Economics GK Quiz-19

1. On the administered price of
which of the following articles no
subsidy is given ?
(1) DAP (2) ATF
(3) LPG (4) Kerosene oil
Answer:
1. (2) In India, no subsidy is given to Aviation Turbine
Fuel (ATF). Indian Oil Aviation Service is a leading
aviation fuel solution provider in India and the mostpreferred supplier of jet fuel to major international
and domestic airlines. Jet fuel is a colorless, combustible, straight-run petroleum distillate liquid. The
highly punitive fiscal regime in India is the primary
problem for the aviation sector. The cost of Aviation
Turbine Fuel in India is almost 60% higher than international benchmarks. Combined with a high base
price, fuel now represents 45-55% of a carrier’s operating costs.


(SSC Section Officer (Audit)
Exam. year 1997)
2. Which among the following has
the least possibility of globalisation ?
(1) selection of labour force
(2) location of capital works
(3) to manage resources for investment
(4) increase in infrastructure
Answer:
2. (2) Globalization can affect the labor market by
increasing capacity of developing countries to create
new opportunities for work and production following
the alleviation of price distortions with respect to both
labor and capital. Globalization on business
management is interconnection of international
markets and managing businesses in a global
industry. This includes management of resources for
foreign investments whereby a company expands its
business and invests in foreign countries.
Globalization means inter-linkage among the countries
of the globe. This can only happen when
infrastructure is in proper shape. A well-developed
infrastructure is an indispensable condition for faster
globalization.


(SSC Section Officer (Audit)
Exam. year 1997)
3. Agricultural Technology is hard
to spread because :
(1) it has to be adopted to local
conditions.
(2) rural people are not receptive
(3) farmers are afraid to experiment on land for fear of failure.
(4) all of the above.
Answer:
3. (4) There are many benefits of using technology in
agriculture system, but there are also negative
aspects. Technology transfer is most difficult in
agriculture because of the differences in natural
conditions, such as weather, geographical features,
plant ecology, and irrigation, which overlap social and
institutional restrictions. When an agricultural
technology is stable as a result of the limitations
imposed by the existing national conditions and social
system, the limits of production are empirically
foreseeable.


(SSC Combined Graduate Level
Prelim Exam. 04.07.1999
(Second Sitting)
4. Structural unemployment arises
due to :
(1) deflationary conditions
(2) heavy industry bias
(3) shortage of raw materials
(4) inadequate productive capacity
Answer:
4. (4) Structural unemployment is a form of
unemployment resulting from a mismatch between
demand in the labour market and the skills and
locations of the workers seeking employment.
Structural unemployment is a result of the dynamics
of the labor market, such as agricultural workers
being displaced by mechanized agriculture, unskilled
laborers displaced by both mechanization and
automation, or industries with declining employment.
Many of these displaced workers are “left behind”
due to costs of training and moving (e.g., the cost of
selling one’s house in a depressed local economy),
inefficiencies in the labor markets, such as
discrimination or monopoly power, or because they
are unsuited for work in growing sectors such as
health care or high technology.


(SSC Combined Graduate Level
Prelim Exam. 27.02.2000
(Second Sitting)
5. What is “book-building” ?
(1) Preparing the income and
expenditure ledgers of a
company (book-keeping)
(2) Manipulating the profit and
loss statements of a company
(3) A process of inviting subscriptions to a public offer
of securities, essentially
through a tendering process
(4) Publishers’ activity
Answer:
5. (3) Book building refers to the process of generating,
capturing, and recording investor demand for shares
during an IPO (or other securities during their
issuance process) in order to support efficient price
discovery. Usually, the issuer appoints a major
investment bank to act as a major securities
underwriter or bookrunner. The “book” is the offmarket collation of investor demand by the
bookrunner and is confidential to the bookrunner,
issuer, and underwriter. Book-building is a process
of price discovery used in public offers. The issuer
sets a base price and a band within which the investor
is allowed to bid for shares.


(SSC Section Officer (Commercial
Audit) Exam. 16.11.2003)
6. Which natioalised bank of India has a shining star as its
emblem?
(1) Syndicate Bank
(2) Indian Bank
(3) Bank of India
(4) Bank of Baroda
Answer:
6. (3) The new logo of the Bank of Baroda is a unique
representation of a universal symbol. It comprises
dual ‘B’ letterforms that hold the rays of the rising
sun. It is known as the ‘Baroda Sun’ which is the
single most powerful source of light and energy – its
far reaching rays dispel darkness to illuminate
everything they touch. With this logo, Bank of Baroda
seeks to be the source that will help all its
stakeholders realise their goals. To customers, the
bank seeks to be a one-stop, reliable partner who
will help them address different financial needs. To
employees, the bank offers rewarding careers and
to our investors and business partners, maximum
return on their investment.


(SSC Section Officer (Commercial
Audit) Exam. 16.11.2003)ECONOMICS
SGAE–593
7. Which one of the following taxes is collected and utilized by
the State Governments ?
(1) Personal income tax
(2) Corporation tax
(3) Land revenue
(4) Custom duties
Answer:
7. (3) The Constitution allocates the taxation of
agricultural income to states. Lan revenue is a major
source of revenue for states in India. For purpose of
revenue management, a State is divided into various
districts, each in the charge of a Deputy
Commissioner, also known as Collector indicating his
responsibility for the realization of all Government
revenues.


