MULTIPLE CHOICE QUESTIONS ON BANKING, FINANCE AND ECONOMY

Test Paper- 5
1. Which of the following is not helpful in controlling money supply?
a.
b.
c.
d.

Free Market Policy

CRR
Bank Rate
Change in margin requirement

2. Which city is known as Electronic City?

a.
b.
c.
d.

Gurgaon
Bangalore
Jaipur
Salem (Tamil Nadu)

3. Corporate Tax is imposed by

a.
b.
c.
d.

State Government
Local Government
Central Government
Both Centre and State Government

4. According to Banking Regulation Act, RBI can fix SLR upto the ceiling of
a.
b.
c.
d.

40%
50%
30%
45%

5. TRIPS Trade Related Intellectual Property Right and TRIMS Trade Related
Investment Measures are associated with
a.
b.
c.
d.

Preston Proposal
Dunkel Proposal
Chelliah Committee
None of these

6. Which sector has the maximum quantum of disguised unemployment in India?

a.
b.
c.
d.

Agriculture
Industry
Trade
Transport

7. Scheduled Bank is that bank which is

a.
b.
c.
d.

Nationalised
Not Nationalised
Based in the foreign country
Included in the second schedule of RBI

8. Which direct tax gives maximum revenue to the Government?

a.
b.
c.
d.

Corporate Tax
Income Tax
Wealth Tax
Gift Tax

9. CRISIL ____
a.
b.
c.
d.

Evaluates the credit documents of a company

Provides financial assistance to industries
Provides finance for rural areas
Promotes exports

10. The headquarters of IMF is in

a.
b.
c.
d.

New York
Washington D.C
London
Manila

11. Population density means

a.
b.
c.
d.

No. of persons living per Square Kilometre

No. of persons living per kilometer
Ratio of population living below poverty line to total population
No of persons in a village

12. National Income in India is estimated by

a.
b.
c.
d.

Planning Commission
Finance Commission
Indian Statistical Institute
Central Statistical Organisation

13. What is Super 301?

a.
b.
c.
d.

Name of modern computer.

A new variety of rice.
American Trade Law
American treatment name for AIDS

14. Greshams law is related to

a.
b.
c.
d.

Consumption and Demand

Supply and Demand
Circulation of money
Deficit financing.

15. Closed Economy is that economy in which ____

a.
b.
c.
d.

Only export takes place

Money supply is fully controlled
Deficit financing takes place
Neither export nor import takes place

16. What is Stagflation?

a.
b.
c.
d.

Inflation with growth

Deflation with growth
Inflation after deflations
Inflation with depression

17. At present the share of Indian Foreign Trade in World Trade is

a.
b.
c.
d.

Below 0.50%
Between 0.50% to 1.00%
Between 1.0% to 1.50%
Above 1.50%

18. RBI was nationalized in

a.
b.
c.
d.

1959
1947
1945
1949

19. Inside trading is related to

a.
b.
c.
d.

Share Market
Horse Racing
Taxation
Public Expenditure

20. Mixed Economy means

a.
b.
c.
d.

Co existence of small and large industries

Promoting both agriculture and industry in the economy
Co-existence of public and private sectors
Co-existence of rich and poor

21. What is Nikkei?

a.
b.
c.
d.

Share price index of Tokyo Share market

Name of Japanese Central Bank
Japanese name of Countrys Planning Commission
Foreign exchange market of Japan

22. Which one of the following is NOT a Central Tax?

a.
b.
c.
d.

Sales Tax
Income Tax
Excise Duty
Customs Duty

23. Who is the Chairman of the Planning Commission

a.
b.
c.
d.

Reserve Bank Governor

Prime Minister of India
President of India
Finance Minister

24. Which of the following committees has recommended that a part of foreign exchange
reserves should be used for infrastructural development?
a.
b.
c.
d.

Parekh Committee
Rakesh Mohan Committee
Mehta Committee
Rangarajan Committee

25. As per the data released recently by various agencies the direct taxes contribute to how
much percentage of central revenues?
a.
b.
c.
d.

30%
40%
45%
50%

26. As per RBI directives which of the following functions cannot be outsourced by the
Banks?
a.
b.
c.
d.

Opening and closing of accounts

Cash collection from the parties
Recovery of bad loans
Credit Cards and Debit Cards

27. Which one of the following is not a constitutional body?

a.
b.
c.
d.

Election Commission
Finance Commission
Planning Commission
Union Public Service Commission

28. The term Green GNP emphasizes

a.
b.
c.
d.

rapid growth of GNP

increase in per capita income
economic development
sustainable development

29. The World Trade Organisation (WTO) was earlier known as

a.
b.
c.
d.

GATT
UNICEF
UNCTAD
FAO

30. The difference between visible exports and visible imports is defined as
a.
b.
c.
d.

Balance of Trade
Balance of payment
Balanced Terms of trade
Gains from trade

31. What is Value Added Tax?

a. A simple transparent easy to pay tax imposed on consumers
b. A new initiative taken by the government to increase the tax burden of high income
group
c. A single tax that replaces state taxes like surcharge, turnover tax etc
d. A new tax to be imposed on the producers of capital goods
32. The outcome of devaluation of currency is
a.
b.
c.
d.

increased export and improvement in balance of payment

increased export and foreign reserve deficiency
increased import and improvement in balance of payment
increased export and import

33. What is referred to as Depository Services

a.
b.
c.
d.

a new scheme of fixed deposits

a method of regulating stock exchanges
an agency for safe keeping of securities
an advisory service to investors

34. In India yellow revolution is associated with

a.
b.
c.
d.

production of paddy
production of oilseeds
production of tea
production of flower

35. Which state has the lowest per capital income in India?
a.
b.
c.
d.

Orissa
Bihar
Rajasthan
Gujarat

36. Which of the following, the biggest passenger airlines in the world, came to India
recently?
a.
b.
c.
d.

Airbus A 330
Airbus A 350
Airbus A 380
Airbus A 360

37. Which of the following is not a Fundamental Right?

a.
b.
c.
d.

Right to Equality
Right to Property
Right to Freedom
Right to Constitutional remedies

KEY
1. A
2. B
3. C
4. A
5. B
6. A
7. D
8. A
9. A
10. B
11. A
12. D
13. C
14. C
15. D
16. D
17. B
18. D
19. A
20. C
21. A
22. A
23. B
24. A
25. B
26. A
27. C
28. C
29. A
30. A
31. C
32. A
33. C
34. B
35. A
36. C
37. B