct about the Foreign Currency Non Resident FCNR) account? 1.It is an accountthat can be maintained by both NRIs as well as PIOs. 2.It can be maintained in both foreign and Indian currency. 3.It can beopened as both savings as well as fixed deposit accounts. Select the correct answer using the code given below. A) 1 and 2 only B) 1 only C) 3 only D) 1, 2 and 3 Correct Answer: B Which of the following is used by the Reserve Bank of India to anchor its monetary policy? A) CPI-Agricultural Labour B) CPI-Industrial Worker C) WPI D) CPI combined) Correct Answer: D Quantitative Easing involves which of thefollowing? 1.Buying of government securities by the Central Bank 2.Short-terminterest rates approaching near zero level 3.Printing of new currency Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 3 only D) 1, 2 and 3 Correct Answer: B Which of the following are the qualitative methods used to ration credit by the Central Bank? A) Regulation of margin requirements

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B) Variable portfolio ceiling C) Moral suasion D) All of the above Correct Answer: D Which of the following best describes 'bankruptcy'? A) Inability of a person or corporate to pay up his debt at the due date. B) When a firm is declared by an authority as incapable of paying up its debt at any time. C) Winding up of a corporation or incorporated entity. D) a plan proposed by any authorized person/entity for enabling the overdue payments. Correct Answer: B Which of the following constitute a part of double financial repression on Indian banking system? 1.Statutory LiquidityRatio 2.Cash Reserve Ratio 3.Priority Sector lending 4.High Inflation Select the correct answer using the code given below. A) 1 and 3 only B) 2 and 4 only C) 1, 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: D Consider the following statements about Fiat Money: 1.It is currency declared as legal tender by the government. 2.It isbacked by a physical commodity. 3.Demonetized currency is an example of fiat money. Which of the statements given aboveis/are correct? A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: A Which of the following is obtained when revenue expenditure resulting in the creation of capital assets is excluded fromrevenue deficit?

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A) Primary Deficit B) Budget Deficit C) Effective Revenue Deficit D) Fiscal Deficit Correct Answer: C With reference to Marginal Cost of Lending Rate MCLR), consider the following statements: 1.It is the minimum interest ratefor loans. 2.It is replaces the base rate system 3.It is determined by the RBI. Select the correct answer using the code givenbelow. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Money in a modern economy acts as: 1.Medium of exchange 2.Unit of account 3.Store of value 4.Standard of deferredpayment Select the correct answer using the code given below. A) 1 only B) 2 and 4 only C) 1, 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: D The government of India is setting up Skill Banks to: A) Facilitate refinancing of banks lending under Skill India Mission. B) Provide skills to women in disturbed areas. C) provide skills to youth emigrating to other countries. D) Train teachers for promoting entrepreneurship among children. Correct Answer: C India is not a member of which of the following agencies of World Bank? A) International Bank for Reconstruction and Development IBRD). B) International Development Association IDA).

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C) International Finance Corporation IFC). D) International Centre for the Settlement of Investment Disputes ICSID). Correct Answer: D With reference to Market Stabilization Scheme Bonds, consider the following statements 1.They are special bonds issued bythe RBI on behalf of the government with the objective of managing excess liquidity. 2.They qualify for SLR requirements thatbanks needs to maintain in the form of treasury bills and government bonds. 3.They are raised through an auction and aretradable in the secondary market. Which of the statements given above is/are correct? A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following could be an effect of Deficit Financing? 1.Increase in public debt 2.Fall in price levels 3.Widening ofincome inequality Select the correct answer using the code given below. A) 1 only B) 1 and 3 only C) 2 only D) 1, 2 and 3 Correct Answer: B Which of the following statements regarding 'small finance banks' is/are correct? 1.They are required to maintain both CRRand SLR. 2.They are not required to follow Priority Sector Lending norms. 3.Foreign investments in these banks is notpermitted. Select the correct answer using the code given below. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: A

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Which of the following is /are correct with respect to Payment banks? 1.They cannot accept term deposits. 2.They canprovide forex services. 3.They can provide both debit and credit cards. Select the correct answer using the code given below. A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: A With reference to the Insolvency and Bankruptcy Code 2015, consider the following statements: 1.It aims to set upInsolvency and Bankruptcy Board of India. 2.It abolishes National Company Law Tribunal NCLT). 3.It covers insolvencyresolution ofcompanies as well as individuals. Which of the statements given above is/are correct? A) 1 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Which of the following functions are performed by the MUDRA Bank? 1.Refinancing of scheduled banks which finance microenterprises. 2.Encouraging women entrepreneurs. 3.Securitization of loan portfolio of banks. 4.Accreditation of micro financeinstitutions. Select the correct answer using the code given below. A) 1 and 2 only B) 1, 3 and 4 only C) 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following statements is/are correct with regard to Gramin BhandaranYojana? 1.It aims for creation of storagecapacity by using traditional underground storage in the rural areas.

