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1) In the second nationalization of commercial banks ……………. Banks were nationalized.

a) 4.
b) 5.
c) 6.
d) 8.

ANSWER : 6

2) If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits:

a) Will decrease.
b) Will increase.
c) Will neither increase nor decrease.
d) None of the above.

ANSWER : Will neither increase nor decrease

3) India changed over to the decimal system of coinage in which year?

a) April 1995.
b) April 1957.
c) April 1958.
d) April 1959.

ANSWER : April 1957

4) Gross domestic capital formation is defined as:

a) Flow of expenditure devoted to increase or maintaining of the capital stock.
b) Expenditure incurred on physical assets only.
c) Production exceeding demand.
d) Net addition to stock after depreciation.

ANSWER : Net addition to stock after depreciation

5) On July 12 1982, the ARDC was merged into:

a) RBI.
b) NABARD.
c) EXIM bank.
d) None of these.

ANSWER : NABARD

6) The central co-operative banks are in direct touch with:

a) Farmers.
b) State co-operative banks.
c) Land development banks.
d) Central government.

ANSWER : State co-operative banks

7) Maximum revenue in States are earned through:

a) Land revenue.
b) Custom revenue.
c) Commercial taxes.
d) Excise duties on intoxicants.

ANSWER : Custom revenue

8) Excise duty is a tax levied on the:

a) Import of goods.
b) Export of goods.
c) Production of goods.
d) Sale of goods.

ANSWER : Production of goods

9) The condition of indirect taxes in the country’s revenue is approximately?

a) 70 percent.
b) 75 percent.
c) 80 percent.
d) 86 percent.

ANSWER : 86 percent

10) Deficit financing means that the government borrows money from the:

a) RBI.
b) Local bodies.
c) Big businessmen.
d) IMF.

ANSWER : RBI

11) The annual yield from which of the following Union Government taxes is the highest?

a) Custom duties.
b) Corporation tax and income tax.
c) Inheritance tax, wealth tax, interest tax and gift tax.
d) Excise duties.

ANSWER : Excise duties

12) Short term finance is usually for a period ranging up to:

a) 5 months.
b) 10 months.
c) 12 months.
d) 15 months.

ANSWER : 12 months

13) When was the first paper currency started in India?

a) 1862.
b) 1542.
c) 1601.
d) 1880.

ANSWER : 1542

14) Devaluation of currency leads to:

a) Fall in domestic prices.
b) Increase in domestic prices.
c) No impact on domestic prices.
d) Erratic fluctuations in domestic prices.

ANSWER : Increase in domestic prices

15) The central banking functions in India are performed by the:

a) Central Bank of India.
b) Reserve Bank of India.
c) State Bank of India.
d) Punjab National Bank.

ANSWER : Reserve Bank of India

16) Deprecation means:

a) Closure of a plant due to lock out.
b) Closure of a plant due to labour trouble.
c) Loss of equipment over time due to wear and tear.
d) Destruction of a plant in a fire accident.

ANSWER : Loss of equipment over time due to wear and tear

17) The association of the rupee with pound sterling as the intervention currency was broken in:

a) 1990.
b) 1991.
c) 1992.
d) 1993.

ANSWER : 1992

18) The currency convertibility concept in its original form originated in:

a) Wells Agreement.
b) Bretton Woods Agreement.
c) Taylors Agreement.
d) None of these.

ANSWER : Bretton Woods Agreement

19) When was the first wholly Indian Bank set?

a) 1794.
b) 1894.
c) 1896.
d) 1902.

ANSWER : 1894

20) Our financial system has provided for the transfer of resources from the centre to the states, the important means of resource transfer are:

a) Tax sharing.
b) Grant-in-aids.
c) Loans.
d) All of the above.

ANSWER : All of the above

Indian Economy : General knowledge questions and answers