CSEET ECONOMICS IMPORTANT MCQs

1.India’s economy is now considered to be a service sector driven economy. The service sector is often categorized into Market services and non-market services. Which of the following is an example of non-market services?

Lodging

Catering

Repair

Health

Answer : D

Notes:

Market services Market services are provided by market producers. Market services include services such as repair services, lodging and catering services etc. Non-Market services Non market services are provided by non-market producers. These include health services, education and research, general public services etc.

2. Identify the environmental treaty with the help of given information:

1. It is the only environmental treaty which enjoys universal ratification of 197 UN member countries.

2. The United Nations Industrial Development Organization (UNIDO) is the implementing agency of the this treaty

3. In September, 2017 the treaty celebrated its 30thAnniversary

Select the Answer from options given below:

Rotterdam Convention

Stockholm Convention

Kyoto Protocol

Montreal Protocol

Answer : D

Notes:

The Montreal Protocol on Substances that Deplete the Ozone Layer is an environmental treaty that was adopted on September 16, 1987 by the international community to protect human health and the environment by phasing out a number of man-made chemicals with adverse effects on the ozone. Initially, it included refrigerants such as CFCs and halons, but the list of controlled chemicals under the Montreal Protocol today includes HCFCs, methyl bromide, and other ozone-depleting substances (ODS). The United Nations Industrial Development Organization (UNIDO) became an implementing agency of the Montreal Protocol in 1992. In 2010, it became the only environmental treaty which enjoys universal ratification of 197 UN member countries. Recently, in September 2017, it celebrated its 30th anniversary.

1. Consider the following differences between Closed System Payment Instruments and Open System Payment Instruments:

2. While the Open System Payment Instruments permit cash withdrawal, Closed System Payment Instruments do not permit cash withdrawal

3. While the Open System Payment Instruments can be issued only by RBI, Closed System Payment Instruments can be issued by NBFC and other entities

Which of the above statements is/are correct?

1 Only

2 Only

Both 1 & 2

Neither 1 nor 2

Answer : C

Notes:

Both are correct statements

4. Which of the following is/are used by the government as fiscal policy in order to combat inflation?

1. Increase in Repo rate

2. Reduction in public expenditure

3. Issue of treasury bills

Select the correct option from the codes given below:

1 & 2 Only

3 Only

2 & 3 Only

1, 2 & 3

Answer : C <2 & 3 only>

Notes:

Money is borrowed by the government through issuance of securities, bonds and bills. Treasury bills (T-bills) offer short-term investment opportunities. The Government of India issues three types of treasury bills through auctions, namely, 91-day, 182-day and 364-day. When government borrows from market it reduces money in the hands of public and thus reduces spending which in turn helps to combat inflation. Government when reduces its public expenditures such as pension, provision, infrastructure, subsidies etc. then again it helps to curb inflation. Increase or decrease in Repo rate is a monetary policy carried by the central bank.

5. Which of the following is not a proposed Industrial Corridor Project in India?

Ranchi-Chennai Industrial Corridor (RCIC)

Chennai- Bengaluru Industrial Corridor (CBIC)

Bengaluru-Mumbai Industrial Corridor (BMIC)

Amritsar-Kolkata Industrial Corridor (AKIC)

Answer : A

Notes:

As of now, five Industrial corridors have been proposed which would pass through the States, namely, Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, West Bengal, Madhya Pradesh, Rajasthan, Gujarat, Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu. For effective implementation of the project, the Government of India has accorded approval for setting up the National Industrial Corridor Development and Implementation Trust (NICDIT). NICDIT will function under the administrative control of the Department of Industrial Policy and Promotion. It will channelize the funds to ensure proper construction of the proposed industrial corridor. The five proposed ICs are Delhi Mumbai Industrial Corridor (DMIC); Chennai- Bengaluru Industrial Corridor (CBIC); Bengaluru Mumbai Economic Corridor (BMEC); Amritsar-Kolkata Industrial Corridor (AKIC) & Vizag Chennai Industrial Corridor (VCIC).

6. Consider the following differences between International Monetary Fund and World Bank:

1. While main task of World Bank is to fight poverty, IMF aims to economically strengthen its member countries.

2. While IMF provides only short term loans, World Bank provides both short term and long term loans.

Which of the above statements is/are correct?

1 Only

2 Only

Both 1 and 2

Neither 1 nor 2

Answer : C

Notes:

Both the statements are correct.

7. With respect to Kisan Credit Card, which of the following statements is/are true?

1. Kisan Credit Card scheme is implemented by public sector banks, private commercial banks, RRBs and cooperative banks.

2. Kisan Credit Card loans can be used for only purchasing farm inputs; no personal consumption purchases are allowed.

3. Each withdrawals is to be repaid within a maximum period of 12 months

4. Kisan Credit Card holders are covered by a personal accident insurance

Select the correct option from the codes given below:

1, 2 & 3

1, 2 & 4

1, 2, 3 & 4

1, 3 & 4

Answer : D <1, 3 & 4>

Notes:

Kisan Credit Card loans can be used for only purchasing farm inputs (seeds, fertilizers) as well as personal consumption and contingency needs.