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2.Subsidy of one third of the capital cost will be providedin north-eastern states, hilly areas and to women farmers. 3.The project will be implemented by the ministry of ruraldevelopment. Select the correct answer using the code given below. A) 1 only B) 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Consider the following statements: 1.Reinsurance is the process whereby insurance cover is provided to the insurancecompanies. 2.Foreign players are not allowed to setup reinsurance companies in India. 3.General Insurance CorporationGIC) of India is the only reinsurance company in the public sector. Which of the statements given above is/are correct? A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C The term 'Bad Bank', often seen in news, refers to a bank: A) Facing liquidity crisis as a result of bad loans. B) Dedicated towards financing the needs of badly performing sectors of the economy. C) That fails to meet its Cash Reserve Ratio CRR) obligations. D) That buys the bad loans from other banks to free up their books for fresh lending. Correct Answer: C The term 'teaser loans' refers to: A) Loans given to infrastructure sector with nominal 1% rate of interest. B) Loans with nominal rate of interest given to high net worth customers with zero liability. C) Loans with higher rate of interest in the initial period and lower in the later period. D) Loans with lower rate of interest in the initial period and higher in the later period.

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Correct Answer: A With reference to Multilateral Investment Guarantee Agency, consider the following statements: 1.It aims to promote foreigndirect investment into developing countries. 2.It is a member of world bank group. 3.It issued first rupee denominated masalabonds. Which of the statements given above is/are correct? A) 1, 2 and 3 B) 2 and 3 only C) 1 and 2 only D) 1 only Correct Answer: B Which of the following statements is/are correct with respect to District Central Co-operative Banks DCCB)? 1.They operateas the apex bank for all cooperative societies in the district. 2.They are regulated by both RBI and NABARD. Select thecorrect answer using the code given below. A) Neither 1 nor 2 B) Both 1 and 2 C) 2 only D) 1 only Correct Answer: C Recently launched web based application e-CHARAK is a platform: A) that serves as a knowledge repository for AYUSH doctors. B) to act as repository of technologies and market information related to cotton cultivation. C) that serves as a virtual market place for cottage industries. D) for information exchange between various stakeholders in the medicinal plants sector. Correct Answer: A The index for residential prices RESIDEX) is published by which of the following organisations? A)Niti Aayog B) National Housing Bank C) United Nations Habitat D) World Bank

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Correct Answer: C Consider the following statements with regard to Central Issue Price CIP) in India: 1.It is the price at which centralgovernment issues food grains to state governments and UTs. 2.It will be more than the economic cost of food grainsincurred by the Central Government. Which of the statements given above is/are correct? A) Both 1 and 2 B) Neither 1 nor 2 C) 2 only D) 1 only Correct Answer: A Which of the following are the correctreasons that support the need for phasing out of subsidies inagriculture? 1.Subsidies reduce the competitiveness in market. 2.Subsidies encourage wasteful use of energy. 3.Fertiliser subsidy has resulted inimpaired micronutrients in the soil at many places. Select the correct answer using the code givenbelow. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to the Negotiable Warehouse Receipts NWRs) in the context of agricultural market, consider the followingstatements: 1.They are documents issued by warehouses to depositors against thecommodities deposited in thewarehouses. 2.Farmers can seek loans from banks against NWRs issued by the registered warehouses. Which of thestatements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C