(SSC CPO Sub-Inspector
Exam. 05.09.2004)
8. Which amidst the following is
not a credit rating agency ?
(1) CRISIL (2) CARE
(3) ICRA (4) IFCI
Answer:
8. (4) A credit rating agency (CRA) is a company that
assigns credit ratings for issuers of certain types of
debt obligations as well as the debt instruments
themselves. In some cases, the servicers of the
underlying debt are also given ratings. CRISIL is the
most influential and largest credit rating agency among
all the credit rating agencies in India. ICRA Limited
(ICRA) is one of India’s premier financial information
services company. It offers credit rating information
and professional financial consulting services across
India, as well as in the Asia-Pacific region through its
subsidiaries. CARE Ratings commenced operations
in April 1993 and over nearly two decades, it has
established itself as the second-largest credit rating
agency in India. The government established The
Industrial Finance Corporation of India (IFCI) on July
1, 1948, as the first Development Financial Institution
in the country to cater to the long-term finance needs
of the industrial sector.


(SSC Tax Assistant (Income Tax &
Central Excise) Exam. 05.12.2004)
9. NIFTY is associated with
(1) Cloth Market Price Index
(2) Consumer Price Index
(3) BSE Index
(4) NSE Index
Answer:
9. (4) The NSE’s key index is the S&P CNX Nifty, known
as the NSE NIFTY (National Stock Exchange Fifty),
an index of fifty major stocks weighted by market
capitalization. Nifty Fifty was an informal term used
to refer to 50 popular large cap stocks on the New
York Stock Exchange in the 1960s and 1970s that
were widely regarded as solid buy and hold growth
stocks. NIFTY means National Index for Fifty.


(SSC Tax Assistant (Income Tax &
Central Excise) Exam.11.12.2005)
10. The data collection for national
income estimation is conducted in India by—
(1) The Finance Ministry of the
Government of India
(2) The RBI
(3) The NSSO (National Sample
Survey Organi-sation)
(4) None of these
Answer:
10. (3) The National Sample Survey Office(NSSO) in India
is a unique setup to carry out surveys on socioeconomic, demographic, agricultural and industrial
subjects for collecting data from households and from
enterprises located in villages and in the towns. It is
a focal agency of the Government of India for
collection of statistical data in the areas which are
vital for developmental planning.


(SSC Statistical Investigators
Grade–IV Exam. 13.08.2006)
11. Scheduled Banks have to be
registered with
(1) SEBI (2) RBI
(3) Finance Ministry
(4) SBI
Answer:
11. (2) The scheduled primary (urban) cooperative banks
are required to maintain with the Reserve Bank of
India an average daily balance, the amount of which
should not be less than 5 per cent of their net demand
and time liabilities in India in terms of Section 42 of
the Reserve Bank of India Act, 1934. Non-scheduled
(urban) cooperative banks, under the provision of
Section 18 of Banking Regulation Act, 1949 (As
Applicable to Cooperative Societies) should maintain a
sum equivalent to at least 3 per cent of their total
demand and time liabilities in India on day-to-day basis.


(SSC CPO Sub-Inspector
Exam. 03.09.2006)
12. Which organisation collects data
for the unorganised sector ?
(1) NSSO (2) CSO
(3) ASI (4) RBI
Answer:
12. (1) The National Sample Survey Office(NSSO) in India
is a unique setup to carry out surveys on socioeconomic, demographic, agricultural and industrial
subjects for collecting data from households and from
enterprises located in villages and in the towns. The
unregistered manufacturing sub-sector, a complement
set to the registered manufacturing sub-sector, covers
all the residual units which are not covered under
the registered manufacturing sector. Thus, the
unregistered manufacturing sector covers all the
manufacturing, processing, repair & maintenance
services units employing less than 10 workers and
using power or less than 20 workers and not using
power. The data on unorganised sector is collected
through periodic surveys by the NSSO.


(SSC CPO Sub-Inspector
Exam. 03.09.2006)
13. The definition of ‘small-scale
industry’ in India is based on
(1) sales by the unit
(2) investment in machines and
equipments
(3) market coverage
(4) export capacity
Answer:
13. (2) Generally, small-scale sector is defined in terms
of investment ceilings on the original value of the
installed plant and machinery. As per the Ministry of
Micro, Small & Medium Enterprises of India, a small
scale industry is an industrial undertaking in which
the investment in fixed assets in plant and machineryECONOMICS
SGAE–646
whether held on ownership terms on lease or on hire
purchase does not exceed Rs 10 million. Fixed capital
investment in a unit has been adopted as criteria to
make a distinction between small-scale and largescale industries. This limit is being continuously
raised up wards by government.


(SSC Tax Assistant (Income Tax &
Central Excise) Exam. 25.11.2007)
14. ‘NABARD’ is associated with the
development of
(1) agricultural sector and rural areas
(2) heavy industries
(3) banking sector
(4) real estates
Answer:
14. (1) National Bank for Agriculture and Rural
Development (NABARD) has been accredited with
“matters concerning policy, planning and operations
in the field of credit for agriculture and other
economic activities in rural areas in India”. It serves
as an apex financing agency for the institutions providing
investment and production credit for promoting the
various developmental activities in rural areas.


(SSC Tax Assistant (Income Tax &
Central Excise) Exam. 25.11.2007)
15. Government takes ‘ways and
means advances’ from
(1) RBI (2) IDBI
(3) SBI (4) ICICI
Answer:
15. (1) Ways and means advances (WMA) is a mechanism
used by Reserve Bank of India (RBI) under its credit
policy by which provides to the States banking with
it to help them to tide over temporary mismatches in
the cash flow of their receipts and payments. These
are temporary advances (overdrafts) extended by RBI
to the government. Section 17(5) of RBI Act allows
RBI to make WMA both to the Central and State
governments. It aims to bridge the interval between
expenditure and receipts.


