Economics MCQ – 3

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Economics MCQ 3

1. LIC stands for

a. Life Insurance Company
b. Life Insurance Corporation
c. Life Insurance Customers
d. Life Insurance Co-operation

2. LIC was established in the year

a. 1956
b. 1957
c. 1959
d. 1960

3. Abbreviation “GIC” when expanded is “General Insurance Company”.

a. True
b. False

4. GIC was established in the year

a. 1975
b. 1977
c. 1972
d. 1971

5. What is Gilt-Edged Market?

a. Market of government securities
b. Bullion market
c. Market dealing with metals
d. Market dealing with exports

6. Net addition to stock after depreciation is a definition for “Gross domestic capital formation”

a. True
b. False

7. State Financial Corporation primarily, gives assistance to

a. Irrigation projects
b. small-scale industries
c. medium-scale industries
d. medium and small-scale industries

8. Commercial taxes contribute to maximum revenue for states.

a. True
b. False

9. National Savings Certificate is not a debt.

a. True
b. False

10. Deficit financing means that the government borrows money from the

a. Revenue Department
b. World Bank
c. RBI
d. None of above

11. The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called Statutory Liquid Ratio

a. True
b. False

12. Inflation in India is measured by

a. National Income Deflation
b. Wholesale Price Index number
c. Consumer Price Index
d. None of above

13. Short term finance is generally a period of

a. 2 years
b. 1 Year
c. 6 months
d. 3 months

14. Fiscal Policies are formulated by ______ in India

a. Finance Commission
b. Ministry of Finance
c. Planning Commission
d. The RBI

15. Paper Currency for India started in year

a. 1860
b. 1861
c. 1872
d. 1873

16. Devaluation of currency leads to fall in domestic prices

a. True
b. False

17. Most important source of income for India is

a. Interest
b. License fee
c. Income tax
d. Excise duty

18. Out of the below options, which mineral does India largely import

a. Iron Ore
b. Bauxite
c. Mica
d. Mercury

19. NRDI (National Rural Development Institute) is located in the city

a. Delhi
b. Hyderabad
c. Mumbai
d. Pune

20. Out of the below, who have won a Nobel prize for economics

a. Mother Teressa
b. Amarthiya Sen
c. C.V.Raman
d. None of above

21. SBI has the largest number of branches in the world.

a. True
b. False

22. State bank of India was formerly known as

a. UBI
b. Central Bank of India
c. Imperial Bank of India
d. PNB

23. Where is excise duty levied?

a. Sale of an item
b. Production of an item
c. Consumption of an item
d. All of above

24. Who chose the new symbol for rupee?

a. Prime Minister
b. President
c. Union Cabinet
d. RBI

25. Which year, did the new symbol for rupee get formally announced?

a. 2009
b. 2010
c. 2011
d. 2008

26. Sales tax is classified as

a. Direct Tax
b. Indirect Tax
c. Tax imposed by central government
d. Tax imposed by state government

27. Examples of direct taxes are Income Tax, Property Tax, Gift Tax

a. True
b. False

28. In which year did Iron and steel industry start in India?

a. 1855
b. 1860
c. 1865
d. 1870

29. India is not the largest producer of sponge iron in the world.

a. True
b. False

30. What is FEMA ?

a. First Exchange Management Act
b. Foreign Exchequer Management Act
c. Foreign Exchange Management Act
d. Foreign Evaluation Management Act

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