CBSE Questions for Class 8 General Knowledge Indian Economy Quiz 16 - MCQExams.com

The first stage of research is
  • to collect data
  • to select problem
  • preparation of schedule of problem
  • None of these
Which of the following is not a new social movement?
  • resource mobilization theory
  • labour movement
  • environmental movement
  • anti-nuclear movement
What is the term used to describe the stages from one's birth into a family with a specific status through formation of a new family unit?
  • intergenerational mobility
  • socioeconomic life cycle
  • vertical mobility
  • none of the above
The stages of the demographic transition model are.
  • high births high death rates
  • low death rates high birthrates
  • low birth rates low death rates
  • all of the above
Consider the following statements related to the `Angel Investors' and select the correct ones, using the code given below: 
Such investors are focused on helping the business succeed rather than reaping a huge profit from their investment.
Conceptually, in profit motive, they are exact opposite of a `venture capitalist'.
They usually invest in `person' rather than in the viability of the business.
In India, they are classified as a category of `venture capital funds'. 
  • 1, 2 and 3
  • 2, 3 and 4
  • 1, 3 and 4
  • 1,2 ,3 and 4
Norms are.
  • internalized in most cases
  • guidelines for human behavior
  • reflections of values
  • all of the above
Both fiscal and monetary policies focus on.
  • the supply side of the market
  • the demand side of the market
  • both sides of the market
  • the global market
Select the correct one/s related to the `corporate bond' market in the country by using the code given below:
Government aims to enable the large corporate houses to meet about 25 per cent of their financing needs through it.
Soon 'A' grade rated corporate bonds will be considered as investment grade which is presently 'AAA'. 
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Which one of the following statements is correct about the 'backlease' process?
  • It is a process wherein the land acquired by the government its returned to the fanner on a temporary basis.
  • It is a process through which farmers mum their compensation back to the authority in return for the complete transfer of thin. land.
  • It is a process by which the land acquired by the government is transferred to marginal fanners on contract-basis.
  • It is a process wherein the land acquired and transferred in government's name is returned to villagers who claim that their 'abode' land has been acquired.
A process by which there is transfer of results of labour of one social group to benefit another is
  • Exploitation
  • Existential inequality
  • Radicalization
  • Social mobility
Consider the following liquid assets:
Demand deposits with the banks
Time deposits with the banks
Saving deposits with the banks
Currency
The correct sequence of these assets in the decreasing order of liquidity is _____________.
  • 1 4 3 2
  • 4 3 2 1
  • 2 3 1 4
  • 4 1 3 2
Which of the following was/were economic critic/critics of colonialism in India?
Dadabhai Naoroji
G. Subramania Iyer
R. C. Dutt
Select the correct answer using the code given below.
  • 1 only
  • 1 and 2 only
  • 1 and 3
  • 3 only
Consider the following statements:
I. National Development Council is an organ of the Planning Commission.
The Economic and Social Planning is kept in the Concurrent List in the Constitution of India.
The Constitution of India prescribes that Panchayats should be assigned the task of preparation of plans for economic development and social justice. 
Which of the statements given above are correct? 
  • Only 1
  • 2 and 3
  • 1 and 3
  • 1, 2 and 3
Consider the following statements:
Inflation benefits debtors.
Inflation benefits the bond-holders.
Which of the statements given above are correct?
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Revenue of the State Governments are raised from the sources, except _______________.
  • Entertainment tax
  • Expenditure tax
  • Agricultural income tax
  • Land revenue
Select the correct one/ones about the 'dept service ratio' of external debts, using the code given below: 
This is measured by the proportion of total debt service payments to current receipts of the BoP.
It is a measure of strain on BoP due to debt service obligations.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the correct one/s related to income tax payments in the countryuse the code to your answer:
Income tax paid by salaried persons on average is over 300 per cent higher than the income tax paid by that of the business persons.
Individual income taxpayers in jobs and in business are almost equal in number.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the correct onefones about the Internal Extra Budgetary Resources(IEBR) in India. using the code given below:
This is an important part of the Central Plans.
It constitutes the resources/funds raised by the public sector undertakings through profits, loans and equities.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
If the RBI adopts an expansionist open market operations policy, this means that it will _____________________.
  • buy securities from non-government holders
  • sell G-Secs in the open market
  • offer commercial banks more credit
  • openly announce to the market that it intends to expand credit.
Select the correct statement regarding the 'threshold rate of inflation' in India _________________.
  • It may be seen as the 'spillover effects' of headline inflation.
  • Inflation going beyond the upper limit of the comfort zone
  • Other sector gets the effects of higher inflation.
