2. ………………… is the personal income minus personal income tax and miscellaneous receipts of
Government administrative departments.
Correct : B. Disposal income
3. Which of these is/are not included in net domestic product at factor cost.
Correct : D. None
4. Which is the apex bank for agricultural credit in India?
Correct : C. NABARD
5. SIDBI is a subsidiary bank of
Correct : A. IDBI
6. RBI check inflation by
Correct : C. Both
7. Which of the following is near money?
Correct : D. All the three
8. Which of the following is the oldest system of money?
Correct : A. Barter
9. Optional money is a
Correct : B. Non-legal tender money
10. Which of these is not a function of money?
Correct : C. Power indicator
11. Which of the following function does money serve when used to measure the prices of different goods
and services?
Correct : C. Standard of value
12. Which of the following function does money serve when used to purchase or sell different goods and
services?
Correct : B. Medium of exchange
13. If RBI wants to decrease the money supply in order to check inflation it will
Correct : D. All or any of the above three
14. If the country is passing through recession, the RBI would
Correct : D. All or any of the above three
15. If RBI sucks excess money into circulation this will effect
Correct : C. Both
16. Manipulation in CRR enables the RBI to …….
Correct : A. Influence the lending ability of the commercial banks
17. How does a commercial bank create money
Correct : B. By lending a part of its deposits
18. Which of these affects the demand for money?
Correct : D. All the three
19. If someone keeps some money for bad days, this demand for money is known by ……. motive of money
Correct : C. Precautionary
20. Which of these would lead to fall in demand for money?
Correct : C. Increase in real rate of interest
21. EXIM Bank was established in
Correct : A. Jan. 1982
22. EXIM Bank is authorized to raise loan from
Correct : D. Trading activities
23. Which of these are not the duties of EXIM Bank?
Correct : D. Trading activities
24. RBI was nationalized in
Correct : B. Jan. 1949
25. Which of these terms are/is appropriate for RBI?
Correct : C. Both
26. Exchange Control and Management is done by
Correct : A. RBI
27. FERA has been replaced by
Correct : B. FEMA
28. CRR means
Correct : A. Cash Reserve Ratio
29. CRR is used to
Correct : A. Combat inflation
30. SLR stands for
Correct : B. Statutory liquid ratio
31. Nationalization of Banks took place in
Correct : A. July 1969
32. Repo Market means
Correct : A. A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt instrument
33. Repo transaction means
Correct : A. Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date.
34. Reverse Repo transaction means
Correct : B. Sale or purchase of securities by the holder to the investor with the commitment to sell or purchase them at a predetermined rate and date
35. Repo transactions are allowed in
Correct : D. All the three
36. India is a recipient of loan from which of these agencies
Correct : D. All the three
37. Demand pull inflation rises due to
Correct : B. Mismatch between demand and supply of commodities
38. Cost push inflation arises due to
Correct : A. Persistent rise in factor cost
39. Deflation is a state when
Correct : A. Prices are falling
40. Which of these is one of the causes of inflation?
Correct : D. All the three
41. Deficit financing means
Correct : C. Both
42. Inflationary conditions may co-exist with which of the following situation
Correct : D. All the three
43. Given the supply quantity which is fixed an increase in aggregate demand will have direct impact on
Correct : B. Inflationary pressure
44. Supply of money refers to
Correct : A. Total money held by the public
45. Given a reserve ratio of 20% in initial deposit of `1000 in a banking system would create secondary
deposit of `…………..
Correct : C. `4,000
46. Given a reserve ratio of 20% for an initial deposit of `1000 create total supply of money
Correct : B. `5,000
47. Which of these is not the function of IMF?
Correct : C. It provides forum for settlement of international trade disputes
48. Which of these is not the function of World Bank?
Correct : A. To arbitrate on international trade disputes.
49. Which of the following is not the function of World Trade Organization?
Correct : A. To settle border disputes of member countries.
50. At a given time and in a given marketplace, the entire market demand curve indicates the
Correct : B. quantity of a good consumers would be able to purchase at a series of prices.
