CBSE Questions for Class 8 General Knowledge Indian Economy Quiz 1 - MCQExams.com

BHIM app is used for ______.
  • making digital payments
  • gas subsidies
  • education loans
  • exam locator
What does "GST" stand for?
  • Goods and Service Transfer
  • Good Service Tax
  • Good Security Tax
  • Goods and Services Tax
Among the following items which is the biggest earner of foreign exchange for India?
  • Iron ore
  • Readymade garments
  • Machinery and transport equipment
  • Pearls and semi-precious stones
Which of the following is not correctly matched?
  • Cut-motion : demand to reduce allocation of funds
  • Guillotine : bring the debate to an end
  • Division : mode of arriving at a decision
  • Point of order : put an end to the business of the day
A Bill is deemed to be a Money Bill if it has any provisions dealing with
imposition, abolition, remission, alteration or regulation of any tax
appropriation of money from the Consolidated Fund of India
imposition of fines or other pecuniary penalties
payment of fee for licences or fee for service rendered
Select the correct answer using the codes given below.
  • 1 and 2
  • 1, 3 and 4
  • 1, 2 and 3
  • Only 2
Which of the following does not come under the public accounts of India?
  • Provident fund deposits
  • Remittances
  • Saving banks deposits
  • Salaries of the President
Which one of the following expenditures is not charged on the Consolidated Fund of India?
  • Salary and allowances of the President of India
  • Salary and allowances of the Vice-President of India
  • Salary and allowances of the Justice of the Supreme Court of India
  • Salary and allowances of the Speaker of the Lok Sabha
Consider the following statements.
Agricultural sector is continued to be the primary employment providing sector of India.
Service sector is the principal source of employment in urban areas in India.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
With reference to the Finance Commission of India, which of the following statements is correct?
  • It encourages the inflow of foreign capital for infrastructure development.
  • It facilitates the proper distribution of finance among the public sector undertakings.
  • It ensures transparency in financial administration.
  • None of the above
Consider the following statements
In India, the life expectancy at birth of male is more than that of female.
In India, the infant mortality rate per thousand of live birth of girl is more than that of boy.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
With reference to Indian economy consider the following statements:
The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
The Gross Domestic Product at market prices (In rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
What is meant by disposable personal income _________________.
  • A person's income
  • Income remaining out of personal income after the payment of tax
  • Income that remains after meeting necessities
  • Income spend for food only
With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?
It has increased the share of states in the central divisible pool from 32% to 42%.
It has made recommendations concerning sector-specific grants.
Select the correct answer using the codes given below. 
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
The Finance Commission is primarily concerned with recommending to the President about
  • the principle governing Grant-in-aid to be given to the States
  • distributing the net proceeds of the taxes between the Centre and the States
  • Both (a) and (b)
  • Neither (a) nor (b)
In Financial Emergency, salaries and allowances of which groups get reduction?
  • Central Government Employees
  • Judges of the Supreme Court and High Courts
  • Both 'a' and 'b'
  • None of the above
When will demand become a grant?
  • When a demand is proposed
  • After the discussion on demand is over
  • After the demand is granted
  • When the Budget Session is closed
Which of the following statements are true about T-Bills?
$$1.$$ $$14$$ days T-bill is auctional on every Friday every week.
$$2.$$ $$19$$ days T-bill is auctioned on every Friday every week.
$$3.$$ $$182$$ days T-bill and $$364$$ days T-bill are auctioned on every alternate Wednesday.
$$4.$$ $$182$$ days T-bill and $$364$$ days T-bill are auctioned on a fortnight basis.
Choose the right answer from the codes given below.
  • $$1, 2$$ and $$3$$
  • $$1$$ and $$4$$
  • $$2$$ and $$3$$
  • $$1, 2$$ and $$4$$
"The position of Pre-eminance accorded to Planning Commission, is inconsistent with the conception of a Cabinet form of Government". The above statement is associated with 
  • Ashok Chanda
  • K. Santhanam
  • Estimate Committee
  • Administrative Reforms Commission
What is the percentage of the constituent of the population of the working age group (15-64 years) in the Indian economy?
  • Less than 25%
  • Less than 50%
  • More than 50 %
  • More than 75%
The first Finance Commission was constituted in
  • 1950
  • 1951
  • 1952
  • 1954
Which one of the following is not a recommendation of the Fourteenth Finance Commission?
  • Share of states in Central Divisible Pool is increased form 32% to 42%.
