CBSE Questions for Class 8 General Knowledge Indian Economy Quiz 7 - MCQExams.com

Purchase or sale of government securities by the Central bank from the general public in the bond market, in a bid to increase or decrease the money supply in the economy is referred to as ________.
  • open market operation
  • rationing of credit
  • variable reserve ratio
  • dear money policy
India's market regulator SEBI is on course to relax investment norms for sovereign wealth funds, the investment vehicles which are directly controlled by the government of a country. The main reason behind this move is ____________.
  • the desire of the Government of India to attract more foreign investment
  • pressure by foreign governments on India to execute specific mutual agreements on finanacial services
  • SEBI's desire to create a more level playing field for foreign investors
  • RBIs relevant directive to SEBI
The functions of the committee on estimates, as incorporated in the Constitution of India, shall be to
report what economies, improvements in organisation, efficiency or administrative reform may be effected.
suggest alternative policies in order to bring about efficiency and economy in administration.
examine whether the money is well laid out within the limits of the policy implied in the estimates.
examine the reports, if any, of the Comptroller and Auditor General on the public undertakings. Select the correct answer using the codes given below
  • 1 and 2
  • 2 and 3
  • 1, 2 and 3
  • 3 and 4
Tarapore committee submitted its report on 'Full Convertibility on Rupee' in _________________.
  • Current account
  • Capital account
  • Both $$'a'$$ and $$'b'$$
  • Special Drawing Rights (SDR)
Micro-finance is the provision of financial services to the people of low income groups. This includes both consumer and the self-employed. The service/ services rendered under micro-finance is/are:
$$1.$$ Credit facilities
$$2.$$ Saving facilities
$$3.$$ Insurance facilities
$$4.$$ Fund transfer facilities
Which of the statements give above is/are correct?
  • $$1, 2, 3$$ and $$4$$
  • $$1$$ and $$4$$
  • $$2$$ and $$3$$
  • Only $$1$$
Consider the following statements about the Indian capital market:
$$1.$$ Primary Market in India is mainly dealt in the new issues and debentures.
$$2.$$ Primary Market in India is supervised by the Insurance Regulatory Development Authority.
Which of the statements given above is/are correct?
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
Which of the following taxes is/are levied by the Union and collected and appropriated by the States?
  • Stamp duties
  • Passenger and good tax
  • Estate duty
  • Taxes on newspaper
Which of the following are the associates of State Bank of India?
State Bank of Hyderabad 
State Bank of Mysore 
State Bank of Tamil Nadu 
State Bank of Travancore 
Choose the correct answer using the codes given below.
  • 1, 2 and 4
  • 3 and 4
  • 1 and 2
  • All of these
In which of the following years was the Planning Commission set-up in India?
  • 1947
  • 1948
  • 1949
  • 1950
Fiscal Responsibility and Budget Management Act was enacted in India in the year ____________.
  • 2002
  • 2005
  • 2003
  • 2007
Which one of the following companies is eligible for the financial assistance and loans from the Industrial Finance Corporation of India (IFCI)?
  • Limited Public Companies
  • Public Co-Operatives
  • Private Limited Companies
  • All of the above
Which one of the following missions of the World Bodies/ Organisation has set-up the Industrial Credit and Investment Corporation of India (ICICI) bank for the developing small and medium industries in India in the Private Sector?
  • World Bank
  • International Monetary Fund
  • Asian Development Bank
  • World Trade Organisation
With reference to Indian economy consider the following statements: 
Service Area Approach programme was started in the late 90s.
Service Area Approach was devised to bring economic growth in the assigned specific semi-urban and rural areas.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Planning Commission was set up on the recommendation of 
  • National Planning Committee
  • Gorwala Report
  • Planning Advisory Board
  • Constituent Assembly
Which body in India does the regulation of insurance sector?
  • DFHI
  • CII
  • SEBI
  • IRDA
Which one of the following banks is the new set of owner of the Unit Trust of India - $$2$$ $$(UTI-2)$$ after the repealed of original UTI Act?
  • State Bank of India
  • Bank of Baroda
  • Punjab National Bank
  • All of the above
Consider the following statements
$$1.$$ ISE is a national level stock exchange.
$$2.$$ It aims to address the needs of small companies and retail investors.
