Competitive Exams: Economics MCQs (Practice-Test 112 of 122)

  1. Consider the following statements with regard to state level unemployment rates (unemployed as percent of labour forceusual principal status) based on NSSO data for 1987 − 88:

    1. Kerala has a very high unemployment rate.

    2. Kerala has a very low unemployment rate.

    3. Madhya Pradesh has a very low unemployment rate.

    4. Utter Pradesh has a very low unemployment rate.

    Of these statements

    1. 2 alone is correct

    2. 1, 3 and 4 are correct

    3. 1 and 3 are correct

    4. 1 and 4 are correct.

  2. Which one of the following is NOT the objective of the State Trading Corporation of India?

    1. promote exports of non-traditional items and explore new fields for traditional export item.

    2. Check unhealthy competition and undercutting of prices in international markets

    3. Encourage exports to and imports from the centrally planned economies,

    4. secure adequate and regular supplies of essential commodities to meet the domestic demand

  3. In India's imports, the largest share today is that of (by group)

    1. developing countries

    2. the OPEC Group

    3. the OECD

    4. the CIS countries

  4. Import liberalisation for the domestic market as a strategy would tend to

    1. raised the ratio of imports to DGP in the immediate future.

    2. lower the ratio of imports to GDP in the immediate future.

    3. hamper agricultural growth in the long run

    4. depress commodity prices in the immediate future.

  5. the debt/export ratio in India at the beginning of the 1990s was close to

    1. 400%

    2. 300%

    3. 200%

    4. 150%

  6. What is the correct sequence of the following events?

    1. Import substitution strategy.

    2. Two-stage devaluation of rupees

    3. Partial convertibility of rupee

    Selection the correct answer using the codes given below

    Codes:

    1. 1, 3, 2

    2. 3, 1, 2

    3. 1, 2, 3

    4. 2, 1, 3

  7. Which one of the following pairs in NOT correctly matched?

      • EXIT policy
      • Import controls
      • EXIM scrips
      • Export subsidy
      • LEARMS
      • Rupee convertibility
      • N/A
      • N/A
  8. The Statutory Liquidity Ratio (SLR) for commercial banks in India, can be raised to a maximum level of

    1. 20%

    2. 25%

    3. 35%

    4. 40%

  9. Which one of the following items CANNOT be considered as high powered Money?

    1. Commercial Banks'Deposits

    2. RBI credit to commercial banks

    3. ‘Other deposits’ with RBI

    4. Advances made

  10. Which is the approximate range of current rate of inflation in India?

    1. 3 − 5 percent

    2. 7 − 9 percent

    3. 15 − 20 percent

    4. 20 − 25 percent

  11. The main reason for the high growth of money supply in India since 1970 has been the raise in

    1. foreign lending

    2. foreign borrowing

    3. RBI credit to the government

    4. bank credit to the private sector

  12. A number of nationalised banks have posted losses during the last year because of

    1. norms of income recognition and provisioning reduction in interest margin

    2. reduction in interest margin

    3. Sharp rise in administrative experience

    4. all of the above

  13. The total number of foreign banks and their branches operating in India in 1991 was

    1. 19 foreign banks with 92 branches

    2. 21 foreign banks with 132 branches

    3. 22 foreign banks with 140 branches

    4. 25 foreign banks with 155 branches

  14. Which of the following events will result in and increase in commercial bank reserves?

    1. when thee is an increase in the currency held by public.

    2. when the Central Bank purchases governments securities from commercial banks.

    3. when there is an increase in the monetary gold stock.

    4. When there is a decline in the Central

    Bank loans to commercial banks.

    Select the correct answer using the codes given below

    Codes:

    1. 2 alone

    2. 3 alone

    3. 1 and 4

    4. 2 and 3

  15. The Tax GDP ratio in India in the 1990s has been about

    1. 85

    2. 14%

    3. 17%

    4. None of the above