(SSC CPO Sub-Inspector
Exam. 16.12.2007)
16. Kisan Credit Card scheme was
introduced in
(1) 1991 (2) 1996
(3) 1998 (4) 2000
Answer:
16. (3) Kisan Credit Card Scheme (KCC) aims at providing
adequate and timely support from the banking system
to the farmers for their short-term credit needs for
cultivation of crops. This mainly helps farmer for
purchase of inputs etc., during the cropping season.
Credit card scheme proposed to introduce flexibility
to the system and improve cost efficiency. It was
introduced in August 1998.


(SSC CPO Sub-Inspector
Exam. 16.12.2007)
17. Compared to the rich the poor
save
(1) A larger part of their income
(2) An equal part of their income
(3) A smaller part of their income
(4) All of their incomes
Answer:
17. (3) A “subsistence” or necessary level of consumption
produces differences in consumption growth rates
across income levels. This implies that poor
households have lower saving rates because they
cannot “afford to save” after buying the necessities.
Institutional and behavioral mechanism also leads to
low levels of saving among the poor.


(SSC CPO Sub-Inspector
Exam. 16.12.2007)
18. One of the main factors that led
to rapid expansion of Indian
exports is
(1) Imposition of import duties
(2) Liberalisation of the economy
(3) Recession in other countries
(4) Diversification of exports
Answer:
18. (4) India has rapidly diversified its exports markets
from the traditional export partners towards emerging
and developing economies. This has played a crucial
role in cushioning India’s exports growth during the
recent years, which has remained fairly steady despite
global economic slowdown. The rapid diversification
of India’s export destinations is encouraging. The
widely spreading export markets can be noted from
the narrowing dependence on selected economies for
exports.


(SSC CPO Sub-Inspector
Exam. 16.12.2007)
19. The gradation and standardisation of agricultural products
are conducted through
(1) Food Corporation of India
(2) Directorate of Marketing
and Inspection
(3) Indian Standards Institution
(4) Central Statistical Organisation
Answer:
19. (2) The Directorate of Marketing and Inspection (DMI)
is an attached Office of the Ministry of Agriculture.
It was set up in the year 1935 to implement the
agricultural marketing policies and programmes of
the Central Government. It aims at bringing integrated
development of marketing of agricultural and allied
produce in the country. It is entrusted with promotion
of standardisation and grading of agricultural and
allied produce.


(SSC CPO Sub-Inspector
Exam. 16.12.2007)
20. According to the Employment
Outlook 2007 reports of the
Organisation for Economic Cooperation and Develop-ment
(OECD), the number of new
jobs created in India every year
from 2000 to 2005 is
(1) 5 million (2) 8 million
(3) 11 million (4) 13 million
Answer:
20. (3) Over the period 2000-05, India generated 11.3
million net new jobs per year, on average. The figure
was 7 million in China, 2.7 million in Brazil and 0.7
million jobs in the Russian Federation, compared with
an average of 3.7 million net new jobs generated in
the OECD area as a whole each year over the same
period.


(SSC Section Officer (Audit)
Exam. 06.01.2008)
21. Which of the following items is
a major item of Indian export?
(1) Computer chips
(2) Potato chips
(3) Textile garments
(4) Car engines
Answer:
21. (4) India exports were worth 23698 Million USD in
September of 2012. Historically, from 1994 until
2012, India Exports averaged 8603.18 Million USD
reaching an all time high of 30418.00 Million USD in
March of 2011 and a record low of 1805.00 Million
USD in May of 1994. Exports amount to 22% of
India’s GDP. Gems and jewelry constitute the single
largest export item, accounting for 16 percent of
exports. India is also leading exporter of textile goods,
engineering goods, chemicals, leather manufactures
and services. India’s main export partners are
European Union, United States, United Arab
Emirates and China.


(SSC Section Officer (Audit)
Exam. 06.01.2008)
22. Indian agriculture is typically
characterised as
(1) land surplus, labour scarce
economy
(2) land surplus, labour surplus
economy
(3) land scarce, labour surplus
economy
(4) land scarce, labour scarce
economy
Answer:
22. (3) The labor surplus economy model has as its basic
premise the inability of unskilled agricultural labor
markets to clear in countries with high man/land
ratios. In such situations, the marginal product of
labor is likely to fall below a bargaining wage, related
to the average rather than the marginal product. Most
of the East Asian economies such as Japan, South
Korea, and Taiwan are similar to India in being land
scarce and labor surplus.


(SSC Section Officer (Audit)
Exam. 06.01.2008)
23. Open market operations of RBI
refer to buying and selling of
(1) Commercial bills
(2) Foreign exchange
(3) Gold
(4) Government bonds
Answer:
23. (4) OMOs are the market operations conducted by
the Reserve Bank of India by way of sale/ purchase
of Government securities to/ from the market with
an objective to adjust the rupee liquidity conditions
in the market on a durable basis. When the RBI feels
there is excess liquidity in the market, it resorts to
sale of securities thereby sucking out the rupee
liquidity. Similarly, when the liquidity conditions are
tight, the RBI will buy securities from the market,
thereby releasing liquidity into the market.


(SSC Section Officer (Audit)
Exam. 30.11.2008)
24. A situation where we have people whose level of income is not
sufficient to meet the minimum
consumption expenditure is
considered as
(1) Absolute Poverty
(2) Relative Poverty
(3) Urban Poverty
(4) Rural Poverty
Answer:
24. (1) Absolute poverty is defined as a situation in which
the individual’s basic needs are not covered, in other
words, there is a lack of basic goods and services
(normally related to food, housing and clothes). This
concept of poverty is strongly linked to destitution
which is an inability to meet the minimum consumption
expenditure. It is a level of poverty as defined in
terms of the minimal requirements necessary to afford
minimal standards of food, clothing, health care and
shelter. According to a UN declaration that resulted
from the World Summit on Social Development in
Copenhagen in 1995, absolute poverty is “a condition
characterised by severe deprivation of basic human
needs, including food, safe drinking water, sanitation
facilities, health, shelter, education and information.
It depends not only on income but also on access to
services.”