  • (a) and (b) both
Select the correct one/ones about the Census - 2011 from the given list.
This Census had a 'mascot' for the first time.
The 'mascot' was devised to make the process more people- friendly with the objective of helping people to relate with the Census process and to elucidate the key role of the enumerator.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the incorrect type of the mutual fund scheme available in India:
  • Open-ended schemes
  • Closed- ended schemes
  • Exchange-traded funds
  • None of the above
The supply-side economics, which always gets attention in India, lays greater emphasis on the point of view of ________________.
  • Producer
  • Global economy
  • Consumer
  • Middle -man
Select the incorrect statement about a Mutual Fund in India.
  • They are compulsorily registered with the SEBI, which also acts as the first wall of defence for all investors in these funds.
  • Each mutual fund is run by a group of qualified people who form a company called an Asset Management Company (AMC).
  • The operations of the AMC are under the guidance of another group of people, called trustees.
  • Through the AMC and the Trustees own no responsibility for the investors money in a mutual fund.
Select the correct statements regarding the operations of the various Money Market components in India using the code given below:
Commercial Paper route of borrowing working capital is profitable once inflation has peaked.
 Cost of operation for the banks in the Call Money Market falls in wake of rising inflation.
Earnings from Money Market Mutual Funds see erosion with increased inflation.
Interest payments liabilities of the Gol on account of the Cash Management Bill increases in case of decreased inflation.
  • 1,2 and 3
  • 2,3 and 4
  • 1,2 and 4
  • 1,2,3 and 4
Select the incorrect set of the 'new categories' which have been incorporated by the Census-2011 for the first time in India, using the code given below.
Gender, Date of Birth, Marital Status, Literacy Status
Migration, Disability, Name of the Institutional Household
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Priority Sector lending by banks in India constitutes the lending to  ________________.
  • agriculture
  • micro and small enterprises
  • weaker sections
  • all of the above
Which among the following may not be considered a measure of cutting down fiscal deficit of the Indian economy? 
  • Educating and encouraging states to go for reforms in the power sector, irrigation and healthcare
  • Imposing 'Tobin tax' on the outflows of the FDI and the PIS funds
  • Handing over the responsibilty of higher education to the private sector
  • Rationalising subsidies on fertilizers, LPG, medicines and foodgrains
Consider the following statements regarding 'revenue deficit' and select the incorrect one/ones using the code given below: 
It is the gap between the consumption expenditure of the Government and its current revenues.
It also indicates the extent to which the government has borrowed to finance the current expenditure.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the correct one/ones the 'external debt' from the list given below :
Long term debt is defined as debt with an original maturity of more than one year.
Short term debt is defined as debt repayments on demand or with an original maturity of one year or less.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the correct one/ones about the system of tax collection in the case of the 'GST' in India, using the code given below:
It is a multi-point tax system with the end-user finally bearing the burden of the tax.
It has no cascading impact on the prices of the goods and services.
It is pro-poor without being anti-rich.
  • 1 and 2
  • 2 and 3
  • 1 and 3
  • 1, 2 and 3
Select the incorrect one about 'recession' as it is perceived in India.
  • A period of general economic decline, defined usually as a contraction in the GDP for two consecutive quarters or longer.
  • It is marked by high unemployment, stagnant wages, and fall in retail sales, does not last longer than one year.
  • Although recessions are considered a normal part of a capitalist economy, there is no unanimity among economists on its causes.
  • Recessions are better than stagnation but worse than slowdown and slackness.
VAT method of tax collection has got dome in-built arrangement by which
it encourages growth and checks inflation.
it encourages tax compliance, discourages tax evasion.
Select the answer using the code given below:
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Which of the following set of the 'canons of taxation' has been made the part of Indian tax reforms process till date? Select your answer using the code given below:
Equality
Certainty
Convenience
Economy
  • 1 and 2
  • 2,3 and 4
  • 1 and 3
  • 1,2,3 and 4
Which of the following come under the Indian classification of the Small Saving Schemes (SSSs)? Select your answer using the code given below:
Postal Deposits comprising savings account, recurring deposits, time deposits of varying maturities and monthly income scheme (MIS)
Savings Certificates comprising the National Small Savings Certificate (NSC) and Kisan Vikas Patra (KVP)
Social Security Schemes comprising the public provident fund (PPF) and Senior Citizens' Savings Scheme (SCSS)
  • 1 and 2
  • 2 and 3
  • 1 and 3
  • 1,2 and 3
Select the correct reason/reasons why the governments impose taxes, using the code given below:
To redistribute the income in the economy
To subsidize various private goods
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Which of the following may be considered correct about 'zero-based budgeting'?
