Active Market
This is a term used by stock exchange which specifies the particular stock or share which deals in frequent and regular transactions. It helps the buyers to obtain reasonably large amounts at any time.
Administered Price
The administrative body e.g., the government a marketing board or a trading group determines this price. The competitive market force are not entitled to determine this price. The government fixes a price in accordance with demand supply portion in the market.
Ad-valorem Tax
Ad-valorem tax is a kind of indirect tax in which goods are taxed by their values. In the case of ad-volorem tax, the tax amount is calculated as the proportion of the price of the goods. Value added Tax (VAT) is an ad-volorem Tax.
Advanced Countries
Advanced countries are countries which are industrially advanced, having high national and per capita income and ensure high rate of capital formation. These countries possess highly developed infrastructure and apply most updated and advanced technical know-how in their productive activities. A strong and well organised financial structure is found in these advanced countries.
Amalgamation
It means ‘merger’. As and when necessity arises two or more companies are merged into a large organisation. This merger takes place in order to effect economies, reduce competition and capture market. The old firms completely lose their identity when the merger takes place.
Appreciation
Appreciation means an increase in the value of something e.g., stock of raw materials or manufactured goods. It also includes an increase in the traded value of a currency. It is the antonym of Depreciation. When the prices rise due to inflation, appreciation may occur. It causes scarcity or increase in earning power.
Arbitrage
When a person performs functions of middle man and buys and sells goods at a particular time to cash the price differences of two markets, this action is termed as arbitrage. Purchases are made in the market where price is low and at the same time, goods are sold in other market where the price are high. Thus the middleman earns profit due to price difference in two markets.
Arbitration
Where there is an industrial dispute, the Arbitration comes to the force. The judgement is given by the Arbitrator. Both the parties have to accept and honour the Arbitration. Arbitration is the settlement of labour disputes that takes place between employer and the employees.
Auction
When a commodity is sold by auction, the bids are made by the buyers. Whose ever makes the highest bid, gets the commodity which is being sold. The buyers make the bid
taking into consideration the quality and quantity of the commodity.
Autarchy
If a country is self-sufficient, it does not require the imports for the country. Autarchy is an indicator of self-sufficiency. It means that the country itself can satisfy the needs of its population without making imports from other countries.
Automation
Automation means the use of machinery & technology to replace the labour’s work. Automation increases the demand of skilled workers. Unskilled and semiskilled workers are reduced as a result of automation.
Balanced Budget
When the total revenue of the government exactly equals the total expenditure incurred by the government, the budget becomes a balanced budget. But it is a conservative view point. In present days, the welfare government has to regulate a number of economic and social activities which increase the expenditure burden on the government and results in deficit budget.
Balance of Payment
Balance of payment of a country is a systematic record of all economic transactions completed between its residents and the residents of remaining world during a year. In other words, the balance of payment shows the relationship between the one country's total payment to all other countries and its total receipts from them. Balance of payment is a comprehensive term which includes both visible and invisible items. Balance of payment not only include visible export and imports but also invisible trade like shipping, banking, insurance, tourism, royalty, payments of interest on foreign debts.
Balance of Trade
Balance of trade refers to the total value of a country's export commodities and total value of imports commodities. Thus balance of trade includes only visible trade i.e., movement of goods (exports and imports of goods). Balance of trade is a part of Balance of payment statement.
Balance Sheet
Balance sheet is a statement showing the assets and liabilities of a business at a certain date. Balance sheet helps in estimating the real financial situation of a firm.
Bank
Bank is a financial institution. It accepts funds on current and deposit accounts. It also lends money. The bank pays the cheques drawn by customers against current and deposits accounts. The bank is a trader that deals in money and credit.
Bank Draft
Banker's draft is a negotiable claim drawn upon a bank. Drafts are as good as cash. The drafts cannot be returned and unpaid. Draft is issued when a customer shows his unwillingness to accept cheque in payment for his services or mercantile goods. Bank Draft is safer than a cheque.
Bank Rate
Bank Rate is the rate of discount at which the central bank of the country discounts first class bills. It is the rate of interest at which the central bank lends money to the lower banking institutions. Bank rate is a direct quantitative method of credit control in the economy.
Bilateralism
It implies an agreement between two countries to extend to each other specific privileges in their international trade which are not extended to others.
Birth Rate
Birth Rate (or Crude Birth Rate) is number of the births per thousand of the population during a period, usually a year. Only live births are included in the calculation of birth rate.
Black Money
It is unaccounted money which is concealed from tax authorities. All illegal economic activities are dealt with this black Money. Hawala market has deep roots with this black money. Black money creates parallel economy. It puts an adverse pressure on equitable distribution of wealth and income in the economy.
Blue Chip
It is concerned with such equity shares whose purchase is extremely safe. It is a safe investment. It does not involve any risk.