(SSC Tax Assistant (Income Tax &
Central Excise) Exam. 29.03.2009)
25. Nature of unemployment in agriculture in India is
(1) only seasonal
(2) only disguised
(3) Both (1) and (2)
(4) None of the above
Answer:
25. (3) Seasonal employment refers to a situation where
a number of persons are not able to find jobs during
some months of the year. Example: Agriculture is a
seasonal activity. There is an increased demand for
labour at the time of sowing, harvesting, weeding
and threshing. In between there is little or no demand
for labour. Besides, disguised unemployment is also
seen in agriculture in India.


(SSC Tax Assistant (Income Tax &
Central Excise) Exam. 29.03.2009)ECONOMICS
SGAE–594
26. The monetary policy is India is
formulated by
(1) Central Government
(2) Industrial Financial Corporation of India
(3) Reserve Bank of India
(4) Industrial Development
Bank of India
Answer:
26. (3) Monetary policy is the process by which monetary
authority of a country, generally a central bank
controls the supply of money in the economy by
exercising its control over interest rates in order to
maintain price stability and achieve high economic
growth. In India, the central monetary authority is
the Reserve Bank of India (RBI). is so designed as to
maintain the price stability in the economy.


(SSC Combined Graduate Level
Tier-I Exam. 16.05.2010
(First Sitting)
27. At present, India is following
(1) Fixed exchange rate
(2) Floating exchange rate
(3) Pegged up exchange rate
(4) Pegged down exchange rate
Answer:
27. (2) Exchange rate can be defined as the value of one
currency in terms of another. India follows floating
exchange rate system for the determination of the
exchange rate. Floating exchange rate system can be
defined as a system where the exchange rate between
currencies are not fixed but they keep fluctuating,
as they are determined by the demand and supply
for the domestic currency in the international market.
India has been operating on a managed floating
exchange rate regime from March 1993, marking the
start of an era of a market determined exchange rate
regime of the rupee with provision for timely
intervention by the central bank.


(SSC Combined Graduate Level
Tier-I Exam. 16.05.2010
(First Sitting)
28. Which of the following taxes are
levied and collected by the centre but their net proceeds are
wholly transferred to states ?
(1) Expenditure Tax and Gift
Tax
(2) Additional Duties of Excise
in lieu of Sales Tax
(3) Stamps and Registration
(4) Taxes on Advertisement
Answer:
28. (4) Apart from taxes levied and collected by the States,
the Constitution has provided for the revenues for
certain taxes on the Union List to be allotted, partly
or wholly to the States. There are taxes which are
levied and collected by the Union, but the entire
proceeds of which are assigned to the states, in
proportion determined by the Parliament. These taxes
include: Succession and Estate duty; Terminal Taxes
on goods and passengers; Taxes on railway freight
and fares; Taxes on transactions in stock exchanges
and future markets; and Taxes on sale and purchase
of newspapers and advertisements therein.


(SSC SAS Exam. 26.06.2010
(Paper-1)
29. The bank cheques are processed by using
(1) OCR (2) MICR
(3) OMR (4) PMR
Answer:
29. (2) Magnetic Ink Character Recognition, or MICR, is
a character recognition technology used primarily by
the banking industry to facilitate the processing of
cheques and makes up the routing number and
account number at the bottom of a cheque. The
technology allows computers to read information
(such as account numbers) off printed documents.
Unlike barcodes or similar technologies, however,
MICR codes can be easily read by humans. MICR
characters are printed in special typefaces with a
magnetic ink or toner, usually containing iron oxide.


(SSC SAS Exam. 26.06.2010
(Paper-1)
30. When was the Minimum Wages
Act enacted in India ?
(1) 1936 (2) 1948
(3) 1951 (4) 1956
Answer:
30. (2) The Minimum Wages Act, 1948 was enacted to
safeguard the interests of workers, mostly in the
unorganised sector by providing for the fixation of
minimum wages in certain specified employments. It
binds the employers to pay their workers the
minimum wages fixed under the Act from time to
time. Under the Act, both the Central Government
and the State Governments are the appropriate
Governments to fix, revise, review and enforce the
payment of minimum wages to workers in respect of
‘scheduled employments’ under their respective
jurisdictions.


(SSC CISF ASI Exam. 29.08.2010
(Paper-1)
31. Which one of the following does
not deal with export promotion?
(1) Trade Development Authority
(2) Minerals and Metals Trading Corporation
(3) Cooperative Marketing Societies
(4) State Trading Corporation of
India
Answer:
31. (3) According to the Reserve Bank of India, co-operative
marketing is a co-operatove association of cultivators
formed primarily for the purpose of helping the
members to market their produce more profitably
than is possible through private trade. Under the
system of co-operative marketing whole responsibility
of marketing is taken up by the farmers themselves,
organized on co-operative basis. The area of operation
of marketing society is usually fixed with reference
to local conditions - area based or commodity based.
The commodity-based societies related to grapes,
oranges, banana, pomegranate, etc. have wider
jurisdiction covering the major areas growing each
crop. There are societies at the producer’s level and
they federate at state or national level to deal with
bigger markets including foreign markets for export
of their produce.