  • Area under forest cover is an important variable in the distribution of state's share among states.
  • Fiscal discipline is dropped as a variable in the distribution of states share among states.
  • Sector specific grant is recommended as in the previous Finance Commissions.
Which one of the following correctly explains the underdeveloped nature of the economy of India?
Inequitable distribution of income
High unemployment in the economy
Slow rate of increase in national income
Slow rate of growth of road infrastructure
Select the correct answer using the codes given below
  • 1,2, 3 and 4
  • 1,2 and 3
  • 2 and 3
  • 3 and 4
Which one of the following forms the largest share of deficit in Government of India Budget?
  • Primary deficit
  • Fiscal deficit
  • Revenue deficit
  • Budgetary deficit
Consider the following statements
$$1.$$ LIBOR is the average interest rate provided by leading banks in London.
$$2.$$ MIBOR and MIBID are the reference rates in inter-bank call money market.
Which of the above statements is/ are true?
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
Which of the following statements are correct?
When marginal revenue is positive, total revenue increases with increase in output
When marginal revenue is zero, total revenue is maximum
When marginal revenue becomes negative, total revenue falls with increase in output
Select the correct answer using the codes given below
  • 1 and 2
  • 2 and 3
  • 1 and 3
  • 1,2 and 3
Consider the following statements
$$1.$$ American depositary receipts are securities of a non-US company that trade in the US financial markets.
$$2.$$ ADR is a negotiable security that represents securities of companies that is foreign to the market on which the DR trades.
Which of the statements given above is/ are correct?
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
Consider the following statements
$$1.$$ Global depository receipt is a certificate issued by a depository bank which purchases shares of foreign companies and deposits it on the account.
$$2.$$ Global depository receipts are used to invest in companies from developing or emerging markets.
Which of the statements given above is/ are correct?
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
Which among the following is not an approved stock exchange in India?
  • UP stock Exchange, Kanpur
  • Vadorara Stock Exchange Vadodara
  • Assam Stock Exchange, Assam
  • Bhubaneshwar Stock Exchange Bhubaneshwar
Consider the following statements
The function(s) of the finance Commission is / are
to allow the withdrawal of the money out of the Consolidated Fund of India.
to allocate between the States the shares of proceeds of taxes.
to consider the application for Grant-in-aid from States.
to supervise and report on whether the Union and State Governments are levying taxes in accordance with the budgetary provisions.
Which of these statements is/are correct?
  • Only 1
  • 2 and 3
  • 3 and 4
  • 1, 2 and 4
In which of the following respects, the Finance Commission differs from the Planning Commission?
Legal status
Composition
Tenure
Form the organisation
Function
Select the correct answer using the codes given below
  • 1, 2 and 5
  • 1, 2, 3 and 5
  • 1, 2, 4 and 5
  • 1, 2, 3, 4 and 5
Which one of the following market is primarily related with the S and P CNX?
  • Primary market
  • Secondary market
  • Commodity market
  • None of the above
With reference to functions of Security Exchange Board of India, consider the following statements.
$$1.$$ It has power to ensure the orderly development of capital market.
$$2.$$ It has power to protect the investors in the capital market.
$$3.$$ It has power to ensure proper functioning of insurance market in India.
$$4.$$ It has power to regulate the merchant banking in India.
Which of the statements given above are correct?
  • $$1, 2, 3$$ and $$4$$
  • $$2$$ and $$3$$
  • $$2, 3$$ and $$4$$
  • $$1, 2$$ and $$4$$
Which among the following are the indices of Bombay Stock Exchange?
$$1.$$ MIDCAP
$$2.$$ SMLCAP
$$3.$$ CNX MIDCAP
$$4.$$ S and P CNX $$500$$
Choose the right answer using the codes given below.
  • $$1$$ and $$3$$
  • $$2$$ and $$4$$
  • $$1, 2, 3$$ and $$4$$
  • $$1$$ and $$2$$
Consider the following statements
$$1.$$ Forward Markets Commission (FMC) regulates commodity trades in India.
$$2.$$ Forward Markets Commission (FMC), a financial regulatory agency is overseen by the Ministry of Finance in India.
Which of the statements given above is/ are correct?
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
With reference to State Financial Corporations, consider the following functions
$$1.$$ It guarantees the loans raised by the Industrial concerned payable in $$20- years$$.
$$2.$$ It underwriters the stocks, shares, bonds or debentures in the Indian Capital Market.
$$3.$$ It subscribes directly to the shares or stocks of any companies having limited liability.
