INDIAN ECONOMY
1 .
Devaluation of a currency means
A)
reduction in the value of a currency vis-a-vis major internationally traded currencies
B)
permitting the currency to seek its worth in the international market
C)
fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies
D)
fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners

Correct Answer : Option (A) - reduction in the value of a currency vis-a-vis major internationally traded currencies

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2 .
In utensils worth Rs 1000 are produced with copper worth Rs 500, wages paid are Rs 100, other material purchased is worth Rs 100 and depreciation of machinery is zero, then what is the value added in process?
A)
Rs 1000
B)
Rs 500
C)
Rs 300
D)
Rs 400

Correct Answer : Option (C) - Rs 300

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3 .
Which of the following is not a part of machinery that settles industrial disputes?
A)
Wage Court
B)
Works Committee
C)
Conciliation officers
D)
Board of Conciliation

Correct Answer : Option (A) - Wage Court

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4 .
In the last one decade, which one among the following sectors has attracted the highest foreign direct investment inflows into India?
A)
Chemicals other than fertilizers
B)
Services sector
C)
Telecommunication
D)
Food processing

Correct Answer : Option (C) - Telecommunication

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5 .
Foreign Direct Investment ceilings in the telecom sector have been raised from 74 percent to
A)
80 percent
B)
83 percent
C)
90 percent
D)
100 percent

Correct Answer : Option (D) - 100 percent

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6 .
Gilt-edged market means
A)
bullion market
B)
market of government securities
C)
market of guns
D)
market of pure metals

Correct Answer : Option (B) - market of government securities

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7 .
In which of the following sequences the change in quantity of money leads to change in price level in the Keynesian models?
A)
Change in quantity of money - change in investment - change in employment and output - change in rate of interest - change in price level
B)
Change in quantity of money - change in employment and output - change in investment - change in the rate of interest - change in price level
C)
Change in quantity of money - change in investment - change in rate of interest - change in employment and output - change in price level
D)
Change in quantity of money - change in rate of interest - change in investment - change in employment and output - change in price level

Correct Answer : Option (D) -

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8 .
ICICI is the name of a
A)
financial institution
B)
corporation
C)
bureau
D)
chemical industry

Correct Answer : Option (A) - financial institution

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9 .
Deficit financing implies
A)
printing new currency notes
B)
replacing new currency with worn out currency
C)
public expenditure in excess of public revenue
D)
public revenue in excess of public expenditure

Correct Answer : Option (C) - public expenditure in excess of public revenue

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10 .
Development expenditure of the Central government does not include
A)
defence expenditure
B)
expenditure on economic services
C)
expenditure on social and community services
D)
grant to states

Correct Answer : Option (A) - defence expenditure

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