Economics MCQ for CSEET

1.The base year for the calculation of all-India Index of Industrial Production (IIP) is: 2004-05 2005-06 2010-11 2011-12 Correct Answer: D <2011-12> Notes: The CSO had revised the base year of the IIP from 2004-05 to 2011-12 in May 2017 to capture structural changes in economy and improves quality and representativeness of indices. The revised IIP (2011-12) reflects the changes in industrial sector and also aligns it with base year of other macroeconomic indicators like Wholesale Price Index (WPI) and Gross Domestic Product (GDP).

2.When a person has a saving account in the bank , the bank assumes the position of _? Debtor Creditor Agency Depositor Correct Answer: A Notes: please note bank functions as an agent or agency when it buys or sells securities on behalf of the customer or collects and makes payment on behalf of the customer

3.In which industry Gazprom operates? Steel Pharmaceuticals Oil and natural Gas Infrastructure and Real estate

Correct Answer: C Notes: Gazprom is the largest extractor of natural gas in the world and the largest Russian company. Gazprom was created in 1989 when the Ministry of Gas Industry of the Soviet Union transformed itself into a corporation, keeping all its assets intact.

4.Which among the following is a opposite activity of hedging in share / currency /future markets? arbitrage speculation spread short Correct Answer: B

5.Which among the following are covered in the statistical tables of RBI? Liabilities & assets Income & expenses Non performing assets All the above Correct Answer: D

6.What is the main motive of the government behind having a dual price system & setting up of fair price shops? To demote speculation and hoarding To incentivise the trading of essential commodities To eliminate the monopoly of the traders and speculators To make the essential commodities available to the weaker sections of the society Correct Answer: D

7.In context with the banking business, which among the following is a correct definition of liquidity risk? Risk arising from funding of long term assets by short term liabilities or funding of short term assets by long term liabilities Risk arising from adverse movement of interest rates during a liquidity crunch in the markets Risk arising from the adverse movement of the value of the assets /investments etc. Risk arising from a party becoming defaulter Correct Answer: A [Risk arising from funding of long term assets by short term liabilities or funding of short term assets by long term liabilities

8.The term “TDSAT” refers to which among the following ? A Satellite A Tribunal A Telecom Company A Society Correct Answer: B Notes: TELECOM DISPUTES SETTLEMENT & APPELLATE TRIBUNAL

9.Which among the following is popularly known as mercantile law of India ? Contract Law Law of Torts Labour Law Property Law Correct Answer: A

10.Who among the following heads the Trade and Economic Relations Committee (TERC) in India? Prime Minister Minister of Commerce Finance Minister Finance Secretary Correct Answer: A

11. In which year, after independence, notes in denominations of Rs. 1,000, Rs. 5,000 and Rs. 10,000 were reintroduced in India? 1947 1950 1952 1954 Correct Answer: D <1954>

12.A Public Debt Office works as investment banker to the _? Public Commercial Banks RBI Government Correct Answer: D

13. One of the economic laws says that as incomes increase, the proportion of starchy staples in the food basket declines relative to the share of more expensive sources of calories. What this hypothesis is known as ?

Engel’s Law Bennet’s Law Campbell’s law Gresham’s law Correct Answer: B

14. Consider the following statements:

UN Democracy Fund (UNDEF) was launched in 2005 India is largest contributor to UN Democracy Fund (UNDEF) Which among the above statements is / are correct? Only 1 Only 2 Both 1 & 2 Neither 1 nor 2 Correct Answer: A Notes: UNDEF was launched in 2005 by Indian PM Manmohan Singh, the then US President George Bush and former UN Secretary General Kofi Annan in New York in for furtherance of demo-cratic values. India is the second largest contributor to the UNDEF.

15. Consider the following statements: Bulk of employment in India is in rural areas. The disguised unemployment in agricultural sector is perennial. Industrialization has rendered several people jobless in India. Which of the statement(s) given above is/are correct ?

1 and 2 1 and 3 2 and 3 1, 2 and 3 Correct Answer: A <1 and 2>

16. Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Economic growth of India? Service>Industry>Agriculture Service>Agriculture>Industry Industry>Service>Agriculture Industry>Agriculture>Service Correct Answer: A [ Service>Industry>Agriculture ] Notes: In the last decade, growth has increasingly come from the services sector, whose contribution to overall growth of the economy has been 65 per cent, while that of the industry and agriculture sectors has been 27 per cent and 8 per cent respectively