WBCS Prelims 2014 Indian Economy Question and Solution

INDIAN ECONOMY QUESTION AND SOLUTION(QUIZ)-WBCS PRELIMS 2014

   In West Bengal Civil Service (WBCS) Preliminary Examination 2018, total 21 questions was asked from  Indian Economy.

1. Bokaro Steel Plant was established with the help of

[A]  America 

[B]  Britain       

[C]  France

[D] Soviet Union

Correct Answer

Correct Answer: [D] Soviet Union

2. If withdrawal of a worker from employment does not create any output loss, this situation is known as

[A]  Search unemployment         

[B]  Voluntary unemployment

[C]  Disguised unemployment       

[D] Frictional unemployment

Correct Answer

Correct Answer: [C]  Disguised unemployment       

3. Land reforms largely benefited the economic condition of

[A]  Agricultural labourers      

[B]  Bargadars   

[C]  Small farmers      

[D] Co-operative farmers

Correct Answer

Correct Answer: [B]  Bargadars   

4. Tertiary sector activities include

[A]  Cottage industries       

[B]  Mining activities

[C]  Construction activities      

[D] Infrastructure services

Correct Answer

Correct Answer: [D] Infrastructure services

5. Plan finance creates increase of money supply if there is

[A]  Increase in taxes

[B]  Increase in loan from the Reserve Bank of India

[C]  Increase in loan from commercial Banks

[D] Increase in loan from general public

Correct Answer

Correct Answer: [A]  Increase in taxes

6. In order to control inflationary price rise, Reserve Bank directs Banks to

[A]  Reduce rate of interest on credit       

[B]  Reduce Statutory Liquidity Ratio (SLR)

[C]  Increase Cash Reserve Ratio (CRR)      

[D] Buy bonds from capital market

Correct Answer

Correct Answer: [C]  Increase Cash Reserve Ratio (CRR)      

7. Point out the false statement.
India entered into financial structural reform by

[A]  Increasing import restriction

[B]  Import liberalisation

[C]  Opening of domestic market to the world trade

[D] Devaluation of exchange rate

Correct Answer

Correct Answer: [A]  Increasing import restriction

8. Existence of huge black money creates

[A]  Increase in the inequality of income

[B]  Decrease in the quality of output

[C]  High living standard for all

[D] Both [B]  and [C]  

Correct Answer

Correct Answer: [A]  Increase in the inequality of income

9. World Trade Organisation (WTO) directed LDCs including India to

[A]  Impose export subsidy

[B]  Bring in exchange control measures

[C]  Increase liberalisation and co-operation in foreign trade sector

[D] None of the above

Correct Answer

Correct Answer: [C]  Increase liberalisation and co-operation in foreign trade sector

10. Find out the statement which is false.
Financial Structural reform needs-

[A]  Fall in government budget deficit       

[B]  Increase in profitability of economic sectors

[C]  Reduce inflationary pressure

[D] Increase in the balance of payment deficit

Correct Answer

Correct Answer: [D] Increase in the balance of payment deficit

11. Which one of the following sectors of Indian economy is state owned and its service sector is a public enterprise ?

[A]  Irrigation       

[B]  Agriculture

[C]  Forestry

[D] Plantations

Correct Answer

Correct Answer: [A]  Irrigation       

12. New agri-structural strategy created special benefits for

[A]  Small farmers      

[B]  Big capitalist farmers       

[C]  Agricultural labourers      

[D] Intermediate traders

Correct Answer

Correct Answer: [B]  Big capitalist farmers       

13. Apex Bank for supplying agricultural credit is

[A]  Reserve Bank of India       

[B]  State Bank of India       

[B]  NABARD  

[D] Both [B]  and [C]   above

Correct Answer

Correct Answer: [B]  NABARD  

14. Structural reform of financial policy needs

[A]  SLR to increase and CRR to fall

[B]  Both SLR and CRR to increase

[C]  Cut down of easy loan to priority sectors

[D] None of the above

Correct Answer

Correct Answer: [B]  Both SLR and CRR to increase

15. The biggest ship building yard of India is ___ .

[A]  Garden Reach Workshop, Kolkata       

[B]  Hindustan Shipyard, Vishakhapatnam

[C]  Mazagaon Dock, Mumbai      

[D] Cochin Shipyard, Kochi

Correct Answer

Correct Answer: [D] Cochin Shipyard, Kochi

16. Revenue from agricultural income tax is collected and received by

[A]  Only Union Government        

[B]  Only State Government

[C]  Local self Government         

[D] Both Union and State Government

Correct Answer

Correct Answer: [B]  Only State Government

17. Major part of tax revenue in India comes from

[A]  Direct taxes       

[B]  Indirect taxes

[C]  Both Direct and Indirect taxes have equal share      

[D] None of the above

Correct Answer

Correct Answer: [A]  Direct taxes       

18. Term loan for expansion of industries in India is mainly provided by

[A]  Commercial Banks       

[B]  Development Banks      

[C]  Reserve Bank of India      

[D] Co-operative Banks

Correct Answer

Correct Answer: [B]  Development Banks      

19. Disinvestment policy implies

[A]  Dissolving the public sector units (PSU).

[B]  Selling the equities of the PSUs to the open capital market

[C]  Increasing government share in the PSUs

[D] None of the above

Correct Answer

Correct Answer: [B]  Selling the equities of the PSUs to the open capital market

20. Attitude of present industrial policy towards foreign direct investment is

[A]  Total rejection of FDl       

[B]  Increase in share of FDl

[C]  Decrease in share of FDl       

[D] None of the above

Correct Answer

Correct Answer: [B]  Increase in share of FDl

21. Increasing female literacy is expected to affect the birth rate in this way.

[A]  To increase       

[B]  To decline       

[C]  To remain constant       

[D] None of the above

Correct Answer

Correct Answer: [B]  To decline