Economy (Prelims 2019) Subject Test


What is meant by zero Budget Natural Farming–
[A farming done with the dung of indigenous cow and gau mutra.]

Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)–

When was the Agriculture Insurance company of India established–
20 December, 2002

Red Revolution – Tomato/Meat processing production

Special Agricultural Village Industry Scheme

The main objective of Vishesh Krishi Gram Udyog Yojana–
[Promotion of agriculture export]

The apex body of agriculture cooperative marketing at national level–

National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED)

At present, Minimum Support Price has been announced on how many crops–
[22 crops]

Which of the following place in Himachal Pradesh is known for shifting agriculture–

Kheel shifting agriculture is prevalent in Himachal Pradesh.

When was the National Land Record Modernization Programme started?

The size of land holding of which of the following economic region is highest–
Bundelkhand Region

Bundelkhand region has the largest agricultural holdings in the north India.


Money and Banking

The Reserve Bank uses two types of instruments-qualitative and quantitative- to control credit. 

Quantative tools
1. Rationing of credit

2. Selected credit control

3. Consumer credit control.

1. National Housing Bank established RESIDEX.

2. The maximum weightage in BSE 500 has been given to [information technology].

3. There are [23 stock exchanges] recognized by SEBI. 

4. The headquarter of Uttar Pradesh Stock Exchange is in [Kanpur].

The maximum weightage under wholesale Price Index has been given to which goods–
Manufacturing goods

Reserve Bank has to keep the gold and foreign securities of what minimum value under the Minimum Reserve System of currency issuance?

[Rs. 115 crore of gold and Rs. 85 crore of foreign securities]

​The assets of banks have been divided into 4 parts under Basel norms which are
1. Standard
2. Doubtful
3. Substandard
4. Risky

According to the Basel standard, the assets of banks are classified into four parts: standard, substandard, doubtful and harmful.

Lead Bank Scheme in India was started on the recommendation of which committee–
Gadgil Committee

Which of the following is the base year of Industrial Consumer Index at present–

Foreign currency that has the tendency of rapid migration is called–
[Hot money]

The M4 currency is the least liquid currency. M1 is the most liquid and easiest currency to transact.

The symbol of Indian Rupee has been prepared by–
D. Uday Kumar

Which of the following index is used for measuring inflation in India–
[Wholesale Price Index]

Reserve Bank of India has worked as central bank of which of the following countries–
[Pakistan and Burma]

Pakistan and Burma are the only options for whom RBI has acted as a central bank.

Which bank has been given the status of Self-Help Promotion Institute by NABARD–
[State Bank of India]

NABARD has given the status of Self Help Promotion Institute to State Bank of India.

Notice money is the borrowing taken by a commercial bank from other commercial bank for [More than one day]

When the loan is for one day, it is called call money. But when the borrowings are for more than a day, it is called notice money.

According to which law “Bad money drives out good money”–
[Gresham’s Law]

Which of the following is the meaning of Hazing?
[Protecting oneself from the loss in risks of various kinds.]

Protecting oneself from losses arising from various types of risks is called hedging. Hedging provides a mechanism in which buyers and sellers protect themselves against losses arising from exchange rates

The rate at which bank is always ready to lend to that customer where there is zero risk is called–

Prime lending rate

Which organisation has approved for promotion of Contingent Reserve Arrangement (CRA) as financial security network–


BRICS has established the contingency Reserve Bank as a financial safety net.

Participation Note (PN) is related to which one of the following–
Foreign Institutionalised Investment

Account year of Reserve Bank of India is–
July – June

Which was the first bank established in India?

[Bank of Hindustan] was established in 1770 

The debenture-holder of a company is its–

Debentures are a type of security. Which can be bought and sold in the market.

National Housing Bank in India was established as a fully owned subsidiary of
[Reserve Bank of India]

 apex institution for housing finance.

[RBI] determines interest rate on saving accounts in all nationalised commercial banks in India–

The Islamic Bank of which country started ‘Chat Banking Service’ through whatsApp–
United Arab Emirates

When central bank hikes up the value of domestic currency compared to foreign currencies in a fixed exchange rate system, it is called–


In fixed exchange rate system, when the bank raises the value of indigenous currency against foreign currencies, it is called overvaluation.


Plan, Institution and Reports

Congress Agriculture Reform Committee (1949) formed under the chairmanship of J.C. Kumarappa is related to

[Cooperative agriculture]

In 1944, eight industrialists of Bombay presented Bombay Plan. This plan was presented under the supervision of 

Sriman Ardeshir Dalal

Indian Institute of Vegetable Research is situated in–

Gobar Dhan Yojana started in 2018 under [Swacch Bharat Mission]

Rural Employment Guarantee Scheme first started–

Rural Employment Program named Employment Guarantee Scheme was first started by the Government of Maharashtra on January 26, 1979.