8. Depending upon the performance, certain public sector companies in India are given Maharatna status. What enhanced powers are available to these companies with Maharatna status?

1. A Maharatna can invest up to Rs. 5000 crores in a single project without seeking government approval.

2. A Maharatna can create posts up to Executive Director level

Select the correct option from the codes given below:

Only 1

Only 2

Both 1 & 2

Neither 1 nor 2

Answer : C

Notes:

The Government has introduced the Maharatna scheme in February, 2010 with the objective to delegate enhanced powers to the Boards of identified large sizes Navratna CPSEs so as to facilitate expansion of their operations, both in domestic as well as global markets. The Maharatna CPSEs in addition to having Navratna powers, have been delegated additional powers in the area of investment in joint ventures/subsidiaries and human resources development. The Maharatna CPSEs can invest Rs. 5000 crores in one project and create below Board level posts upto E-9 level (ie, upto Executive Director level). The Government has conferred Maharatna status to 7 CPSEs namely, (i) Bharat Heavy Electricals, (ii) Coal India Ltd. (iii) GAIL India Ltd. (iv) Indian Oil Corporation Limited, (v) NTPC Limited, (vi) Oil & Natural Gas Corporation Limited and (vii) Steel Authority of India Limited.

9. What is India’s rank in terms of PPP?

First

Fourth

Second

Third

Answer : D

Notes:

Top 5 countries in GDP(PPP):

1. China

2. USA

3. India

4. Japan

5. Germany

10. Who has the sole authority to issue currency in India?

Finance Ministry

RBI

SBI

NITI Aayog

Answer : B

Notes:

The Reserve Bank is the issuer of currency. The Reserve Bank is the nation’s sole note-issuing authority. Along with the Government of India, they are responsible for the design, production, and overall management of the nation’s currency, with the goal of ensuring an adequate supply of clean and genuine notes.

11. Which five-year plan added Highways to Indian infrastructure?

5th

6th

7th

4th

Answer : A <5th>

Notes:

During the Fifth five year plan from 1974-79, a twenty-point program was launched. The Indian national highway system was introduced and many roads were widened to accommodate the increasing traffic. Tourism also expanded.

12. When was the National Development council constituted?

16-Aug-52

6-Aug-51

6-Aug-52

26-Aug-53

Answer : C <6-aug-52>

Notes:

National Development Council (NDC) was established on 6th August 1952. It is an executive body established by the Government of India, neither a constitutional body nor statutory. It is the apex body to take decisions on matters related to approval of five-year plans of the country. The Prime minister is the ex-officio chairman of the NDC.

13. Which of the following are correct regarding NITI Aayog?

1. NITI Aayog vice-chairman will get the Cabinet minister’s rank and pay.

2. Members of the NITI Aayog will be of the rank and status of ministers of state at the Centre.

Choose the correct option from the choices given below:

Only 1

Only 2

Both 1 and 2

None

Answer : C

Notes:

The NITI or the National Institution for Transforming India was created after abolishing the decades-old Planning Commission of India. It is a policy think tank of the Government of India, established with the aim to achieve sustainable development goals with cooperative federalism by fostering the involvement of State Governments of India in the economic policy-making process using a bottom-up approach. It has a Vice-Chairman and other members.

14. Which of the following is correct about NITI Aayog?

NITI Aayog was Formed 25 January 2016

NITI Aayog comes under the Ministry of Commerce and Industry

The full form of NITI Aayog is National institute for Technical Initiatives

The NITI Aayog is a policy think tank of the Government of India

Answer : D

Notes:

The NITI Aayog is a policy think tank of the Government of India. It replaced the Planning Commission. The full form of NITI Aayog is National Institute for Transforming India.

15. Which organization releases a composite water management index?

NITI Aayog

Ministry of water resources

World bank

World Economic forum

Answer : A

Notes:

NITI Aayog first launched and conceptualized the Composite Water Management Index in 2018 as a tool to instill a sense of cooperative and competitive federalism among the states. The CWMI is an important tool to assess and improve the performance of States/ Union Territories’ inefficient management of water resources.

16. Which of the following is correct regarding eNAM?

eNAM is a fertilizer distribution app

eNAM is a direct benefit transfer scheme for farmers

eNAM is an electronic trading portal for farmers

None of the above

Answer : C

Notes:

National Agriculture Market (eNAM) is a pan-India electronic trading portal which networks the existing APMC mandis to create a unified national market for agricultural commodities.