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Consider the following statements: 1.FDI proposals of above Rs.5000 crore of inflow is considered by the Foreign Investment Promotion Board. 2.Sectoral caps set by the government in various sectors apply to both direct and indirect foreigninvestments. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 and 2 Correct Answer: B With reference to Kisan Vikas Patra, consider the following statements: 1.It is a saving scheme to which only landlessfarmers can subscribe. 2.It is issued by the Ministry of Agriculture. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Which of the following statements regarding strategic disinvestment is/are correct? 1.It refers to dilution of shareholding of aloss making Central Public Sector unit only 2.It involves transfer of management control from government to private sector 3.Itis overlooked by Department of Investment and Public Asset Management Select the correct answer using the codesgiven above. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C Which of the following are the advantages of Cheque Truncation System? 1.Reduction in the additional cost of movement ofphysical cheques across banks. 2.Faster clearing of cheques. 3.No geographical restrictions on jurisdiction of banks. Selectthe correct answer using the codes given below. A) 1 only

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B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Withreferencetoeconomy,the term predatory pricing refers to: A) the pricing of goods or services at such a low level that other firms cannot compete and are forced to leave the market. B) the pricing of goods at high levels by a company exercising monopoly in the economy. C) the practice of subsidizing goods in the economy by the government reducing private sector participation. D) the pricing of goods and services at high levels during peak demand periods. Correct Answer: A With reference to the National Investment and Manufacturing Zones NIMZs), consider the following statements: 1.It aims toincrease the sectoral share of manufacturing in GDP to 25% by 2022. 2.It will be declared as an industrial township underArticle 243 of the constitution. 3.Andhra Pradesh is the first state to set India's first national investment and manufacturing zone. Which of the statements given above is/are correct? A) 2 and 3 only B) 1 and 3 only C) 1, 2 and 3 D) 1 only Correct Answer: D With reference to the International Bank for Reconstruction and Development IBRD), consider the following statements: 1.Itwas created to help rebuilding Europe after the World War II. 2.It is part of the World Bank Group. 3.It offers loans to bothdeveloped and developing countries. Which of the statements given above is/are correct? A) 1 and 2 only B) 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: A

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With reference to the National ScheduledCastes Finance and Development Corporation NSFDC), consider the followingstatements: 1.Its objective is to provide financial assistance to persons belonging to scheduled castes living below Doublethe Poverty Line limit. 2.It gives priority to women while disbursing loans and also has separate loan schemes for womenbelonging to scheduled caste. 3.It works under the Ministry of Social justice and Empowerment. Which of the statementsgiven above is/are correct? A) 1 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D Consider the following statements with respect to digital payment regulations in India : 1.Ratan Watal Committee hadrecently recommended for establishing a separate Payments Regulatory Board. 2.Currently digital payments are regulatedby the RBI. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C The World Bank recently decided to raise its global poverty line from $1.25 per day in Purchasing Power Parity or PPPterms) to $1.90. The World Bank estimates global poverty line by taking the average of A) the national poverty lines of 15 of the world’s poorest countries B) GNIPPP) of all the countries C) The national poverty lines of all the countries D) The GNIPPP) of 15 of the world's poorest countries Correct Answer: A A 45-year-old man having saving bankaccount in SBI is eligible for availing which of the following schemes? 1.PMJeevan Jyoti Yojana 2.PM Suraksha Bima Yojana 3.Atal Pension Yojana

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Select the correct answer using the code givenbelow. A) 1 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B Which among the following best describes 'Bank Run'? A) It is a situation when there is excessive liquidity in the banks. B) It is a condition when Nonperforming assets NPAs) of banks increased above the threshold limit. C) It refers to providing banking services on doorstep through mobile van. D) It is a situation when a large number of customers of a bank withdraw their deposits simultaneously. Correct Answer: D Consider the following about “spot markets” in India. 1. They are electronic financial markets where on spot deals for“futures” in commodities are fixed. 2. National Spot Exchange Limited (NSEL) is the only recognized spot market in India. 3.They are regulated by the Securities and Exchange Board of India (SEBI). Select the correct answer using the codes below. A) 1 and 3 only B) 3 only C) 1, 2 and 3 D) 1 and 2 only Correct Answer: C Consider the following about Unstructured Supplementary Service Data (USSD) that is being utilized by many corporationsin India for service delivery. 1. Use of USSD is limited due to its requirement of high-speed internet. 2. It can be used forserving the banking needs of customers. Which of the above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) None Correct Answer: B

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Non-performing Assets (NPAs) are loans made by a bank or finance company on which repayments or interest paymentsare not being made on time. How do high NPAs affect the citizens (customers) in India? 1. They may lead to an increase inthe cost of capital for borrowers. 2. They may lead to bank defaults and thus lower people’s confidence in the banking system affecting their savings ratio. Which of the above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) None Correct Answer: C Which of the following do not have an intrinsic value? 1.Fiat Money 2.Gold or Silver coin Which of the statement(s) givenabove is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A With reference to the “Price Deficiency Payment”, consider the following statements: 1.It is offered when the MinimumSupport Price is below the mandi price. 2.The mechanism entails paying the benefit directly to the affected farmers. Which ofthe statement(s) given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Match the following sets of pair. Concept Definitions 1. Deflation A. Reduction in the rate of inflation 2. Disinflation B. Generalfall in the level of prices 3. Stagflation C. Combination of inflation and rising unemployment

due to recession.