Which of the above statements is/ are correct?
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
The planning commission of India has been constituted _________________.
  • under constitutional provision with specific mention for it.
  • through an act of Parliament.
  • through a Cabinet decision in this regard.
  • through constitutional amendment.
Consider the following functions of the Foreign Exchange Management Act (FEMA)
$$1.$$ FEMA restricts activities such as payments made to any person outside India or receipts from them.
$$2.$$ FEMA imposes restriction on people living in India who carry out transactions in foreign exchange, foreign security or who own or hold immovable property abroad.
$$3.$$ FEMA regulates the exporters to furnish their export details to RBI.
Which of the statements given above is/ are correct?
  • $$1, 2$$ and $$3$$
  • $$1$$ and $$3$$
  • $$2$$ and $$3$$
  • Only $$1$$
'Liquidity trap' is a situation in which
  • people want to hold only cash because prices are falling everyday.
  • people want to hold only cash because there is too much of liquidity in the economy.
  • the rate of interest is so low that no one wants to hold interest bearing assets and people want to hold cash.
  • there is an excess of foreign exchange reserves in the economy leading to excess of money supply.
Which of the following  are true of the Central Administrative Tribunal?
It was established under the Provision of  Constitution.
It was set up by Presidential order.
It was set up in 1985.
It was set up by an Act of Parliament.
  • 1, 2 and 3
  • 1, 3 and 4
  • 3 and 4
  • 2, 3 and 4
The Deputy Chairman of Planning Commission
  • is the Prime Minister
  • is the Planning Minister
  • holds the rank of a Cabinet Minister
  • is an Economist of repute
Where is the headquarters of Forward Market Commission?
  • Mumbai
  • Delhi
  • Bangaluru
  • Hyderabad
Consider the following statements
$$1.$$ LIBOR is the primary benchmark for short-term interest rates around the world.
$$2.$$ Euribor is the usual reference rates for the euro which is compiled by the European Banking Federeation.
Which of the statements given above is/ are correct?
  • Only $$2$$
  • Only $$1$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
When did the Lead Bank Scheme to reduce the development gap between different regions of the country launched in India?
  • Towards the end of First Five Year Plan 
  • Towards the close of the second Five Year Plan 
  • Towards the close of the Plan Holiday in Indian economy 
  • Towards the end of the Eighth Five Year Plan
Which of the following statements is relation to Bombay Stock Exchange, is correct?
  • It is the oldest exchange of India
  • It is known by the name of Dalal Steet
  • It's share index is known by the name of SENSEX
  • All of the above
On which of the following items, the taxing power of the States has been restricted?
  • Taxes on professions and employments
  • Tax on import or export
  • Tax on Consumption or sale of electricity
  • Tax on health services
Bolivar is monetary unit of ______________.
  • Venezuela
  • Bolivia
  • Brazil
  • Belarus
Which of the following Development Financial Institutions in India has started the Soft Loan Scheme for the Modernisation of the Industrial sector in the country since $$1980s$$?
  • State Finance Corporations
  • Industrial Development Bank of India
  • Industrial Credit and Investment Corporation of India
  • None of the above
Which of the following is the main objective of the Service Area Approach Programme launched in India?
  • To accelerate the process to open bank branches in the urban areas 
  • To device a new strategy for rural leading to bring economic growth in rural areas 
  • To formulate new device to enhance the transparency and functioning of bank branches 
  • Both 'a' and 'c' correct 
Consider the following statements
$$1.$$ Regulation of the insider trading in the Indian secondary capital market is under the provision of SEBI.
$$2.$$ SEBI has been empower to file complaints in the court and to notify its regulation without prior approval of the government.
Which of the statements given above is/ are correct?
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
Five Year Plan in India is finally approved by _______________.
  • Union Cabinet
  • President on the advice of Prime Minister
  • Planning Commission
  • National Development Council
Which one among the following is the type of poverty which compares the total wealth of the poorest one-third of the population with the total wealth of richest 1% of the population?
  • Absolute poverty
  • Severe poverty
  • Relative poverty
  • Mass poverty
Open market operations, one of the measure taken by RBI in order to control credit expansion in the economy, means.