(SSC CISF ASI Exam. 29.08.2010
(Paper-1)
32. Which of the following sets belongs to Central tax ?
(1) Excise duty, Sales tax and
Custom duty
(2) Excise duty, Custom duty
and Income tax
(3) Income tax, Custom duty
and House tax
(4) Custom duty, Entertainment tax and Income tax
Answer:
32. (2) The Central Indian Government that is officially
named as the “Union Government” is responsible for
the imposition of both direct taxes as well indirect
taxes. Listed below are some of the taxes that are
levied by the India Government: Banking Cash
Transaction Tax; Capital Gains Tax; Corporate Income
Tax; Fringe Benefit Tax; Personal Income Tax; and
Securities Transaction Tax. The indirect taxes are:
Customs Duty; Excise Duty and Service Tax.


(SSC CISF ASI Exam. 29.08.2010
(Paper-1)
33. Consequent upon the recommendations of the Working
Group on Rural Banks, 5 Rural
Regional Banks were initially set
up in the year
(1) 1973 (2) 1974
(3) 1975 (4) 1976
Answer:
33. (3) The Government of India set up Regional Rural
Banks (RRBs) on October 2, 1975. Initially, five RRBs
were set up on October 2, 1975 which were
sponsored by Syndicate Bank, State Bank of India,
Punjab National Bank, United Commercial Bank and
United Bank of India. Capital share being 50% by
the central government, 15% by the state government
and 35% by the scheduled bank


(SSC CPO Sub-Inspector
Exam. 12.12.2010 (Paper-1)
34. Poverty in less developed countries is largely due to
(1) voluntary idleness
(2) income inequality
(3) lack of cultural activities
(4) lack of intelligence of the
people
Answer:
34. (2) Despite the developing countries’ impressive
aggregate growth of the past 25 years, its benefits
have only reached the poor to a very limited degree.
Not only have the poorest countries grown relatively
slowly, but growth processes are such that within
most developing countries, the incomes of the poor
increase much less than the average. Much of the
poverty is due to severe inequality which in turn is
due to lop-sided development. Income inequality is
the major determinant of poverty both in developed
and non-developed countries. Rising unemployment
is a major source of spreading poverty. Lack of access
to crucial assets and services (health care, schooling,
and infrastructure) exclude the poor from the very
beginning.


(SSC CPO Sub-Inspector
Exam. 12.12.2010 (Paper-1)
35. Which one of the following categories of workers is termed as
cultivators ?
(1) Those who own land and
cultivate
(2) Those who lease in land and
cultivate
(3) Those who cultivate the land
of others
(4) Those who own land and
lease in from others or institutions and cultivate
Answer:
35. (3) Agricultural laborers are those who cultivate the
land of others but own no (or very little) land of their
own. Owner cultivators are those who own and
cultivate their own land. Landowners are those who
own land but do not cultivate it themselves. So
basically, a cultivator is an agricultural labourer who
tills the land of others.


(SSC CPO Sub-Inspector
Exam. 12.12.2010 (Paper-1)
36. The reserves held by Commercial Banks over and above the
statutory minimum, with the
RBI are called
(1) Cash reserves
(2) Deposit reserves
(3) Excess reserves
(4) Momentary reserves
Answer:
36. (3) In banking, excess reserves are bank reserves in
excess of the reserve requirement set by a central
bank. They are reserves of cash more than the
required amounts. Holding excess reserves has an
opportunity cost if higher risk-adjusted interest can
be earned by putting the funds elsewhere; the
advantage of holding some funds in excess reserves
is that doing so may provide enhanced liquidity and
therefore more smooth operation of payment system.


(SSC Combined Graduate Level
Tier-I Exam. 26.06.2011
(Second Sitting)
37. Who is authorised to issue
coins in India ?
(1) Reserve Bank of India
(2) Ministry of Finance
(3) State Bank of India
(4) Indian Overseas Bank
Answer:
37. (2) Coins may be coined at the Mint for issue under
the authority of the Central Government, (of such
denominations not higher than one hundred rupees),ofECONOMICS
SGAE–648
such dimensions and designs, and of such metals or
of mixed metals of such composition as the Central
Government may, by notification in the official Gazette,
determine.) Paper Currency in India consists of notes
of various denominations which are issued by the
RBI and the Government of India. The one rupee
note is issued by the Ministry of Finance and bears
the signature of the secretary. All currency notes are
legal tender.


(SSC Combined Graduate Level
Tier-I Exam. 26.06.2011
(Second Sitting)
38. Reserve Bank of India was nationalised in
(1) 1948 (2) 1947
(3) 1949 (4) 1950
Answer:
38. (3) The Reserve Bank of India was nationalised with
effect from 1st January, 1949 on the basis of the
Reserve Bank of India (Transfer to Public Ownership)
Act, 1948. All shares in the capital of the Bank were
deemed transferred to the Central Government on
payment of a suitable compensation. The Reserve
Bank of India (RBI) is India’s central banking
institution.


(FCI Assistant Grade-III
Exam. 5.02.2012 (Paper-1)
39. National Social Assistance Programme is aimed at providing
(1) financial support to Scheduled Castes and Scheduled
Tribes
(2) old age pension to very poor
(3) insurance for the poor
(4) All of the above
Answer:
39. (2) The National Social Assistance Scheme (NSAS) or
National Social Assistance Programme (NSAP) is a
flagship welfare programme of the Government of
India initiated on 15 August, 1995. It provides a
pension for the elderly who live below the poverty
line. Article 41 of the Indian Constitution directs the
State to provide public assistance to its citizens in
case of unemployment, old age, sickness and
disablement and in other cases of undeserved want
within the limit of its economic capacity and
development. The scheme is a “giant step” towards
achieving the directive principle in the Constitution.


(FCI Assistant Grade-III
Exam. 5.02.2012 (Paper-1)
40. Which of the following is a part
of tertiary sector?
(1) Power and transportation
(2) Animal Husbandry
(3) Cotton manufacturing
(4) Cultivation of crops
Answer:
40. (1) The service sector, also called the tertiary sector,
is one of the three parts of the economy in the Threesector hypothesis. It involves the provision of services
to business as well as final consumers. Services may
involve the transport, distribution and sale of goods
from producer to consumers as may happen in
wholesaling and retailing, or may involve the provision
of a service, such as in pest control or entertainment.