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4. Reflation D. Attempt to raise the prices to counteract the deflationary prices.

Select the correct answer using the codes given below. A) 1-A, 2-B, 3-C, 4-D B) 1-B, 2-A, 3-C, 4-D C) 1-B, 2-A, 3-D, 4-C D) 1-A, 2-B, 3-D, 4-C Correct Answer: B What is/are the reason(s) behind the ‘Twin Balance sheet problem’ in India? 1.Rising NPAs (Non-Performing Asset) for a Public-Sector Bank. 2.Corporate face huge strain on their cash position off late due to reasons like the global market’ssluggishness. Which of the statements given above is/are correct? A) 2 only B) Both 1 and 2 C) Neither 1 nor 2 D) 1 only Correct Answer: C The Reserve Bank of India often uses the method of sterilisation in order A) To neutralise the fresh money that enters the system. B) To eliminate unaccounted income C) To increase the price of government bonds D) To reduce Non-Performing Assets in commercial banks. Correct Answer: A The Financial Stability Report (FSR) is released by: A) Reserve Bank of India B) Ministry of Finance C) Ministry of Commerce and Industry (India) D) None of the above. Correct Answer: A In the context of Indian economy, the Reserve Bank of India is known as the lender of last resort, because: A) RBI extends loans to ensure the solvency of the commercial banks. B) RBI can resolve financial crisis in the country. C) RBI helps the government to reply external debt. D) RBI only can lend money to the government in crisis.

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Correct Answer: B With reference to the Indian Banking sector, which of the following activity/activities is/are carried out by both commercialbank and Non-Banking Financial Company (NBFC)? 1.Accepting demand deposits. 2.Issuing cheques drawn onitself. 3.Lending money. Select the correct answer using the codes given below: A) 2 and 3 only B) 3 only C) 1 only D) 1, 2 and 3 Correct Answer: B With reference to Indian Money Market and Capital Market, which of the following is incorrect? A) Collateral security is required to borrow from the money market while it is not required in the Capital Market. B) Money Market is informal while capital market is formal nature and structure. C) Risk factor is low in money market while risk factor is comparatively high in capital market. D) Money market increases liquidity of funds in the economy while the capital market mobilizes savings in the economy. Correct Answer: A The price of any currency in international market is decided by the 1.Demand for goods/services provided by the countryconcerned. 2.Stability of the government of the concerned country. 3.World Bank 4.Economic potential of the country inquestion. Select the correct answer using the codes given below: A) 1, 2 and 3 only B) 3 and 4 only C) 1 and 2 only D) 1, 2, 3 and 4 Correct Answer: C Which of the following is the characteristic of ‘Round Tripping’?

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A) It is an arrangement where a property is transferred to a person located overseas without compliance with tax regime. B) It is a practice whereby a company deliberately incorporates a business unit in a tax haven to reinvest in the parent country. C) When a property which has purchased in the name of some person other than the person who has financed it and subsequently transfer to a third person. D) None of the above. Correct Answer: B Which one of the following groups of items is included in India’s foreign exchange reserves? A) Foreign currency assets, gold holdings of the RBI and loans from the World Bank. B) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries. C) Foreign-currency assets, loans from the World Bank and SDRs. D) Foreign-currency assets, gold holdings of the RBI and SDRs. Correct Answer: D With reference to the Minimum Alternative Tax (MAT), consider the following statements: 1.It is calculated on the profitshown in the Profit and Loss Account of the company. 2.It aims to make those companies pay at least some tax which werepaying little or no tax. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to the Security Market, consider the following statements: 1.The primary market is the place where thepurchasers buy the shares from other shareholders instead of the company themselves. 2.The secondary market is the placewhere the new public offers are launched by the companies. 3.Under writing groups such as the investment banks function inthe primary market.

