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

Economic growth is usually coupled with __________.
  • deflation
  • inflation
  • stagflation
  • hyper inflation
Pradhan Mantri Jan-Dhan Yojana has been launched for _________.
  • promoting women's Self-Help Groups in backward areas
  • promoting financial inclusion in the country
  • providing financial help to the marginalised communities
  • providing housing loan to poor people at cheaper interest rates
Which one of the following is correct about the Philips Curve of an economy?
  • An inverse relationship between the rate of unemployment and the rate of inflation
  • A directly proportionate of the rate of unemployment and the rate of the inflation
  • An inverse relationship between the rate of GDP growth and the rate of inflation
  • A directly proportionate of the rate of unemployment and the rate of unemployment
Which one of the following is commonly occurred in the biflation in an economy?
  • Inflation
  • Deflation
  • Disinflation
  • Both 'a' and 'b'
Consider the following statements:
(1) Headline inflation may not present an accurate picture of the current state of the economy.
(2) Inflationary spikes occur when a particular section of the economy experiences a sudden price rise.
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 related with the core inflation of an economy?
  • Inflation which excludes certain items that face volatile price movements
  • Inflation which includes certain items that face volatile price movements
  • Inflation due to rise in the production of non-agricultural products
  • Both 'a' and 'b'
A rapid increase in the rate of inflation is sometimes attributed to the 'Base Effect'. What is the 'Base Effect'?
  • It is the impact of drastic deficiency in supply due to failure of crops.
  • It is the impact of the surge in demand due to rapid economic growth.
  • It is the impact of price levels of the previous year on the calculation of inflation rate.
  • None of the above
With reference to Indian economy, consider the following statements:
(1) Three types of Consumer Price Index are used in the determination of Consumer Price Index.
(2) Consumer Price Index of Industrial Worker and Consumer Price Index of Rural Labour has given same weight in the determination of inflation.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Which one among the following is an appropriate description of deflation?
  • It is a sudden fall in the value of a currency against other currencies
  • It is a presistent recession in the economy
  • It is persistent fall in the general price level of goods and services
  • It is fall in the rate of inflation over a period of time
Which one of the following has been the main measure of the rate of inflation in India?
  • Consumer Price Index
  • Consumer Price Index-Industrial worker
  • Consumer Price Index-Agricultural labour
  • Wholesale Price Index
Consider the following statements:
(1) Disinflation is a decrease in the rate of inflation.
(2) In the disinflation, the inflation is falls below the zero percent level.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and  2
  • Neither 1 nor 2
Consider the following services/goods:
(1) Police
(2) National defence
(3) Tax subsidies
Which of the services/goods given above is/are included in the 'public goods' of an economy?
  • 1 and 2
  • 1 and 3
  • 2 and 3
  • Only 2
Consider the following sectors
Animal husbandry 
Dairy
Handlooms
Wasteland development
Social forestry
Sericulture
Which of the sectors given above are included in the skill development under Support to Training and Employment Programme (STEP) for Women Scheme?
  • 1,2, 4, 5 and 6
  • 1,3, 5 and 6
  • 1, 4,5 and 6
  • All of the above
Which one of the following is related with the Atkinson's Index of an economy?
  • A method to determine the income inequality
  • An effect of supply-demand mismatch
  • A method to determine the unemployment
  • None of the above
Which one of the following is the nature of the Beveridge curve when there is a decrease in frictional unemployment that reduces the number of firms searching for employees and the number of unemployed searching for jobs?
  • The curve will become parabolic shape.
  • The curve will become hyperbolic shape.
  • The curve will be shifted towards origin.
  • The curve will remain unchanged.
Consider the following statements:
(1) Tobin tax is a tax on all spot conversions of one currency into another.
(2) Tobin tax is a currency transaction tax to find a way to manage exchange rate volatility.
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 is not the function of Reserve Bank of India?
  • Provide credit facility to the general public 
  • Keep government money in various account heads 
  • Frame monetary and credit policy 
  • All are RBI's functions 
Which one of the following unemployment is the form of unemployment resulting from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment?
