WBCS Prelims 2014 Indian Economy Question and Solution



   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: [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: [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: [B]  Bargadars   

4. Tertiary sector activities include

[A]  Cottage industries       

[B]  Mining activities

[C]  Construction activities      

[D] Infrastructure services

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: [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: [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: [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: [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: [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: [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: [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: [B]  Big capitalist farmers       

13. Apex Bank for supplying agricultural credit is

[A]  Reserve Bank of India       

[B]  State Bank of India       


[D] Both [B]  and [C]   above

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: [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: [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: [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: [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: [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: [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: [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: [B]  To decline       

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