Practice Quiz :- 31


1. All revenues received, loans raised and money received in repayment of loans by the Union government go into
a) Public account of India
b) Contingency fund of India
c) Consolidated fund of India
d) None of the above

Ans.c) Consolidated fund of India

2. The law of demand states that
a) demand increases with increase in income
b) when income and prices rise, the demand also rises
c) when price falls, demand increases
d) when price increases, demand increases

Ans.c) when price falls, demand increases

3. The balance of payment comprises
a) a current account of goods and services only
b) a capital account of financial assets only
c) official settlement accounts only
d) all of these

Ans.d) all of these

4. What is Net National Product?
a) The money value of final goods and services produced annually in the economy
b) The money value of annual service generation in the economy
c) The money value of tangible goods produced annually in the economy
d) The money value of tangible goods available in the economy

Ans.a) The money value of final goods and services produced annually in the economy

5. Other things being equal, what causes a decrease in demand?
a) rise in the price of the substitute
b) fall in the price of the commodity
c) rise in the income of the consumer
d) rise in the price of the commodity

Ans.d) rise in the price of the commodity

6. Deflation is
a) deficit budget
b) reduction in taxation
c) contraction in volume of money or credit that results in a decline of price level
d) increase in public expenditure

Ans.c) contraction in volume of money or credit that results in a decline of price level

7. Bank rate means
a) interest rate charged by moneylenders
b) interest rate charged by scheduled banks
c) rate of profit of the banking institution
d) the official rate of interest charged by the central bank of the country

Ans.d) the official rate of interest charged by the central bank of the country

8. Which agency estimates the national income of India?
a) Reserve Bank of India
b) Planning Commission
c) Ministry of Finance
d) Central Statistical Organization

Ans.d) Central Statistical Organization

9. What is Gross National Product?
a) the total output of goods and services produced by the country’s economy
b) the total domestic and foreign output claimed by residents of the country
c) the sum of gross domestic product and investment
d) national income minus national expenditure

Ans.b) the total domestic and foreign output claimed by residents of the country

10. The Government of India acquired the ownership and control of major banks in 1969 whose deposits were not less than
a) Rs 40 crore
b) Rs 50 crore
c) Rs 60 crore
d) Rs 80 crore

Ans.b) Rs 50 crore