  • Structural unemployment
  • Marxian unemployment
  • Disguised unemployment
  • Classical unemployment
Which of the following terms indicates mechanism used by commercial banks for providing credit to Government?
  • Cash Credit Ratio 
  • Debt Service Obligation 
  • Liquidity Adjustment Facility 
  • Statutory Liquidity Ratio 
Which one of the following inflation is the type of inflation that results from past events and persists in the present?
  • Hyperinflation
  • Sogflation
  • Built-in inflation
  • Biflation
When the Reserve Bank of India announces an increase in the Cash Reserve Ratio (CRR)? What does it mean?
  • The commercial banks will have less money to lend 
  • The Reserve Bank of India will have less money to lend 
  • The Union Government will have less money to lend 
  • None of the above 
Consider the following statements: 
The National Housing Bank , the apex institution of housing finance in India, was set up as a wholly owned subsidiary of the RBI.
The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India.
 Which of the statement given above is/are correct? 
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Which one of the following is the composition of Liquidity aggregate--2 (L2) other than Liquidity aggregate - 1 (L1) in the Indian Monetary System ?
  • Term deposits with Term Lending Institutions and Refinancing Institiutions
  • Term Borrowing by Refinancing Institutions
  • Certificates of Deposit issued by Refinancing Institutions
  • All of the above
As per the recent report published in newspapers/magazines, India ranks at a l-power level in Hunger Index. The Hunger Index is measured on which of the following indicators?
Number of people who are calories- deficient
Child malnutrition
Rate of child mortality
Which of the statements given above is/are correct?
  • 1 and 2
  • 1 and 3
  • Only 2
  • All of the above
Government of India, for the first time, nationalised 14 large commercial banks in the year _______.
  • 1956
  • 1959
  • 1969
  • 1963
Which one of the following is the basic objective for the setting up of Regional Rural Banks (RRBs) in India?
  • Development of more diverse banking systems in Indian money market
  • Diversification of scheduled commercial banking systems in India to tap the deposits potential of rural areas
  • Development of rural areas by providing credit to agriculture, trade, commerce and other productive activities in rural areas
  • Both 'a' and 'b'
Which one of the following is correctly matched?
          Bank                               Headquarters
1 . Federal Bank                                           :  Kerala
2 . Dhanlaxmi  Bank Limited                       : Maharashtra
3 . Industrial  Bank  Limited                         : Delhi
Select the correct answer using the codes given below. 
  • 1 and 2
  • Only 2
  • 2 and 3
  • Only 1
Consider the following the statements:
The price of any currency in international market is decided by the 
1) World Bank.
2) demand for goods/services provided by the country concerned.
3) stability of the government of the concerned country.
4) economic potential of the country in question.
Which of the statement(s) given above is/are correct?
  • 1, 2, 3 and 4
  • 2 and 3
  • 3 and 4
  • 1 and 4
Which one of the following is emerged as a major instrument of Monetary Policy in the Indian economy?
  • Liquidity Adjustment Facility
  • Commercial Papers
  • Treasury Bills
  • None of the above
With reference to Okun's law, consider the following statements
A one point increase in the unemployment rate is associated with two percentage points of negative growth in real GDP.
High employment in an economy leads to losses in a country's production.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
What will be the nature of the Beveridge curve when there is prevalent of the long term unemployment due to deterioration of human capital or a negative perception of the unemployed by the potential employers in an economy?
  • The curve will be shifted towards the origin.
  • The curve will become negative.
  • The curve will be shifted away from the origin.
  • None of the above
Consider the following statements with regard to SLR:
1) To meet SLR, commercial banks can use cash only.
2) SLR is maintained by the banks with themselves.
3) SLR restricts the banks leverage in pumping more money into the economy.
Which of the statement(s) given above is/are correct?
  • 1 and 2
  • 1 and 3
  • 2 and 3
  • Only 2
Which of the following factors of an economy is/are related with Stagflation?
Low unemployment rate 
High unemployment rate 
High inflation rate 
Low inflation rate 
Select the correct answers using the codes given below?
  • 1 and 3
  • 1 and 4
  • 2 and 3
  • 2 and 4
Which one among the following is the precious metal (Gold) or other approved securities that a commercial bank must maintain as reserves other than the cash with RBI?
