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1. In Law of Demand, the demand curve is:

a. Downward sloping

b. Upward sloping

c. Horizontal to the X axis

d. U shaped

2. The measures national income as total spending on final goods and services produced within nation during a year.

a. Turnover Method

b. Product Method

c. Income Method

d. Expenditure Method

3. Under comes the expenditure incurred by private enterprise on new investment and on replacement of old capital.

a. Gross Domestic Private Investment.

b. Net Domestic Private Investment.

c. Total Domestic Private Investment.

d. Accumulated Domestic Private Investment.

4. If percentage change in quantity demanded is 10% and percentage change in price is 5%, then price elasticity of demand will be:

a. 2

b. 1

c. 0.5

d. 4

5. If Net Value Added at Factor Cost = INR 2 Cr. and Depreciation is INR 1 Cr., then GDP at Factor Cost will be:

a. INR 3 Cr.

b. INR 1 Cr.

c. INR 4 Cr.

d. INR 5 Cr.

6. If GDP at Market Prices is INR 200 Cr. and Net Income from Abroad is INR 100 Cr., then what will be the value of GNP at Market Prices?

a. INR 100 Cr.

b. INR 400 Cr

c. INR 300 Cr.

d. INR 500 Cr.

7. From the following information, compute price elasticity of demand: Original Quantity = 20 units

Original Price = Rs. 50 Change in Quantity = 10 units Change in Price = Rs. 20

a. 0.25

b. 2.25

c. 3.25

d. 1.25

8. All revenues raised by the government, money borrowed and receipts from loans given by the government flow into the .

a. Annual Financial Statement

b. Contingency Fund

c. Consolidated Fund of India

d. Public Account

9. The proposals of the government for levy of new taxes, modification of existing tax structure or continuance of the existing tax structure beyond the period approved by Parliament are submitted to Parliament through

a. Appropriation Bill

b. Finance Bill

c. Ordinary Bill

d. None of the above

10. The e-Form ‘AGILE’ is related to:

a. Application for registration of the Goods and Services Tax Identification Number.

b. Application for registration of the Goods and Sales Tax Innovative Number.

c. Application for registration of the Goods and Services Tax Innovative Number.

d. Application for registration of the Goods and Sales Tax Identification Number.

11. In which of the following scenario, the Cross Elasticity between two commodities X and Y will be ‘Zero’?

a. Commodity X is nearly a perfect substitute for commodity Y.

b. Commodities X and Y are complementary.

c. Commodity X and Y are not related.

d. Commodity X is superior to Commodity Y.

12. for flows for those transactions where the government merely acts as a banker.

a. Contingency Fund

b. Profit and Loss Account

c. Consolidated Fund

d. Public Account

13. Loan obtained from the Reserve Bank of India (RBI) by the Government of India will be covered under which of the following?

a. Capital Budget.

b. Revenue Budget.

c. Cash Budget.

d. Defence Budget.

14. Which of the following organization took over the regulatory and administrative control of UTI from the Reserve Bank of India (RBI) in 1978?

a. Small Industries Development Bank of India (SIDBI).

b. Industrial Finance Corporation of India (IFCI).

c. State Bank of India (SBI).

d. Industrial Development Bank of India (IDBI).

15. The impact of business environment may differ from company to company or country to country. This is covered under which of the following features of business environment?

a. Dynamic

b. Uncertainty

c. Relativity

d. Complex

16. Competition Commission of India is affiliated to which of the following ministries?

a. Ministry of Corporate Affairs

b. Ministry of Finance

c. Ministry of Statistics and Programme Implementation

d. Ministry of Law & Justice

17. “No change in the goals of the firm” is the assumption of which of the following laws of economics ?

a. Law of Supply

b. Law of Diminishing Marginal Utility

c. Law of Demand

d. Law of Increasing Returns to Scale.

18. Which of the following formula to be used for deriving GNP at Market Prices?

a. NNP at Market Prices + Depreciation

b. NNP at Market Prices – Depreciation

c. NNP at Factor Cost + Depreciation

d. GNP at Factor Cost – Depreciation.