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Which of the statements given above is/are correct? A) 2 and 3 only B) 1 only C) 1 and 3 only D) 3 only Correct Answer: D General Anti-Avoidance Rules (GAAR) are meant for A) Extending tax deduction at source (TDS) system to all private sector employees to check avoidance. B) Denying tax benefits to a business entity if it carries out a transaction exclusively for avoiding tax. C) Make avoidance of corporation tax by business entities a criminal offence. D) Reducing circulation of black money on which tax can be avoided. Correct Answer: B With reference to the currency market, the term “Convertibility” is used to denote 1.Freedom to exchange currencies likecommodities across the counter. 2.Freedom to invest globally. 3.Freedom to residents to remit outside the country. Select thecorrect answer using the codes given below. A) 1 only B) 1 and 3 only C) 3 only D) 1, 2 and 3 Correct Answer: D With reference to the Prime Lending Rate (PLR), which of the following is correct? A) PLR is the rate at which bank lends to the industries. B) PLR is the rate at which banks lends to the farmers. C) PLR is the rate at which banks lends to the governments. D) PLR is the rate at which banks lends to the best customers. Correct Answer: D Which of the following statements with reference to "Liquidity Trap" is/are incorrect? 1.When injections of cash into theprivate banking system by a central bank fail to increase interest rates

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2.When fluctuations in the money supply that fail totranslate into fluctuations in price levels. Select the correct answer using the code given below: A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A What is Incremental Capital Output Ratio (ICOR)? A) It is the ratio of a bank's capital to its risk. B) It helps to calculate the risk, which might be availed by an entrepreneur. C) None of the above D) It is the additional amount of capital required to produce unit additional product. Correct Answer: A Consider the following statements: 1.Statutory liquidity Ratio is determined by RBI, maintained by banks itself in order to control the expansion of bank credit. 2.Cash Reserve Ratio is determined and maintained by RBI, in order to control over to bank credit. Which of the statement(s) given above is/are correct? A) 1only B) 2 only C) Both 1and 2 D) Neither 1 nor 2 Correct Answer: C Consider the following statements regarding the Liquidity Adjustment facility (LAF): 1.It was introduced by RBI and allSchedule Commercial Banks are eligible to bid. 2.Funds under LAF are used by the banks for their day to day mismatches inthe liquidity. 3.LAF covers credit at repo, reverse repo and MSF rate. Which of the above statement(s) is/are correct? A) 1 and 3 only B) 2 only C) 2 and 3 only D) 1, 2 and 3

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Correct Answer: B Measure of Money supply-M1, includes 1.Currency with public 2.Demand deposit in all banks (e.g. current account, savingsaccount) 3.Other deposits with RBI 4.India’s deposits with IMF, World bank, Foreign Government etc. 5.Inter bank deposits Which of the statements given above is/are correct? A) 1, 2 and 3 only B) 1 and 2 only C) 3, 4 and 5 only D) 1, 2, 3, 4 and 5 Correct Answer: A Recently India and Switzerland have signed a Joint Declaration for implementation of Automatic Exchange of Information(AEOI) in respect of accounts of Indians held abroad. With reference to the Multilateral Automatic Exchange of FinancialAccount Information, consider the following statements: 1.This pact is based on the Basel agreement. 2.It aims to helpmember countries to curb tax evasions and deal with the problem of black money. 3.It obliges signatories to exchange a widerange of financial information among themselves periodically. Select the correct answer using the code given below. A) 1 and 3 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: C The RBI implements monetary policy through which of the following instruments? 1.Bank rate manipulation 2.Open MarketOperation 3.Reserve requirement changes 4.Moral suasion Select the correct answer using the code given below. A) 1, 2 and 3 only B) 1, 2 and 4 only C) 2 and 3

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D) 1, 2, 3 and 4 Correct Answer: D Total liability of the monetary authority of the country is referred to as A) Narrow Money B) Broad Money C) High Powered Money D) Dear Currency Correct Answer: C Under Section 10(26) of the Income Tax Act, which of the following category of people are exempted from income tax? A) Members of the Scheduled Tribes and the Scheduled Castes in Special Category States B) Members from the Economically Backward Class in All States C) Members of the Scheduled Tribes in States of Manipur, Mizoram, Nagaland and Tripura D) Members of the Scheduled Tribes in Chhattisgarh Correct Answer: D Consider the following statements about the Ad Valorem Tax: 1.It is a direct tax imposed on the value of commodity. 2.Both GST and VAT are examples of Ad Valorem Tax. Select the correct statement using the codes given below: A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B The concept of Universal Banking implies A) Providing banking facilities to all people B) Enabling basic banking services in rural areas C) Merging banks to create large banks with universal presence D) Providing all banking products under one roof Correct Answer: D With reference to taxation in India, consider the following statements 1.A tax is collected for utilization for a specific purpose whereas a cess is collected for a generic purpose.