  • Sale or purchase of government securities
  • Issuance of different types of bonds
  • Auction of gold
  • To make available direct finance to borrowers
Which one of the following is not related to union-state relations In India?
  • Sankaria commission
  • Rajmannar Committee
  • Indra Gupta Committee
  • Punchhi Commission
Consider the following statements:
(1) Headline inflation is a measure of the total inflation within an economy.
(2) Headline inflation is affected by areas of the market which may experience sudden inflationary spikes such as food, vegetables or energy.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Which one of the following schemes/ programmes are mainly aimed to bring inclusive growth in India?
  • Swabhiman
  • MGNREGA
  • Right to Information
  • Both 'a' and 'b'
In the parlance of financial investment, the term bear denotes.
  • an investor, who feels that the price of a particular security is going to fall.
  • an investor, who expects the price of a particular share to rise.
  • a shareholder, who has an interest in a company, financially or otherwise.
  • any lender, whether by making a loan or buying a bond.
The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?
Deprivation of education, health, assets and services at household level.
Purchasing Power Parity at national level
Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below.
  • 1,2 and 3
  • 2 and 3
  • Only 2
  • Only 1
Consider the following statements:
Gini coefficient is commonly used to measure the inequality of wealth.
The Gini coefficient with a value of 1 expresses total equality and a value of 0 expresses maximum inequality.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Which of the following insurance companies is not the subsidiary of the General Insurance Company of India?
  • National Insurance Company Limited
  • New India Assurance Company Limited
  • Oriental Insurance Company Limited
  • Life Insurance Corporation of India Limited
The business in stock markets and other securities markets is regulated by _________________.
  • Securities and Exchange Board of India
  • State and Exchange Bank of India
  • Stock and Exchange Bank of India
  • Stock Trade and Exchange Bank of India
Consider the following items:
(1) Food products
(2) Energy
Which of the items given above are mainly responsible for the  Core Inflation? 
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Consider the following: deprived children
Child labour
Street children
Migrating children
Working children
Which of the children given above are covered in the Alternative Education Interventions of the SSA?
  • 1, 2, 3 and 4
  • 1, 2 and 3
  • 2 and 3
  • 3 and 4
Consider the following statements:
(1) Deflation is decrease in the general price level of goods and services.
(2) Deflation is the negative inflation rate which falls below $$0$$%.
Which of the statements given above is/are correct?
  • Only 1
  • Only2
  • Both 1 and 2
  • Neither 1 nor 2
Which one of the following factors leads to the Agflation in an economy?
  • Inflation led by rises in the Black economy
  • Deflation led by declines in agricultural commodity prices
  • Inflation led by rises in agricultural commodity prices
  • None of the above
Which one of the following is the main aim of the Dr. Ambedkar National Scholarship Scheme for meritorious students?
  • To assist meritorious students belonging to Other Backward Classes for enabling them to pursue higher studies
  • To assist meritorious students belonging to Scheduled Caste and Scheduled Tribe for enabling them to pursue higher studies
  • To assist meritorious students belonging to Scheduled Caste and Scheduled Tribe for enabling them to pursue lower primary education
  • To assist meritorious girl students belonging to Scheduled Caste and Scheduled Tribe for enabling them to pursue primary education
Consider the following statements about Rajiv Gandhi Scheme for Empowerment of Adolescent Girls SABLA:
It covers the adolescent girls in the age group of 11-18.
Under the scheme, adolescent girls will be provided Take Home Ration (THR).
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Which one of the following is the main objective of the Ujjawala Scheme launched for women and children in India?
  • To prevent the trafficking, rescue, rehabilitation, reintegration, and repatriation of women and children
  • To assist women and children below 6-years to attain self-sufficiency in the health-care and nutrition
  • To prevent women from becoming victims to maternal mortality and infant mortality in the society
  • None of the above
Which of the following is/are the main aim/aims of the Saakshar Bharat Programme started in India?
  • To enhance the focus on female literacy
  • To enhance the focus on female sanitation
  • To enhance the focus on national polio-programme
  • Both 'b' and 'c' are correct
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