********(Important Economy Quiz)******** 1. Development expenditure of the Central government does not include A. defence expenditure B. expenditure on economic services C. expenditure on social and community services D. grant to states Ans - expenditure on economic services 2. Gilt-edged market means A. bullion market B. market of government securities C. market of guns D. market of pure metals Ans - market of government securities 3. Depreciation means A. closure of a plant due to lock out B. closure of a plant due to labour trouble C. loss of equipment over time due to wear and tear D. destruction of a plant in a fire accident Ans - loss of equipment over time due to wear and tear 4. Deficit financing leads to inflation in general, but it can be checked if A. government expenditure leads to increase in the aggregate supply in ratio of aggregate demand B. only aggregate demand is increased C. all the expenditure is denoted national debt payment only D. All of the above Ans - All of the above 5. If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits A. will decrease B. will increase C. will neither increase nor decrease D. None of the above Ans - will neither increase nor decrease 6. India changed over to the decimal system of coinage in A. April 1995 B. April 1957 C. April 1958 D. April 1959 Ans - April 1957 7. The association of the rupee with pound sterling as the intervention currency was broken in A. 1990 B. 1991 C. 1992 D. 1993 Ans – 1992 8. On which one of the followings is the benefits received principle of taxation to achieve optimality bases? A. Marginal benefit received B. Total benefit received C. Average benefit received D. Ability to pay for the benefit Ans - Ability to pay for the benefit 9.Gross domestic capital formation is defined as A. flow of expenditure devoted to increased or maintaining of the capital stock B. expenditure incurred on physical assets only C. production exceeding demand D. net addition to stock after depreciation Ans - net addition to stock after depreciation 10. On July 12, 1982, the ARDC was merged into A. RBI B. NABARD C. EXIM Bank D. None of the above Ans - NABARD
Posted on: Sat, 03 May 2014 05:26:40 +0000
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