11.
The main functioning of the banking system is to
a)
Accept deposits and provide credit
b)
accept deposits and subsidies
c)
Provide credit and subsidies
d)
Accept deposits, provide credit and subsidies
12.
Which bank is limited to the needs of
agriculture and rural finance?
a)
SBI
b)
NABARD
c)
IFC
d)
RBI
13.
The effect of a government surplus upon the
equilibrium level of NNP (net national product ) is substantially the same as
a)
An increase in investment
b)
An increase in consumption
c)
An increase in saving
d)
A decrease in saving.
14.
The value of money varies
a)
Directly with the, interest rate
b)
Directly with the price level
c)
Directly with the volume of employment
d)
Inversely with the price level.
15.
Corporation tax is imposed by
a)
State government
b)
General Government
c)
Local government.
d)
State as well as Central Government.
16.
The government of India and reserve bank of India
have decided to introduce 1 billion pieces of Rs. 10 notes in polymer / plastic
on a field trial basis. Which of the following is / are the objectives behind
this move?
1.
Increase of the lifetime of the notes.
2.
Combating counterfeiting.
3.
Reducing the cost of minting of currency.
Select the correct answer using
the codes given below.
a)
1 and 2
b)
Only 2
c)
Only 3
d)
All of these
17.
In India, the price of petroleum products has
been deregulated mainly to
a)
Discourage the exploration of oil reserves in
the country.
b)
Discourage the demand for private vehicles.
c)
Curb the use of black money in the economy.
d)
Curb the use of black money in the economy.
18.
Consider the following statements.
1.
The recent decision of government of India to
partially decontrol the sugar industry gives the millers the freedom to sell
sugar in open market and removes their obligation to supply sugar at subsidized
rates to ration shops.
2.
C rangarajan panel also suggested decontrolling
of sugar industry in India.
Which of the statement s given above is / are correct?
a)
Only 1
b)
Only 2
c)
Both 1 and 2
d)
Neither 1 nor 2
19.
Which one of the following is not taken as a
factor among the non – economic factors which contributes in economic growth?
a)
Human resource
b)
Corruption
c)
Social organization
d)
Market surplus in agriculture.
20.
Which one of the following is not a department
in the Ministry of finance?
a)
Expenditure
b)
Revenue
c)
Banking division
d)
Economic affairs.
ANSWERS
11.A
12.B
13.D
14.D
15.B
16.D
17.A
18.C
19.D
20.C