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2.A tax is collected for a generic purpose, while a cess is collected for aspecific propose 3.Unlike taxes, cess is not a part of the divisible pool that is shared with the state governments. 4.Collections from a cess are usually kept outside the Consolidated fund of India whereas all taxes go into the Consolidated fund ofIndia. Select the correct statement(s) using the codes given below: A) 2 only B) 2 and 3 only C) 1, 3 and 4 D) 2, 3 and 4 Correct Answer: D With reference to the concept of Non-Performing Asset (NPA)s in India, which of the following statements is incorrect? A) An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank. B) The instalment of principal or interest there on remains overdue for one crop season for long duration crops. C) Any amount due to the bank, under any credit facility, if not paid on the due date fixed by the bank is termed NPA. D) Banks can technically declare a loan as NPA which remains overdrew for 90 days or more. Correct Answer: D With reference to the Foreign Currency Convertible Bonds (FCCBs), consider the following statements: 1.These areconvertible debentures. 2.These are issued through foreign institutional investors (FII)s. Select the correct answer using thecodes given below: A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A What is debt trap? A) A situation when an economy borrows money to repay past borrowings. B) A situation when an economy is borrowing more than it’s repaying of its past borrowing.

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C) A situation when an economy is borrowing to repay even the interest of its past borrowings. D) None of the above Correct Answer: C Which of the following is not a money market instrument? A) Treasury bill B) Certificate of deposits C) Commercial bill D) Government securities (G-Sec) Correct Answer: D With reference to Small banks in India, consider the following statements: 1.Small bank can lend to big corporate. 2.It cannotset up subsidiaries to undertake non-banking financial services activities. 3.It can be a Business Correspondent (BC) of anybank. Which of the above statement(s) is/are correct? A) 2 and 3 only B) 2 only C) 1 and 2 only D) 1, 2 and 3 Correct Answer: B Which of the following policies aims to reduce the Current Account Deficit (CAD)? 1.Reducing import duties 2.Currency devaluation 3.Providing export subsidies 4.Tightening of fiscal and monetary policy Select the correct answer using the codesgiven below. A) 1 and 4 only B) 2 and 3 only C) 1, 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: B The term “Shadow Banking” refers to A) Banking facilities mainly aimed to provide financial inclusion. B) Opening new branches in un-banked areas.

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C) Banking organizations that function like bank but outside the banking regulations. D) Providing banking facilities to persons serving in the armed forces. Correct Answer: C For a Giffen good A) Income effect is positive and substitution effect is negative B) Income effect is negative and substitution effect is positive C) Income effect and substitution effect both are positive D) Income effect and substitution effect both are negative Correct Answer: A With reference to `Green Masala Bonds’, sometimes seen in the news, which of the following feature(s) distinguish them from usual Masala Bonds? 1.It is allowed to be denominated in the currency of the country where they are issued. 2.It can also be issued to the customers in domestic country. Select the correct answer using the codes given below: A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: D Which among the following are the transactions under the current account of Balance of Payments(BoP)? 1.Goods 2.Services 3.Assets Select the correct answer using the codes given below. A) 1,2 and 3 B) 3 only C) 1 and 2 only D) 1 only Correct Answer: D With reference to the functions of RBI, which of the following is/are correct? 1.It acts as a banker to the commercialbanks. 2.It acts as a banker to the government of India. 3.It is responsible for the issue of thecurrency notes and the coins inthe economy.