51. Assume Samantha likes hot dogs and hamburgers equally, and the price of hamburgers (a normal
good) declines. She will most likely purchase more hamburgers; this is
Correct : B. a reflection the substitution effect
52. Which of the following would not be considered a normal good?
Correct : B. flour
53. A typical demand curve will normally have a
Correct : D. negative slope
54. Which of the following would not be considered compliments?
Correct : C. Coke and Pepsi
55. Which of the following would not be considered substitutes?
Correct : D. Hamburgers and french fries
56. The price of Ford automobiles increases and the price of Chevrolets remains constant, the demand for Chevrolets will
Correct : A. increase
57. An improvement in technology would shift
Correct : D. the supply curve outward
58. A shift outward in supply curve will result in equilibrium price
Correct : C. decreasing and quantity increasing
59. A reduction in the number of producers will result in equilibrium price
Correct : B. increasing and quantity decreasing
60. As a certain type of clothing becomes more fashionable, we would expect its equilibrium price
Correct : D. and quantity to increase
61. If supply and demand both shift outward, but demand shifts outward more than supply, the equilibrium price
Correct : A. will increase and quantity will increase
62. At Christmas time often a certain toy or doll becomes increasingly popular; this is primarily due to a(n)
Correct : B. increase in demand
63. Which of the following is correct for a price floor set above the equilibrium price?
Correct : C. quantity supplied exceeds quantity demanded at the set price
64. Which of the following is correct for the price ceiling which is set below the market‟s equilibrium price?
Correct : A. quantity demanded exceeds quantity supplied at the set price
65. What will happen to the equilibrium price and quantity of peanut butter if peanuts increase in price and
the price of jelly decreases?
Correct : C. the equilibrium price will rise and the equilibrium quantity will be indeterminate
66. Which of the following would not reduce the transaction cost in a market?
Correct : C. a full page newspaper ad to sell your used lawn mower
67. Which Indian State has favourable sex ratio?
Correct : A. Kerala
68. Green revolution is also known as
Correct : A. Wheat revolution
69. Green revolution was successful because of use of ……. Seeds
Correct : A. HYV
70. BSNL stands for
Correct : D. Bhartiya Swadeshi Nigam Lt(d)
71. Regulatory framework for Telecom sector is provided by
Correct : D. TRAI
72. TRAI stands for
Correct : B. Telecom Regulatory Authority of India
73. Sarvya Siksha Abhiyan policy was declared in
Correct : B. 2001
74. Disguised unemployment is mainly due to
Correct : A. Under employment
75. Disguised unemployment is mainly found in
Correct : B. Rural areas
76. Disguised unemployment refers to the situation when
Correct : A. Marginal Productivity of the surplus workers is zero
77. Structural unemployment is mainly due to
Correct : A. Structural changes in the economy
78. Which of the following is a cause of frictional unemployment?
Correct : C. Both
79. Which of the following is not a cause of unemployment in India?
Correct : D. Liberalization
80. Labour cost consists of
Correct : A. All people officially employed or unemployed
81. The type of unemployment that includes those persons who are unemployed for an intervening period of
change over in job for better job is known as
Correct : C. Frictional unemployment
82. Which of these measures would not reduce natural rate of unemployment?
Correct : C. Hike in unemployment allowance
83. Unemployment due to mismatch between skill possessed and present available jobs
Correct : B. Structural unemployment
84. In an agricultural family all the family members are working the farmland of the family. Due to addition of two more person in the family they are also working in the farmland of the family with no additional increase in farm output. This type of unemployment is known as
Correct : B. Disguised unemployment
85. Which of these is/are the feature of an underdeveloped economy?
Correct : D. All the three
86. Which of these is primary sector.
Correct : D. Poultry firming
87. Which of these is a secondary sector
Correct : A. Manufacturing sector
88. Which of the following is not an economic activity?
Correct : A. Painting for self use
89. ……………. States that rapid growth of per capita income will be associated with a reduction in poverty.
Correct : A. The trickle down theory
90. If no one is aware of conflict, it is generally agreed that:
Correct : C. no conflict exists.
91. Which of the following is not a requirement in your text‟s definition of conflict?
Correct : B. overt acts only
92. _____ is a process that begins when one party perceives that another party has negatively affected, or is
about to negatively affect, something that the first party cares about.
Correct : D. Conflict
93. Which of the following is not one of the views of conflict?
Correct : D. the inevitability view
94. The traditional view of conflict argues that conflict:
Correct : B. indicates a malfunctioning within the group.
95. The traditional view of conflict is:
Correct : A. the belief that all conflict is harmful and must be avoide(d)
96. Which one of the following is not part of the traditional view of conflict?
Correct : A. inevitable
97. Which one of the following views on conflict dominates in most actual groups and organizations?
Correct : C. traditional
98. The _____ view of conflict argues that conflict is a natural and inevitable outcome in any group.
Correct : A. human relations
99. The _____ view of conflict argues that some conflict is absolutely necessary for a group to perform
effectively.
Correct : B. interactionist
100. The human relations view of conflict argues that conflict is: