1. In the very recent years which country accounts for the highest inward FDI for India?

(A) USA (B) Mauritius (C)Singapore (D) Japan

2. In recent years which sector has dominated FDI inflows in India? 

(A) Computer Software and Hardware (B) Chemicals (C) Tourism (D) Agriculture 

3. Which of the following is true about the immediate impact of globalisation initiated in 1991?

(A) Increase in informalisation of the economy

(B) Effective access to foreign markets

(C) Decrease in income inequalities

(D) None of the above 

4. Which of the following is the main role of the Reserve Bank of India?

(A) To maintain financial stability

(B) To promote agricultural growth

(C) To Promote banking habits among the people of the country

(D) To maintain regional balance in the development of the Indian economy 

5. In which of the following industries Indian women are mostly employed?

(A) Textile and garment industry (B) Jute industry (C) Sugar industry (D) Paper industry 

6. Indian investments abroad are mainly in

(A) South-East Asia (B) South Asia (C) Europe (D) USA 

7. The Finance Commission is constituted by the President every

(A) 10 years (B) 5 years (C) 2 years (D) 12 years 

8. Who is the Chairman of the 15th Finance Commission? 

(A) C. R. Rangarajan (B) N. K. Singh (C) Y. V. Reddy (D) Bimal Jalan 

9. Inclusive growth is that process of growth

(A) where all people participate and benefit equitably.

(B) where financial inclusion dominates.

(C) where social inclusion dominates.

(D) where poorer people get all the benefits. 

10. Which of the following was an argument in favour of globalisation in 1991?

(A) Promotion of Foreign Direct Investment

(B) Boosting Agricultural Growth

(C) Alleviation of Poverty

(D) Promotion of Indigenous Technology 

11. The LPG model of development was introduced in India in the year

(A) 2001 (B)1991 (C) 1990 (D) 1981

1.The practice of using fiscal and monetary policy to stabilize the economy is known as

(A) Supply side economics

(B) Fine tuning of demand 

(C) Monetarism 

(D) Laissez-Faire economics 

2. Find the odd one in the following list

(A) It maintains macroeconomic stability.

(B) The Finance Commission reviews the state of finances of the Union and the States.

(C) It looks into the growing disparity between the urban and rural population.

(D) It suggests a plan for restructuring public finances.

3. Which of the following represents the most expansionary fiscal policy?

(A) Rs.10 billion tax cut

(B) Rs.10 billion tax increase

(C) Rs.10 billion decrease in government spending

(D) Rs.10 billion increase in government spending

4. The Union Government has accepted the recommendations made by the Fifteenth Finance Commission (XV-FC) in its Report for the award period 2021-22 to 2025-26 relating to the grants-in-aid to the States amounting to

(A) Rs.2,33,333 crore 

(B) Rs.2,50,000 crore

(C) Rs.2,00,000 crore

(D) Rs.3,00,000 crore

5. Deficit financing is akin to

(A) the expenditure which is in excess of current revenue and public borrowing.

(B) financing the budgetary deficit through public loans and creation of new money.

(C) Both (A) and (B)

(D) None of the above 

1.Which among the following formulates fiscal policy

(A) RBI

(B) Finance Ministry

(C) SEBI

(D) Planning Commission

1.Deficit financing is strongly inflationary when

(A) Govt. takes loan from the RBI

(B) Govt. takes loan from the capital market

(C) Govt. borrows from commercial banks

(D) Govt. mobilises small savings from the market

2.Long-term loan to the corporate sector usually comes from

(A) Commercial banks             (B) NABARD    (C) Lead Banks      (D) Capital market

3.Financial Reforms Committee recommended _______

(A) Administered rate of interest

(B) Deregulation of rate of interest

(C) More loan to non-profitable priority sector

(D) Both (B) and (C)

4.Devaluation of Indian currency in 1991 was expected to have this effect :

(A) Decline in exports

(B) Increase in exports

(C) Decline in exports and imports

(D) Increase in imports

1.The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential informations is knows as

(A) Bull market            (B) Bear market        (C) Insider trading        (D) Initial Public Offering (IPO)

2.Fully automated screen based trading system NSE is known as

(A) BOLT       (3) NEAT           (C) ALBM         (D) BLISS

3. The instruments issued by registered FIIS to overseas investors, who wish to invest in Indian stock markets without registering themselves with SEBI - known as

(A) Certificates of Deposit (CDs)

(B) Participatory notes (P-notes)

(C) Currency Derivatives

(D) Foreign exchange reserves

1.Which of the following three general insurance companies will be merged into single insurance company as per Budget 2018-19 ?

(A) UTI, Oriental Insurance and National Insurance

(B) LIC, Bharti AXA and United Insurance

(C) General Insurance, Max Bupa and UTI

(D) Agriculture Insurance Company of India Limited, Bharti AXA and United Insurance

2.The oldest stock market of India is

(A) Bombay Stock Exchange

(B) Ahmedabad Stock Exchange

(C) Bengalore Stock Exchange

(D) Hyderabad Stock Exchange

3.If the government chooses to spend money freshly printed by the RBI against government securities, it should be kept in which among the following ?

(A) Fiscal adjustment     (B) Deficit financing            (C) Mandatory spending       (D) Retrenchment

4.Which among the following formulates fiscal policy ?

(A) RBI      (B) Finance Ministry       (C) SEBI            (D) Planning Commission

1.What kind of convertability of currency is permitted in India ?

(A) Capital account    (B) Current account     (C) Both (A) and (B)     (D) Partial in both (A) and (B)

2.The Narsimham Committee on the Financial System of India made its recommendations in two phases

(A) 1991 and 1999      (B) 1991 and 1998      (C) 1990 and 1999      (D) 1990 and 1998

1.The market for transaction of Government Securities is called -

(A) Gilt-edged market            (B) Industrial Securities market           (C) Call money market      (D) None of the above

2.Sensitive Index or Sensex represents the prices of shares of the main —— shares in the stock exchange.

(A) 40 shares       (B) 30 shares          (C) 50 shares              (D) 60 shares

3.Which of the following is not advantage of full capital account convertability ?

(A) Encourages import        (B) Boosts exports       (C) Easy access to forex

(D) Promotes trade and capital flows between nations

4.Which of the following is not included under the money market ?

(A) RBI             (B) Commercial Banks         (C) SEBI             (D) None of the above

1.Which of the following is not correct ?

(A) Credit rating is done to assess the credit worthiness of the prospective borrower

(B) It is done in case of individuals and even countries

(C) Equity share is rated in the rating

(D) Ratings are an investor service

1.Dalal Street is situated at

(A) Amritsar    (B) New Delhi        (C) Mumbai           (D) Chandigarh

2.The number of approved share markets in India

(A) 19      (B) 20       (C) 23        (D) 24

3.The percentage share of services in GDP at factor cost (at current prices) in 2013-14 in Indian Economy -

(A) 51 %          (B) 47 %        (C) 57 %            (D) 60 %