(SSC Combined Matric Level (PRE)
Exam. 21.05.2000 (Ist Sitting)
(East Zone)
41. What was the objective of Command Area Development
Programme?
(1) To ensure that land is given
to the tillers
(2) To ensure better utilisation
of irrigation potential
(3) To develop the areas under
the command of Army
(4) Poverty alleviation in selected
areas
Answer:
41. (2) The Command Area Development Programme was
launched in the year 1974-75 under Centrally
Sponsored Scheme, with the objective of fast
utilization of created irrigation potential and optimum
agriculture production from irrigable land. It aimed
at: reclamation of water logged areas; construction
of field irrigation channels; construction of field
drains; all round development of areas pertaining to
agriculture, etc.


(SSC Combined Matric Level (PRE)
Exam. 21.05.2000 (Ist Sitting)
(East Zone)
42. Distribution of food rains
operates under a two tier
system with the introduction of
(1) Targetted Public Distribution System
(2) The Consumers Cooperatives
(3) The Cooperative Marketing
Societies
(4) The Service Cooperatives
Answer:
42. (1) The Targeted Public Distribution System (TPDS)
replaced the erstwhile PDS from June 1997. Under
the new system a two tier subsidized pricing system
was introduced to benefit the poor.


(SSC Combined Matric Level (PRE)
Exam. 21.05.2000 (Ist Sitting)
(Riapur, Madhya Pradesh)ECONOMICS
SGAE–595
43. Commercialisation of agriculture implies
(1) cultivation of timbers
(2) plantation
(3) production of crops for sale
(4) production of crops like
wheat or rice
Answer:
43. (3) Commercial agriculture is large-scale production
of crops for sale, intended for widespread distribution
to wholesalers or retail outlets. In commercial farming
crops such as wheat, maize, tea, coffee, sugarcane,
cashew, rubber, banana, and cotton are harvested
and sold into world markets.


(SSC Combined Matric Level
(PRE) Exam. 21.05.2000
(Ist Sitting) (Middle Zone)
44. Agricultural income tax is a
source of revenue to
(1) Central Government
(2) State Government
(3) Local Administration
(4) Centre and State Govern
ments
Answer:
44. (2) The Constitution of India allocates the taxation of
agricultural income to states. Land revenue is a major
source of revenue for states in India


(SSC Combined Matric Level (PRE)
Exam. 13.05.2001 (Ist Sitting)
45. ISI mark is not given to which
of the following products?
(1) Electrical goods
(2) Hosiery goods
(3) Biscuits
(4) Cloth
Answer:
45. (3) ISI mark is a certification mark for industrial
products in India, which is mandatory for certain
products to be sold in India, like most of the electrical
appliances viz; switches, electric motors, wiring
cables, heaters, kitchen appliances etc., and other
products like portland cement, LPG valves, LPG
cylinders, automotive tyres.


(SSC Combined Matric Level (PRE)
Exam. 13.05.2001 (IInd Sitting)
46. The duties levied on alcoholic
liquors, narcotic drugs and
opium come under—
(1) Central Excise Duty
(2) Land Revenue
(3) State Excise Duty
(4) General Sales Tax
Answer:
46. (1) An excise or excise tax (sometimes called an excise
duty) is a type of tax charged on goods produced
within the country (as opposed to customs duties,
charged on goods from outside the country). It is
charged on many goods like cars, writing paper,
printing paper and packing paper, drugs and
pharmaceuticals, alcoholic liquor, water filtration and
purification devices, pan masala, etc.

(SSC Combined Matric Level (PRE)
Exam. 05.05.2002 (Ist Sitting) (North
Zone, Delhi)
47. A high Statutory Liquidity Ratio
(SLR)
(1) restricts lending
(2) increases supply of cash
(3) provides funds to the state
(4) increases the strength of
the banks
Answer:
47. (1) Statutory Liquidity Ratio refers to the amount that
the commercial banks require to maintain in the form
gold or government approved securities before
providing credit to the customers. An increase in SLR
practically restricts lending, thus controlling credit
in the country. In India, the RBI can increase the
Statutory Liquidity Ratio to contain inflation, suck
liquidity in the market, to tighten the measure to
safeguard the customers’ money.


(SSC Combined Matric Level (PRE)
Exam. 05.05.2002 (IInd Sitting)
(North Zone, Delhi)
48. Corporation tax is a tax imposed
on
(1) the net incomes of the companies
(2) the corporate properties
(3) the utilities provided by the
corporation
(4) tax imposed by the corporation on individual properties
Answer:
48. (1) Corporate Tax is a levy placed on the profit of a
firm, with different rates used for different levels of
profits. Corporate taxes are taxes against profits
earned by businesses during a given taxable period.
Most countries tax all corporations doing business in
the country on income from that country.


(SSC Combined Matric Level (PRE)
Exam. 12.05.2002 (Ist Sitting)
49. What is ‘AGMARK’?
(1) It is a marketing seal issued
on the graded agricultural
commodity
(2) It stands for agricultural
marketing
(3) It represents agricultural
management and regulation
(4) None of these
Answer:
49. (2) AGMARK is a certification mark employed on
agricultural products in India, assuring that they
conform to a set of standards approved by the
Directorate of Marketing and Inspection, an agency
of the Government of India. The present AGMARK
standards cover quality guidelines for 205 different
commodities spanning a variety of Pulses, Cereals,
Essential Oils, Vegetable Oils, Fruits & Vegetables,
and semi-processed products.