TRYSEM is a programme of–
[Rural development]
Giving priority to Scheduled Castes and Tribes.

Rural Infrastructure Fund was formed in the year 1995-96. Its purpose is to arrange funds for state govts and state owned corporations.

Programme included in Rural Infrastructure Development Fund–
>Rural Water Supply
>Rural Road
>Rural Electrification

Scheme providing training and skill in traditional and non-tradition businesses to women is–

[Swavalamban program], formerly known as the Norad Women's Economic Program, started in the year 1982-83.

What is the objective of Sangam Scheme–
Helping disabled

Sangam scheme started on 15 August 1996.

Which age group is eligible for the nomination in Sarva Siksha Abhiyan–
6 – 14 Year

‘Social Empowerment Memorial Day’
20 March

Who advocated the policy of providing urban facilities in rural region–
Dr. A.P.J. Kalam

National Digital Communications Policy has three missions - 
Connect India (Global Broadband Access), 
Propel India (Roadmap for Emerging New Technology) 
Secure India (Establishing Data Protection System); 

The ex-officio Chairman of National Population Commission is–
Prime Minister

What was the length of Railway line which was first started between Bombay and Thane in the country–

34 km

Recently third phase of Pradhan Mantri Sadak Yojana has been started. This scheme was launched in [2000]

The first state of India which prepared Human Development Report–
Madhya Pradesh

Central Institute for Research on Goats (CIRG) is situated in–

Makhtum (between Agra and Mathura) 

‘Project Shashakt’ is related to which–

In which State Yarn Bank has been established for the benefit of weavers–

 startup Ecosystem Ranking-2019–

‘Operation Digital Board’ was started in which year–

According to ‘State of World Population, 2019
The global population is growing at an average rate of 1.1%.


Tax Governance

When was Indian Competition Commission established?

Ashok Chawla was its first president. Its objective is to eliminate obstructive activities in competition and encourage market competition.

How many treasury bills are in vogue at present–
91, 182 and 364 days

The Central Government obtains short term loans through Treasury Bills. Currently, 91, 182 and 364 days Treasury bills are in force.

In which of the following mint, medals apart from coins are also produced?
1. Kolkata
2. Mumbai

Apart from coins, medals are also produced in the Central Government mints of [Kolkata and Mumbai].

Who is the following formulates fiscal policy in India–
Ministry of Finance

Budget is a record of–
[Fiscal policy of the government]

The budget is a statement of the receipts and expenditure of the government for each financial year.

If interest payment is included in Primary Deficit then it is equal to–
Fiscal deficit

Fiscal deficit = revenue receipts + debt related receipts + other receipts - total expenditure

Effective Revenue Deficit was presented in which Central Budget–
2011 - 12

The industry which developed first in India–
Cottage Industry

Tata Iron and Steel Company (Tisco) was established in Jamshedpur in 1907

income tax, corporation tax, property tax= direct tax service.

Which committee recommended to abolish the income tax exception available in Section-88 of the Indian Income Tax Act–

Kelkar Committee

An [import quota] is a type of trade restriction that sets a physical limit on quantity of a good that can be imported into a country in a given period of time.

Interim Budget presented by Govt of India on February 1, 2019, aims to make India a {10 trillion} dollar economy by [year 2030].

GST Act became applicable under which Constitutional Amendment–
[101st Amendment]

GST was recommended by {Vijay Kelkar Committee} in India.

The maximum percentage of taxes in total public income is corporation tax.

General Anti Avoidance Rule ‘GAAR’ has been prepared by Department of Revenue under [Ministry of Finance]

Which budget is known as sunset budget system–
[Zero based Budget]

Which means before sunset of financial year, every department has to submit a zero based budget.

When govt finance the budget deficit through borrowing from central bank and by printing of currency, this system is called–

[Deficit financing]

GST was implemented from July 1, 2017, under which tax rates of 0%, 5%, 12%, 18% and 28% have been kept. 

Within its ambit, [human use - alcohol, natural gas, high-speed diesel, crude oil] are excluded.

Bharatiya Mahila Bank was established on [19 November 2013] in Mumbai. 

It' is headquarter is in [New Delhi]. 

After Pakistan and Tanzania, [India is third country] in the world where a women's bank has been established.

********The correct sequence (descending order) of ‘source of revenue’ of Budget 2019-20 is–*************************

Corporation tax - 21%, lending and other liabilities - 20%, service tax and other taxes - 19%, income tax - 16%.

 As per [Article 112] of the Indian Constitution, it is a compulsory task of the government.