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4.It helps in sterilisation of economy against the external shocks. 5.It is the controller ofcredit supply in aneconomy. Select the correct answer using the codes given below. A) 1,4 and 5 only B) 1,3,4 and 5 only C) 1,2,4 and 5 only D) 1, 2, 3, 4 and 5 Correct Answer: C Consider the following statements regarding the currency notes and coins issued in India. 1.They are a 'legal tender' i.e. theycannot be refused by any citizen of the country for settling any transaction. 2.They are a 'fiat currency' i.e. they derive theirvalue from the guarantee provided on them by the issuing authority and have no intrinsic value. Which of the abovestatement(s) is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C With reference to the Investment Funds, consider the following statements. 1.National Investment Fund (NIF) receivesdisinvestment proceeds of central Public Sector Enterprises (PSE) 2.Earning of NIF Will be used for central and state socialwelfare schemes 3.National Investment and Infrastructure Fund (NIIF) enhance the infrastructure development solely inbrownfield projects. 4.NIIF invest in the corpus created by Asset Management Companies (AMC) Which of the statement(s) given above is/are correct? A) 1 and 4 only B) 2, 3 and 4 only C) 1 and 3 only D) 1, 2, 3 and 4 Correct Answer: A Consider the following statements regarding the differences between Equity shares and preference shares 1.Generally,Equity shares carry voting rights whereas preference shares do not carry any voting rights.

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2.Rate of dividend, is fixed forequity shares whereas it varies according to the profit for preference shares. Which of the above statement(s)is/are correct? A) Both 1 and 2 B) Neither 1 nor 2 C) 1 only D) 2 only Correct Answer: A Which of the following is/are measures to address the deficit in Balance of Trade (BoT) of India? 1.Licensing imports 2.Income Tax concessions given to exporters 3.Setting up of export processing zones 4.Devaluation of rupee Selectthe correct answer using the code given below. A) 1, 3 and 4 only B) 3 and 4 only C) 1 and 2 only D) 1, 2, 3 and 4 Correct Answer: D Which of the following can be held true if a government incurs a revenue deficit? 1.It means that the government is low onsavings. 2.Government may have to borrow not only for investment but also for its committed consumptionexpenditure. 3.The government may have to reduce its capital expenditure/welfare expenditure. Select the correct answer using the codes given below. A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: D With reference to ‘deficit financing’ by the government, consider the following statements. 1.It can be done by external aids,grants, borrowings and printing money. 2.Deficit financing would result in decrease of public debt Which of the following statements is/are correct?

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A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: A Reserve Bank of India decides the SLR rate. However, most banks currently maintain a higher SLR rate than requiredbecause A) Lack of credible lending options B) To make higher profit on interest rate C) To control the inflation in the Indian Market D) Incomplete KYC norms of most of the Account holders Correct Answer: A In case of Rupee depreciation what can happen to corporate borrowings of an Indian firm in foreign currency? 1.The debtservice liability will decrease. 2.The volume of debt would fall in local currency. 3.If the borrower participates in export market,it can create a natural hedge againstdepreciation. Select the correct answer using the code given below. A) 1 and 2 only B) 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: B The inflationary impact of the inflow of foreign capital in India is neutralized by the Reserve Bank of India by which one of thefollowing methods? A) Permitting outflow of foreign exchange B) Sale of securities in the open market C) Facilitating imports of essential commodities D) Permitting depreciation of Indian rupee in the foreign exchange market Correct Answer: B Which of the following shadow bank(s) is/are regulated under the SEBI? 1.Merchant banking companies 2.Venture capitalfund companies 3.Insurance companies 4.Nidhi Companies 5.Chit funds

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Select the correct answer using the codes givenbelow: A) 1 and 2 only B) 1, 2 and 4 only C) 2 and 5 only D) 1, 2, 3, 4 and 5 Correct Answer: A With reference to the Marginal Standing Facility (MSF), consider the following statements. 1.It is a penal rate and is fixedabove the repo rate 2.It is last resort for the bank once they exhaust all borrowing options 3.Liquidity Adjustment Facility(LAF) has lower rate of interest in comparison with the MSF 4.Its purpose is to reduce volatility in the overnight lending ratesin the interbank market Which of the following statements is/are correct? A) 1, 2 and 3 only B) 1 and 4 only C) 2, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D With reference to ‘Sovereign Credit Rating' given by various credit rating agencies, consider the followingstatements: 1.Better sovereign ratings can make it cheaper to borrow money when needed. 2.Economic factors alone areconsidered for preparing sovereign credit rating. 3.More economically-developed countries are less likely to default hence,they will get a good sovereign credit rating. Which of the statements given above is/are correct? A) 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C The revenue expenditure in Indian economy will include 1.Interest Payment on debt incurred by government 2.Defence services 3.Subsidies 4.Loans made to state governments