19. Commercial Banks are regulated under the and their business model is designed to make profit.

a. Negotiable Instruments Act, 1881

b. Indian Contract Act, 1872

c. Banking Regulation Act, 1949

d. Essential Commodities Act, 1955

20. Which of the following is not the objectives of the Competition Commission of India?

a. To prevent practices having adverse effect on competition.

b. To promote manipulative trade practices.

c. To promote and sustain competition in markets.

d. To ensure freedom of trade.

21. In which of the following case / cases, the law of demand is not applicable?

a. Giffen Goods

b. Articles of Snob Appeal

c. Speculation

d. All of the above

22. The method of national income measures the contribution of each producing enterprise in the domestic territory of the country.

a. Income

b. Expenditure

c. Product

d. Turnover

23. Gifts, donations and scholarships are which form of payments?

a. Factor Payments

b. Explicit Payments

c. Implicit Payments

d. Transfer Payments

24. Which of the following is not the method of measuring national income?

a. Product Method

b. Income Method

c. Profit Method

d. Expenditure Method

25. If the revenue expense is more than that of receipts, it indicates that there is a


a. Revenue deficit

b. Capital deficit

c. Total deficit

d. Chronic deficit

26. What is the long form of ULIPs?

a. United Linked Insurance Processes.

b. Unit Linked Insurance Processes.

c. Unit Locked Insurance Plans.

d. Unit Linked Insurance Plans.

27. Which of the following is/are covered under the gamut of activities of NITI Aayog?

a. Design Policy & Programme Framework.

b. Foster Cooperative Federalism.

c. Monitoring & Evaluation.

d. All of the above.

28. Pinnacle limited incurred capital expenditure of INR 200 Crores in setting up of a new plant. The mentioned capital expenditure will be considered for computation of national income under which of the following methods?

a. Product Method

b. Expenditure Method

c. Income Method

d. Turnover Method

29. Which of the following banks were not established by British East India Company?

a. Bank of Bengal

b. Bank of Bombay

c. Bank of Madras

d. Bank of Baroda

30. The is the difference between the monetary value of exports and imports of output in an economy over a certain period of time.

a. Balance of trade

b. Balance of payment

c. Balance of national accounts

d. Balance of Consolidated Fund of India

31. Which of the following is not the need for having entrepreneurs in India?

a. Entrepreneurs promote capital formation by mobilising the idle saving of the people.

b. They promote balanced regional development by establishing small-scale enterprises in rural, remote and less developed regions.

c. They help in reducing the concentration of economic power.

d. They help in promoting monopoly.

32. If a company is sued over data breach of confidential information, a business may need to change how information is collected and stored. This is covered under which of the following?

a. Political environment

b. Economic environment

c. Technological environment

d. Social environment

33. Consider the following functions:

i) Issuers of the Securities

ii) Protects the Interests of Traders & Investors

iii) Financial Intermediaries

Which of the following organisations perform the aforesaid functions?

a. Securities and Exchange Board of India

b. Reserve Bank of India

c. National Stock Exchange (NSE Ltd.)

d. Ministry of Finance

34. The Central Office of the Reserve Bank was initially established in but was permanently moved to Mumbai in 1937.

a. Hyderabad

b. Calcutta

c. Madras

d. Ahmedabad

35. When a company situated in one country makes an investment in a company situated abroad, it is known as

a. Foreign Portfolio Investment

b. Foreign Direct Investment

c. Foreign donation

d. Foreign grant

Q.NO. Ans. Q.NO. Ans.

11 c 31 d

12 d 32 c

13 a 33 a

14 d 34 b

15 c 35 b

16 a

17 a

18 a

19 c

20 b

1 a 21 d

2 d 22 c

3 a 23 d

4 a 24 c

5 a 25 a

6 c 26 d

7 d 27 d

8 c 28 b

9 b 29 d

10 a 30 a

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