(SSC Combined Matric Level (PRE)
Exam. 12.05.2002 (IInd Sitting)
50. The Imperial Bank of India, after its nationalisation came to
be known as :
(1) Reserve Bank of India
(2) State Bank of India
(3) United Bank of India
(4) Indian Overseas Bank
Answer:
50. (2) The State Bank of India, the largest banking and
financial services company in India by revenue, assets
and market capitalization; traces its ancestry to British
India, through the Imperial Bank of India, to the
founding in 1806 of the Bank of Calcutta, making it
the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other
two presidency banks—Bank of Calcutta and Bank
of Bombay—to form the Imperial Bank of India, which
in turn became the State Bank of India. The
Government of India nationalized the Imperial Bank
of India in 1955, with the Reserve Bank of India
taking a 60% stake, and renamed it the State Bank
of India


(SSC Combined Matric Level
(PRE) Exam. 30.07.2006
(Ist Sitting) (East Zone)
51. The ‘sunrise industries’ imply
(1) petrochemicals and electronics industry
(2) sunflower oil industry
(3) computer industry
(4) chemical industry
Answer:
51. (1) Sunrise Industry is a colloquial term for a sector
or business that is in its infancy, but is growing at a
rapid pace. A sunrise industry is typically
characterized by high growth rates, numerous startups and an abundance of venture capital funding. A
sunrise industry is often characterized by a high
degree of innovation. Examples of sunrise industries
include hydrogen fuel production, space tourism,
electronic goods (high-technology industries that hold
promise of future development), etc.ECONOMICS
SGAE–649


(SSC Combined Matric Level (PRE)
Exam. 30.07.2006 (IInd Sitting)
(Central Zone)
52. Regional Rural Banks are sponsored by
(1) Nationalised Commercial
Bank
(2) Reserve Bank of India
(3) State Bank of India
(4) Government of India
Answer:
52. (1) The Narasimham committee conceptualized the
foundation of regional rural banks in India. Five
regional rural banks were set up on October 2, 1975.
There were five commercial banks, viz. Punjab
National Bank, State Bank of India, Syndicate Bank,
United Bank of India and United Commercial Bank,
which sponsored the regional rural banks.


(SSC Combined Matric Level (PRE)
Exam. 30.07.2006 (IInd Sitting)
(Central Zone)
53. What type of products, does
CACP recommend minimum
support price for ?
(1) Industrial products
(2) Agricultural products
(3) Pharmaceutical products
(4) None of the above
Answer:
53. (2) The Agricultural Prices Commission was set up in
January, 1965 to advise the Government on price
policy of major agricultural commodities. Since March
1985, the Commission has been known as
Commission for Agricultural Costs and Prices (CACP).
The minimum support prices (MSP) for major
agricultural products are fixed by the government,
each year, after taking into account the
recommendations of CACP.


(SSC Higher Secondary Level
Data Entry Operator & LDC
Exam. 28.11.2010 (Ist Sitting)
54. Special Economic Zone (SEZ)
concept was first introduced in
(1) China (2) Japan
(3) India (4) Pakistan
Answer:
54. (1) Worldwide, the first known instance of an SEZ
seems to have been an industrial park set up in Puerto
Rico in 1947 to attract investment from the US
mainland. In the 1960s, Ireland and Taiwan followed
suit, but in the 1980s China made the SEZs gain
global currency with its largest SEZ being the
metropolis of Shenzhen.


(SSC Stenographer (Grade 'C' & 'D')
Exam. 09.01.2011)
55. Money supply is governed by the
(1) Planning Commission
(2) Finance Commission
(3) Reserve Bank of India
(4) Commercial Banks
Answer:
55. (3) In economics, the money supply or money stock,
is the total amount of monetary assets available in an
economy at a specific time. It is governed and
regulated by the central bank of a country. The
Reserve Bank of India regulates money supply in India
through its several policy rates and reserve ratios.


(SSC Multi-Tasking (Non-Technical)
Staff Exam. 20.02.2011)
56. The food stocks that are built
up during the years of bumper
harvest are called :
(1) Capital stock
(2) Buffer stock
(3) Production stock
(4) Grain stock
Answer:
56. (2) Commercial grain stock is the current amount of
harvested grain crops stored domestically, including
both on-farm and off-farm storage sites. Buffer stocks
are created during periods of normal or bumper
harvest to ensure food security during the periods
when production is short of normal demand during
bad agricultural years.


(SSC Multi-Tasking (Non-Technical)
Staff Exam. 27.02.2011)
57. The Minimum Wages Act was
first passed in India in the year:
(1) 1947 (2) 1948
(3) 1950 (4) 1951
Answer:
57. (2) The Minimum Wages Act, 1948 was enacted to
safeguard the interests of workers, mostly in the unorganized sector by providing for the fixation of
minimum wages in certain specified employments. It
binds the employers to pay their workers the
minimum wages fixed under the Act from time to
time.


(SSC Multi-Tasking (Non-Technical)
Staff Exam. 27.02.2011)
58. AGMARK is a guarantee of standard :
(1) quality (2) quantity
(3) weight (4) size
Answer:
58. (1) The present AGMARK standards cover quality
guidelines for 205 different agricultural commodities
spanning a variety of Pulses, Cereals, Essential Oils,
Vegetable Oils, Fruits & Vegetables, and semiprocessed products.


(SSC (10+2) Level Data Entry
Operator & LCD Exam. 04.12.2011
(Ist Sitting (North Zone)
59. ‘Mixed economy’ refers to
(1) the co-existence of heavy,
small scale and cottage industries
(2) the promotion of agriculture
as well as cottage industries
(3) the co-existence of rich as
well as poor
(4) the co-existence of public as
well as private sector
Answer:
59. (4) Mixed economy is an economic system in which
both the state and private sector direct the economy,
reflecting characteristics of both market economies
and planned economies.