  • Fresh evaluation of every item if expenditure from the very beginning of each financial year.
  • When total expenditure of the government is kept equal to its total receipts.
  • When the fiscal deficit is kept at zero per cent of he gross domestic product.
  • When the government goes for zero level primary and monetized deficits.
Which of the following is correct about inflationary period?
  • Salaried people's real income goes up while their nominal income does not increase.
  • Banks go for downward revision in their lending rates.
  • Local currency faces the pressure of depreciation.
  • Volume of exports increases.
Official Development Assistance,external concessional loans, India get, can be used by _____________________.
  • only Central Government.
  • Centre and States.
  • Centre, States as well as the private sector.
  • only social sector.
What is correct about the concept ' bond ratio' frequently used regarding the financial crises of the Western economies?
  • It is the measure of a bond issuer's borrowed capital represented by bonds, expressed as a percentage.
  • It is the ratio of the face value and the market value of a government bond.
  • A ratio of the earning on corporate bonds and the government bonds.
  • A ratio to measure the per annum yield on a bond in comparison to the earnings in the share market during the same period.
What is correct about the stock market term 'debt-equity swap' used frequently in the crises-driven western economies?
  • A method of converting banks' loans into equity shares of a concerned listed company.
  • A way out of long-term loans by replacing them with preference shares used by a listed company.
  • An arrangement in which a firm exchanges its newly issued common stock for its already-issued bonds.
  • A short-term relief from the long-term liabilities of company given by the lender.
Which of the following can be inferred if a country continues to devalue its currency to promote its exports?
The country's production capacity might have gone heavily oriented to the external markets.
The country is selling its precious assets to the world at throwaway prices which may turn out to be self-defeating in the long-run.
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Which one of the following is not among the functions of the Asian Development Bank?
  • Providing financial and technical support to the member countries which face balance of payment crises.
  • Providing loans to member countries for economic and social advancements.
  • Providing technical assistance and advisory services to the member countries.
  • Coordinating development policies and plans of the member countries.
What is correct about the security market term 'fallen angel', used frequently in the world?
  • A share, which has lost sheen after a crash in the share market.
  • A bond that was investment grade when issued but now has much lower rating.
  • A company takeover is through an open bid by its closest competitor.
  • A situation when a listed company turns out to be a liability on the stock exchange due to its higher weight in the stock exchange index.
Which of the following will be the outcomes once an economy is under an inflationay pressure? Select your answer using the code given below:
Domestic currency heads for depreciation.
Exports become less competitive with imports getting costlier.
Cost of borrowing decreases.
Bond-holders get benefitted.
  • 1 and 2
  • Only 2
  • 1 and 3
  • Only 3
What is correct one/ones about the RBI from the given choices? Select your answer using the code below:
National Housing Bank, Deposit Insurance and Credit Guarantee Corporation of India (DICGC) and the Bhartiys Reserve Bank Note Mudran Private Limited (BRBNMPL) are the only fully-owned subsidiaries of the RBI in India.
While RBI maintains a majority stake in the National Bank for Agriculture and Rural Development (NABARD), it has recently divested all its stake in State bank of India to the government of India.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the correct objectives of the 'term ropes' started by the RBI, using the code given below: 
It checks the ad-hocism in the day-to-day banking operation in the country.
It will promote stability in the bank's lending business.
Lending rates will become more transparent to the loan seekers.
  • 1 and 2
  • Only 2
  • 2 and 3
  • 1,2 and 3
What is correct about the stock market term 'divided rollover'?
  • It is an act of trading strategy of buying securities shortly before their ex-dividend dates and selling them after collecting dividends.
  • An act of postponement of dividend distribution by a company to the next year.
  • When dividend distribution is put off by a company for over one year.
  • A situation in dividend distribution when listed companies offer choice to its shareholders of leaving their dividends with the company itself for some time at some interest charges given to them.
Which of the following best described the term 'brain waste'?
  • A situation when the innovative ideas of entrepreneurs do not get utilised due to a weak financial system.
  • The migrants to foreign countries who take up unskilled jobs despite having professional qualifications.
  • Top brains of scientist community going for salaried jobs in place of entering research and development works.
  • A highly skilled person employed in a low-paid job.
Which of the following will be the impact on the banking industry in case RBI increases the Bank Rate?
  • Banks will increase their lending rates.
  • Long-term loans in the country will become costlier.
  • banks will decrease the interest which they offer on the time deposits.
  • None of the above.
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