First budget of India was presented on 18 February 1860 by [Scotsman James Wilson].
The first Union Budget of Independent India was presented by [RK Shanmukham Chetty] on November 26, 1947

The central ideas of the Budget are - "[Aspirational India, Economic development, A Caring Society]"

Fiscal deficit is higher than budget deficit.
Fiscal deficit means that government is meeting its expenses by borrowing from Reserve Bank of India and other lenders of the government.

The income tax exemption limit on gravity has been determined according to Income Tax Act, 1961 in India–
20 Lakh

Finance Ministry raised the income tax exemption (tax free) limit for gratuity to Rs. 20 lakh.

Which population census is the basis of revenue distribution in the 15th Finance Commission–
[Census of 2011]

The 15th Finance Commission talks about revenue sharing based on the 2011 census. Whereas the 1971 census was made the basis in the earlier Finance Commission.


Industry and Business
Navratna Company plan was started by the Government of India from 1997 and Maharatna Company Plan from 2010,  

National Mineral Development Corporation is a Navratna company and Maharatna company status is given to Navratna company only.

'All India Handloom Board' was established in- 1952, 

National Small Industries Corporation Limited -  1955, 

Cottage Industries Board- 1948.

Central Silk Board-  1949 

On March 8, 2018, the Ministry of Micro, Small and Medium Enterprises launched the Udyami Sakhi portal on March 8, 2018 to encourage women entrepreneurs.

[To strengthen the economic condition of women and to provide financial support for establishing business.]

The industry which developed first in India–Cottage Industry

The development of tourism and hotel industry in India is the works of which of the following?

 ITDC (Indian Tourism Development Corporation). It is a semi-autonomous institution.

Pradhan Mantri Mudra Yojana was started for tackling the financial problem of MSME industry. This scheme works as a subsidiary unit of which bank?

Balko – Russia (Soviet Union)

Nalco – France

Hindalco – America

Indalco – Canada

The maximum limit for foreign investment in public banking sector is fixed at 49%, 
74% in the private banking sector, 
51% in multi-band retail and 

26% in print media.

Pearl Farming is the important cottage industry of which country–

Which of the following shows unfavourable balance of trade–
Export < Import

the first sugar mill established in the country?
Betiya (Bihar)

Which of the following industry is the biggest consumer of water in India–
Thermal Power

Released data by World Steel Association, India is ranked at which place among countries producing raw steel–

China ranks first, India [second] and Japan third.

Universal Service Obligation Fund is related to–
Accommodation of liabilities of telecom companies


Economic Development and Planning

Commodities that are neither fully public nor fully private but have features of both, are called–
Mixed goods

National Broadcasting service and Community Health Programme were stated under which of the following Five Year Plan–

[First Five Year Plan]

Under the First Five Year Plan, the Community Health Program started in 1952 in the National Extension Service.

National Planning Committee was formed by–
[Subhash Chandra Bose]

The National Planning Committee was formed by Subhash Chandra Bose. The committee was headed by Jawaharlal Nehru.

The basic objective of [8th Five Year Plan] was to human development in various aspects.

the slogan of Garibi Hatao was given in 1971.

Development Centre Approach for eradicating regional dispurity was started in which Five Year Plan–

 Fourth Five Year Plan (1969–74)

But special emphasis was given to this approach in the Fifth Five Year Plan.

Which country first adopted the family Planning programme governmentally–


In 1952, India started the world's first national family planning program.

The best way of distribution of income in any country is–
Progressive taxation related to regressive expenditure.

First Five Year Plan-  Harrod and Domar Model

Third Five Year Plan- Sandy and Chakravorty Model

Fifth Five Year Plan- D.P. Dhar Model

Crude Birth Rate is–
The number of live births registered in 1 year per 1000 population in a particular area.

According to 15th census of 2011, population percentage of scheduled tribes of the total population of India is–




At present, India is ranked third in the world on the basis of purchasing power parity whereas the first and the second economies are–

[China and United States of America]

Asian Drama – Gunnar Myrdal

The form of market in which a large number of buyers and sellers are present and individual buyer or seller has no control over price is called–

Perfect competition

The policy maker of the MGNREGA, ‘Jean dreze’, is a  from [Belgium]

Indian Industrial Finance Corporation – 1948 

Indian Life Insurance Corporation – 1956 

Bombay Stock Exchange – 1875

State Finance Corporation – 1951

The present rank of India in the Production of medicine at global level is–
Third Place

Which state has the highest child death rate

Multilateral Investment Guarantee Agency was established in 1988 in Washington DC,

International Development Association – 1960 

International Finance Corporation – 1956

International Bank for Reconstruction and Development – 1944

In how many PIN regions India has been divided?

out of which 8th Pin area belongs to the States / Union Territories of India and the 9th Pin area is related to Army Post Office (APO), Field Post Office.

Economy (Prelims 2019) Subject Test Economy (Prelims 2019) Subject Test Reviewed by Admin on April 03, 2020 Rating: 5

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