List of practice Questions

Arrange the following in sequence for the impact on economy when central bank raises Repo rate :
A. People will take less loan.
B. Money supply will decrease in economy.
C. Borrowing become costlier.
D. Commercial banks will increase interest rate.
E. Aggregrate demand will decrease.
Choose the correct answer from the options given below :

A surplus current account means
A. Receipts > Payments
B. Receipts = Payments
C. Receipts < Payments
D. Receipts > Price of commodity
E. Receipts = Total Sale
Choose the correct answer from the options given below :

Choose the correct sequence :
A. Factor payments
B. Goods and services produced and sold in the market
C. Supply of factors of production by the households
D. Spending on goods and services
Choose the correct answer from the options given below :

A factory can increase its output by using a new type of machine. Adoption of this new technology is called_____

Which statement is correct in the context of revenue from customs duties as mandated by the Constitution?

The Government Budget has a revenue deficit this can be financed by:
A. Borrowings
B. Tax Revenue
C. Disinvestment
D. Indirect taxes
Choose the correct answer from the options given below:

Choose the correct example of Revenue Expenditure.

Match List I with List II

LIST I		LIST II
A	Stocks	I	Expected constant loss in value of a capital
B	Flows	II	Unexpected destruction of capital
C	Depreciation	III	Have time dimension
D	Capital loss	IV	Do not have any time dimension

Choose the correct answer from the options given below:

Match List - I with List- II.

List - I	List - II
(A) Normal goods	(I) These goods are consumed together
(B) Inferior goods	(II) Demand for the good decreases as income of the consumer increases
(C) Substitute goods	(III) These goods are used in place of each other
(D) Complementary goods	(IV) Demand for the good increases as income of consumer increases

Choose the correct answer from the options given below:

Match List - I with List- II.

List - I	List - II&
(A) Current Account Surplus	(I) Export of invisibles - Import of Invisibles
(B) Balanced Current Account	(II) Receipts \(>\) Payments
(C) Net Invisibles	(III) Receipts = Payments
(D) Current Account Deficit	(IV) Receipts \(<\) payments

Choose the correct answer from the options given below:

Arrange the following as steps taken by Central Bank to control the problem of inflation in India through its monetary policy.
A) Commercial Banks will increase their lending rate
B) Borrowing requirements will fall
C) Increase in repurchase agreement rate
D) Reduction of demand for goods and services at macro level
E) Income generation will slow down
Choose the correct answer from the options given below:

Indian System of Medicine (ISM) doesn't include :

Make a correct chronological sequence of following.
(A) Establishment of TISCO
(B) First Population census 
(C) Zamindari system
(D) Opening of Suez canal
(E) Introduction of railways
Choose the correct answer from the options given below:

Direct tax is called direct because it is collected directly from ________.

Among the followings which is not included in Capital Account Balance ?

The first and foremost role of money is that it acts as a :

In this diagram, budget line goes flater from $ P_1 P_2 \,to \,P_2 P^{'}_1 $ . The reason for budget line being flater is:

Which of the following is not a part of money supply?

The first industrial policy resolution (IPR) in independent India was introduced in year _____

Identify the correct statements from the following:
(A) When central bank buys securities without any promise to sell them later is called injecting
(B) Open market operations in buying and selling of securities by the commercial bank
(C) Open market operation leads to a change in bank rate
(D) When central bank sells securities without any promise to buy them later is called injecting
(E) RBI influences money supply through open market operations
Choose the correct answer from the options given below:

In India, Fiscal Responsibility and Budget Management Act, (FRBMA) was enacted in the year ________.

What is the General shape of Demand curve ?

Match List - I with List - II.

List I		List II
A.	Goods used in production process and are durable in character	I.	Intermediate goods
B.	Inputs for production	II.	Flows
C.	Machines in a factory	III.	Capital goods
D.	Annual profits	IV.	Stocks

Choose the correct answer from the options given below :

Among the followings which is not included in Capital Account Balance ?

The British rule in India led to.
(A) Collapse of India's world famous Handicraft industry
(B) Development of Modern industry
(C) Development of Railways
(D) Growth of education sector
Choose the correct answer from the options given below: