Practice Quiz :- 20

1. In which of the following years India switched over to decimal currencies?
(a) 1955
(b) 1956
(c) 1957
(d) 1960
2. In which year the Indian rupee was devalued two times within a month?
(a) 1990
(b) 1991
(c) 1994
(d) 1999
3. During which five year plan the price level in Indian Economy showed a decline?
(a) Plan I
(b) Plan II
(c) Plan IV
(d) Annual plans

Ans.(b) Plan II

4. The one rupee note bears the signature of the
(a) Secretary,Ministry of Finance
(b) Governor, RBI
(c) Finance minister
(d) None of these

Ans.(a) Secretary,Ministry of Finance

5. The basis of determining dearness allowance (D.A.) to Government employees in India is
(a) National Income
(b) Consumer price Index
(c) Standard of living
(d) Per capita Income

Ans.(b) Consumer price Index

6. Economic growth is usually coupled with
(a) Deflation
(b) Inflation
(c) Hyper inflation
(d) Stagflation

Ans.(b) Inflation

7. Tarapore committee was associated with which one of the following?
(a) Special Economic Zone
(b) Fully Capital Account Convertibility
(c) Effect of Oil-prices on the Indian Economy
(d) Foreign Exchange Reserve

Ans.(b) Fully Capital Account Convertibility

8. Which of the following is not true when the interest rate in the economy goes up?
(a) Saving increases
(b) Lending decreases
(c) Cost of production increases
(d) Return on capital increases

Ans.(d) Return on capital increases

9. High rates of interest in a low inflation region
(a) attract people to make an investment
(b) discourage people to make an investment
(c) create atmosphere for capital formation
(d) are not favourable for credit expansion

Ans.(a) attract people to make an investment

10. The slogan of ‘poverty abolition’ was given in which Five year plan?
(a) Second plan
(b) Fourth plan
(c) Fifth plan
(d) Sixth plan

Ans.(c) Fifth plan