Which of the functions given above is/ are correct?
  • $$1$$ and $$2$$
  • Only $$2$$
  • $$2$$ and $$3$$
  • All of these
Which one of the following is allowed to invest in all the securities traded on the primary and secondary markets as also in unlisted companies?
  • Pension funds
  • Mutual funds
  • Asset Management companies
  • All of the above
Which one of the following is the component of the Balance of Payments in the current account?
  • Net earnings on exports minus payments for imports
  • Earnings on foreign investments minus payments made to foreign investors
  • Cash transfers
  • All of the above
Consider the following banks
$$1.$$ Industrial Investment Bank of India
$$2.$$ Industrial Reconstruction Bank of India
$$3.$$ Industrial Reconstruction Corporation of India
Arrange the above banks chronologically and select the correct answer using the codes given below.
  • $$3, 1, 2$$
  • $$1, 3, 2$$
  • $$3, 2, 1$$
  • $$1, 2, 3$$
Match the following
List I
Publishers		List II
Publication
A. Ministry of Industry$$1.$$ Report on Currency and Finance
B. Central Statistical Organisation$$2.$$ Economic Survey
C. Reserve Bank of India$$3.$$ Wholesale Price Index
D. Ministry of Finance$$4.$$ National Accounts Statistics
  • $$2, 4, 3, 1$$
  • $$3, 4, 1, 2$$
  • $$4, 3, 1, 2$$
  • $$4, 1, 3, 2$$
Which one of the following statements appropriately describes the 'Fiscal Stimulus'?
  • It is an intense affirmative action of the Government to boost economic activity in the country.
  • It a massive investment by the government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth.
  • It is an extreme affirmative action by the government to pursue its policy of financial inclusion.
  • It is government's intensive action of the government action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation.
Consider the following statements regarding the Unit Trust of India (UTI)
$$1.$$ RBI is one of the major subscriber of the initial capital of the UTI.
$$2.$$ UTI was collapsed in $$2001-02$$.
Which of the statements given above is/ are correct?
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
When did the United Stock Exchange of India Limited launch in the Indian capital market?
  • $$1990$$
  • $$1995$$
  • $$2000$$
  • $$2010$$
Consider the following statements about Sinking Fund.
$$1.$$ It is a method of repayment of public debt.
$$2.$$ It is created by the government out of budgetary revenues every year.
Which of the statements given above is/ are correct?
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • None of the above
Which one of the following areas is related with the MCX in India?
  • Trading of multiple - commodities in the market
  • Trading of multiple-shares of different countries
  • Trading of consultation services in the market
  • None of the above
Which of the following are the methods of Parliamentary control over Public Finance in India?
Placing Annual financial Statement before Parliament.
Withdrawal of money from Consolidated Fund of India only after passing the Appropriation
Provisions of supplementary grants and vote-on-account.
A periodic or at least, a  mid-year review of programme of the government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office.
Introducing Finance Bill in the Parliament. Select the correct answer using the codes given below
  • 1,2, 3 and 5
  • 1, 2 and 4
  • 3, 4 and 5
  • All of these
Which of the following is/are example(s) of ancillary legislation?
  • Power to legislate with respect to collection or rent includes power to legislate with respect to remission of rent
  • Power to tax agriculture activity includes competence to enact a Law relating to tax on agricultural income
  • Power to levy tax includes power to enact provisions to check evasion of tax
  • All of the above
Which of the following statements is not correct?
  • Central Government can borrow outside India upon the security of the Consolidated Fund of India within limits fixed by the Parliament
  • State Government can borrow outside India upon the security of Consolidated Fund of State within limits fixed by the Legislature of the State
  • State cannot raise loan without the consent of the Centre, if there is still outstanding any part of loan made to the state by the Centre in respect of which a guarantee has been given by the Centre
  • None of the above
Consider the following factors
(1) Deficit financing
(2) Black money in an economy
(3) High rate of population growth
Which of the factors given above are responsible for the Demand-Pull inflation in an economy?
  • 1 and 2
  • 1 and 3
  • 2 and 3
  • All of these
The market in which loans of money can be obtained is called _______________.
  • Reserve market
  • Institutional market
  • Money market
  • Exchange market
Which of the following is the correct statement?
Full faith and credit clause does not apply to _______________.
  • Public Records
  • Judicial Proceedings
  • Acts of Corporations
  • Public Acts
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