  • Cash Reserve Requirement
  • Statutory Liquidity Requirement
  • Forward Fund
  • Reserve Money
Which one of the following sub-sector of the services sector in India has contributed the highest per cent in the annual growth rate of the GDP?
  • Real estate, ownership of dwellings and business services
  • Community, social, and personal services
  • Transport, storage, and communication
  • Trade, hotels, and restaurants
Consider the following statements
Under the Differential Rate of Interest Scheme, the public sector banks are required to lend at least one per cent of the total advances as at the end of the preceding year to the weakest of the weak sections of the society.
Under the Differential Rate of Interest (DRI) Scheme, the interest rate of advances made to the weakest of the weak sections of the society 4% per annum.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Consider the following factors regarding the Structural Unemployment of an economy
Mechanisation of agriculture
Geographical factors or locations
Adoption of robotic technologies to replace unskilled labourers
Which of the factors given above are correct?
  • 1 and 2
  • 1 and 3
  • 2 and 3
  • All of these
Which one of the following countries has the highest percentage share of services sector in the country's GDP?
  • China
  • Japan
  • Brazil
  • India
The Reserve Bank of India regulates the commercial banks in matters of: 
1) liquidity of assets 
2) branch expansion 
3) merger of banks
4) winding-up of banks 
Select the correct answer using the codes given below.
  • 1 and 4
  • 2, 3 and 4
  • 1, 2 and 3
  • 1, 2, 3 and 4
Which one of the following unemployments is also known as search unemployment which occurs at  the time period between jobs when a worker is searching for or transitioning from one job to another?
  • Seasonal unemployment
  • Frictional unemployment
  • Classical unemployment
  • None of the above
Which one of the following services is included in the services sector of Indian Economy?
  • Transport, storage and communication
  • Financing, insurance, real estate, and business services
  • Community, social and personal services
  • All of the above
Which one of the following laws/curves stated that the lower the unemployment in an economy, the higher the rate of inflation?
  • Gini's Curve
  • Verdoorn's law
  • Gibrats law
  • Phillips curve
Consider the following statements
International Development Association (IDA) is a member of the World Bank Group
IDA complements the International Bank for Reconstruction and Development by lending to development by leading to developing countries which suffer from the lowest gross national income, from troubled credit-worthiness, or from the lowest per capita income
International Development Association and International Banks for Reconstruction and Development are collectively known as the World Bank
Which of the statements given above are correct?

  • 1 and 2
  • 1 and 3
  • 2 and 3
  • All of these
Consider the following sectors of the Indian economy with respect to share of employment:
$$1.$$ Agricultural Sector
$$2.$$ Industrial Sector
$$3.$$ Service Sector
Arrange these sectors from the highest to lowest in the term of share of employment and select the correct answer using the codes given below.
  • $$1, 2, 3$$
  • $$1, 3, 2$$
  • $$3, 1, 2$$
  • $$3, 2, 1$$
Which one of the following is the act of stimulating the economy by increasing the money supply or by reducing taxes?
  • Disinflation
  • Reflation
  • Inertial Inflation
  • Inflation hedge
Which one of the following services of the Services sector in the Indian Economy contributed the highest percentage in the Gross Domestic Product at the Factor Cost in the last ten years?
  • Hotels and restaurants
  • Railways transport
  • Banking and insurance
  • Trade
Which one of the following services of the Indian Economy has the highest percentage of share in the services sector export?
  • Computer software
  • Financial and non-financial
  • Computer hardware
  • Legal consultancy
Consider the following statements: 
1) Reserve Bank of India was nationalised in the year 1955.
2) Reserve Bank of India is a member bank of the Asian Clearing Union.
Which of the statement(s) given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Supply of money remaining the same when there is an increase in demand for money, there will be _____________.
  • a fall in the level of prices
  • an increase in the rate of the interest
  • a decrease in the rate of interest
  • an increase in the level of income and employment
What is the contribution of service sector to employment generation in India?
  • $$40$$%
  • $$56$$%
  • $$15$$%
  • $$23$$%
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