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5.Grants given to state governments Select the correct answer usingthe code given below A) 1, 2 and 3 only B) 4 and 5 only C) 1, 2, 3 and 5 only D) 1, 2, 4 and 5 only Correct Answer: C Which of the following is/are the investment limit(s) imposed by SEBI on FII? 1.They cannot buy treasury bills 2.They can holdmaximum 10% share in an Indian company 3.They cannot become boardof director in any Indian commodityexchange Select the correct answer using the code given below A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2 and 3 Correct Answer: D Which of the following statement(s) correctly differentiates Hedge Fund and Mutual Fund? 1.Hedge funds can make moneyeven with share market going down, mutual fund cannot. 2.Hedge Funds are riskier than Mutual Fund. 3.Hedge Funds canissue P-notes by themselves while Mutual funds cannot. Select the correct answer using the code given below A) 1 and 3 only B) 2 and 3 only C) 1, 2 and 3 D) 1 and 2 only Correct Answer: A Convertibility of rupee means freely permitting the conversion of rupee to other currencies and vice versa. The advantage(s)of convertibility of Rupee is/are 1. Encouragement to exports 2.Incentive to send remittances from abroad 3.Encouragement toimport Select the correct answer using the code given below. A) 1 and 3 only B) 3 only

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C) 1 and 2 only D) 1, 2 and 3 Correct Answer: D Consider the following liquid assets: 1.Demand deposits with the banks 2.Time deposits with the banks 3.Currency The correctsequence of their decreasing order of liquidity is A) 2 – 3 – 1 B) 3 – 2 – 1 C) 1 – 3 – 2 D) 3 – 1 – 2 Correct Answer: D Which of the following statements is/are true about The India Aspiration fund? 1.It has been set up under Mudra Bank 2.The fund will be used for venture capital financing in the MSME sector. Select the correct statement using the codes given below A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Alternative Investment Fund (AIF) includes, 1.Angel investment 2.Venture capital fund 3.Hedge fund 4.Foreign Portfolioinvestment Select the correct answer using the code given below A) 1 and 2 only B) 1, 3 and 4 only C) 1, 2 and 3 only D) 1, 2, 3 and 4 Correct Answer: C Consider the following statements regarding the Non-Performing Asset: 1.interest and/or instalment of principal remainoverdue for a period of more than 90 days in respect of Term Loan.

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2.the instalment of principal or interest thereon remainsoverdue for two crop seasons for long duration crops. 3.the bill remain overdue for a period of more than 90 days in the caseof bills purchased and discounted. Which of the above statements is/are correct? A) 1 only B) 1 and 2 only C) 1 and 3 only D) 1, 2 and 3 Correct Answer: C With reference to the Pension Fund Regulatory & Development Authority (PFRDA), consider the following statements: 1.It aims to organize pension system to serve the old age income needs of people on a sustainable basis. 2.It does not deal withthe concerns related to pensions of Armed Forces. Which of the statements given above is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: C What are the components of 'Monetary base' of the RBI? 1.Currency in circulation with the public. 2.Vault cash of thecommercial banks. 3.Deposits of the commercial banks with RBI. 4.Deposits of the government with the RBI. Select thecorrect answer using the codes given below. A) 1 and 2 only B) 1 and 3 only C) 2, 3 and 4 only D) 1, 2, 3 and 4 Correct Answer: D With reference to supply of money, consider the following statements. 1.M1 is easiest for transactions. 2.M3 is known asaggregate monetary resource. 3.Inter bank deposits doesn’t form a part of money supply. Which of the above statement(s) is/are correct?

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A) 1, 2 and 3 B) 1 and 2 only C) 2 and 3 only D) 2 only. Correct Answer: A With reference to the Insurance Regulatory Development Authority of India (IRDA), which of the following statement(s) is/arecorrect? 1.They are concerned with regulation and promotion of insurance and reinsurance industries in India 2.They providea host of insurance policies to the general public. Select the correct answer using the code given below A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Correct Answer: B Which of the following committee has submitted report on promoting digital payments to the Union Government? A) Vinod Rai committee B) RatanWatal committee C) Deepak Mohanthy committee D) Rangarajan Committee Correct Answer: B