(SSC (10+2) Level Data Entry
Operator & LCD Exam. 04.12.2011
(IInd Sitting (North Zone)ECONOMICS
SGAE–596
60. Golden Handshake Scheme is
associated with
(1) Inviting foreign companies
(2) Private investment in public enterprises
(3) Establishing joint enterprises
(4) Voluntary retirement
Answer:
60. (4) A golden handshake is a clause in an executive
employment contract that provides the executive with
a significant severance package in the case that the
executive loses his or her job through firing,
restructuring, or even scheduled retirement. This can
be in the form of cash, equity, and other benefits,
and is often accompanied by an accelerated vesting
of stock options.


(SSC (10+2) Level Data Entry
Operator & LCD Exam.04.12.2011
(IInd Sitting) (East Zone)
61. The most accessible mediumin
India is
(1) Television (2) Radio
(3) Cinema (4) Newspapers
Answer:
61. (4) The newspaper’s importance in India may be due
to the fact that it is relatively free from competition
despite the rise of the Internet. Though there are a
large number of households who own television sets,
there are still many more without. Newspapers are
highly affordable and are the more accessible
alternative, even for rural areas. Moreover, it is not
dependent on other factors such as infrastructure
or available of electricity, which are both areas that
are lacking in India.


(SSC Constable (GD) & Rifleman (GD)
Exam. 22.04.1912 (IInd Sitting)
62. Capital Market Regulator is:
(1) NSE (2) RBI
(3) SEBI (4) IRDA
Answer:
62. (3) Capital Market Regulator is the Securities and
Exchange Board of India (SEBI).


(SSC (10+2) Level Data Entry
Operator & LDC Exam. 21.10.2012
(2nd Sitting)
63. Buffer stock operations are conducted by
(1) Warehousing Corporation
of India
(2) State Trading Corporation of
India
(3) Food Corporation of India
(4) Ministry of Agriculture
Answer:
63. (3) Food Corporation of India


(SSC Delhi Police Sub-Inspector
(SI) Exam. 19.08.2012)
64. Coal mines were Nationalised in
the year :
(1) 1970 (2) 1971
(3) 1972 (4) 1976
Answer:
64. (3) The Coal Conservation and Development Act, 1974
provides for imposition of excise duty on coal
despatches for meeting activities like conservation of
coal, development of coal mines execution of stowing
and other operations for the safety in coal mines and
research work connected with conservation and
utilisation of coal, and assistance in mining operation.
The Coking Coal (Nationalisation) Act was enacted in
1972.


(SSC Multi-Tasking Staff
Exam. 10.03.2013)
65. The system of “Memorandum of
Understanding” (MoU) was introduced in
(1) 1989 – 90 (2) 1990 – 91
(3) 1987 – 88 (4) 1988 – 89
Answer:
65. (3) The System of Memorandum of Understanding was
introduced in the Public Sector Enterprises during
the year 1987-88 in India. It was based on the report
of the Arjuna Sengupta Committee (1984).


(SSC Multi-Tasking Staff
Exam. 17.03.2013, IInd Sitting)
66. The upper limit of investment in
plant and machinery for smallscale industries has been fixed
currently at
(1) 35 lakhs (2) 45 lakhs
(3) 60 lakhs (4) 1 crore
Answer:
66. (4) The upper limit of investment in plant and machinery
for small-scale industries has been fixed at Rs. one
crore.


(SSC Multi-Tasking Staff
Exam. 24.03.2013, Ist Sitting)
67. Of the following land uses, which
is restricted to Special Economic Zones ?
(1) Educational Institutions
(2) Free trade Centres
(3) Marketing Centres
(4) Information Technology
Companies
Answer:
67. (2) The category Special economic zone includes free
trade zones (FTZ), export processing Zones (EPZ), free
Zones (FZ), industrial parks or industrial estates (IE),
free ports, free economic zones, and urban enterprise
zones. The goal of a SEZ structure is to increase
foreign direct investment by foreign investors.


(SSC Graduate Level Tier-I
Exam. 21.04.2013)
68. As per the TRIPS Agreement-
1994, a good originating from a
region with specific character/
quality/reputation is covered/to
be protected under the IPR as
(1) Patent
(2) Trademark
(3) Trade secret
(4) GI (Geographical Indicator)
Answer:
68. (4) Geographical Indication (GI) means the name of a
region or a locality, a specific place or, in exceptional
cases, a country, used to describe a product
originating in that region, locality, specific place or
country, which possesses a specific quality, reputation
or other characteristics attributable to that
geographical origin, and the production and/or
processing and/or preparation of which take place in
the defined geographical area.


(SSC Graduate Level Tier-I
Exam. 21.04.2013)
69. Identify the one which is not related to the Agricultural Price Policy.
(1) Buffer stock (2) Imports
(3) Support price (4) Licensing
Answer:
69. (4) Licensing is a marketing and brand extension tool
that is widely used by everyone from major
corporations to the smallest of small business. A
license may be issued by authorities, to allow an
activity that would otherwise be forbidden.


(SSC Graduate Level Tier-I
Exam. 19.05.2013)
70. Steel sheets used in the production of furnitures is an example
of
(1) an intermediate good
(2) a final good
(3) an investment good
(4) a consumption good
Answer:
70. (1) Intermediate goods are semi-finished products are
goods that are used as inputs in the production of
other goods including final goods. It comprises material or item that is a final-product of a process, but is
also used as an input in the production process of
some other good. In the production process, intermediate goods either become part of the final product, or are changed beyond recognition. Steel sheets
serve as raw materials in the production of furniture.


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