Blue Collar Jobs
These Jobs are concerned with factory. Persons who are unskilled and depend upon manual jobs that require physical strain on human muscle are said to be engaged in Blue Collar Jobs. In the age of machinery, such Jobs are on the decline these days.
Brain-Drain
It means the drift of intellectuals of a country to another country. Scientists, doctors and technology experts generally go to other prominent countries of the world to better their lot and earn huge sums of money. This Brain-Drain deprives a country of its genius and capabilities.
Bridge Loan
A loan made by a bank for a short period to make up for a temporary shortage of cash. On the part of borrower, mostly the companies for example, a business organization wants to install a new company with new equipments etc. while his present installed company / equipments etc. are not yet disposed off. Bridge loan covers this period between the buying the new and disposing of the old one.
Budget
It is a document containing a preliminary approved plan of public revenue and public expenditure. It is a statement of the estimated receipt and expenses during a fixed period, it is a comparative table giving the accounts of the receipts to be realized and of the expenses to be incurred.
Budget Deficit
Budget may take a shape of deficit when the public revenue falls short to public expenditure. Budget deficit is the difference between the estimated public expenditure and public revenue. The government meets this deficit by way of printing new currency or by borrowing.
Bull
Bull is that type of speculator who gains with the rise in prices of shares and stocks. He buys share or commodities in anticipation of rising prices and sells them later at a profit.
Bull Market
It is a market where the speculators buy shares or commodities in anticipation of rising prices. This market enables the speculators to resale such shares and make a profit.
Buoyancy
When the government fails to check inflation, it raises income tax and the corporate tax. Such a tax is called Buoyancy. It concerns with the revenue from taxation in the period of inflation.
Business Cycle
Business cycle (also known as trade cycle) are species of fluctuations in the economic activity of organised communities. It is composed of period of good trade characterised
by rising prices and low unemployment, alternating with period of bad trade characterised by falling prices and high unemployment. Every trade cycle have five different subphases–depression, recovery, full employment, prosperity (boom) and recession.
Call Money
Call money is in the form of loans and advances which are payable on demand or within the number of days specified for the purpose.
Capital Budgeting
Capital budgeting represents the process of preparing budget for a period of a year or even for several years allocating capital outlays for the various investment projects. In other words, it is the process of budgeting capital expenditure by means of an annual or longer period capital budget.
Capital-labour Ratio
Latest models of machinery and equipment raise the labour efficiency and the output is maximized. Capitallabour ratio is the amount of capital against the given labours that a firm employs. Capital-labour ratio is the ratio of capital to labour.
Capital Market
Capital market is the market which gives medium term and long term loans. It is different from money market which deals only in short term loans.
Capitalism
Capitalism is an economic system in which all means of production are owned by private individuals Selfprofit motive is the guiding feature for all the economic activates under capitalism. Under pure capitalism system economic conditions are regulated solely by free market forces. This system is based on ‘Laissez-faire system’ i.e., no state intervention. Sovereignty of consumer prevails in this system. Consumer behaves like a king under capitalism.
Cash Reserve Ratio (CRR)
The commercial banks are required to keep a certain amount of cash reserves at the central bank. This percentage amount is called CRR. It influences the commercial bank’s volume of credit because variation in CRR affects the liquidity position of the banks and hence their ability to lend.
Census
Census gives us estimates of population. Census is of great economic importance for the country. It tells us the rate at which the total population is increasing among different age groups. In India census is done after every 10 years. The latest census in India has been done in 2001.
Central Bank
Central Bank may be defined as the apex barking and monetary institution whose main function is to control, regulate and stabilize the banking and the monetary system of the country in the national interest.
Cheque
Cheque is an order in writing issued by the drawer to a bank. If the customer has sufficient amount in his account, the cheque is paid by the bank. Cheques are used in place of cash money.
Clearing Bank
Clearing bank is one which settles the debits and credits of the commercial banks. Even of the cash balances are lesser, clearing bank facilitates banking operation of the commercial bank.
Clearing House
Clearing house is an institution which helps to settle the mutual indebtedness that occurs among the members of its organisation.
Closed Economy
Closed economy refers to the economy having no foreign trade (i.e., export and import). Such economies depend exclusively on their own internal domestic resources and have
no dependence on outside world.
Collusion
Producers of an industry reduce competition among themselves to raise their profits. They fix the price themselves with a clear understanding in this regard. This understanding among different firms is called collusion.
Coinage
Art and practice of making coins is called coinage. The metal is melted and moulded to shape into a coin. The coinage is a medium of exchange (money).
Collectivism
Collectivism is a belief that nation's interest is superior to individual interest. This is the collective thinking of the society and polity national leaders and also communist opine the theory of collection.
Commercial Bank
Commercial Bank is an institution of finance. It deals with the banking services through its branches in whole of the country. Operation of current accounts, deposits, granting of loans to individuals and companies etc. are various functions of the commercial bank.
Communism
Communism is a political and economic system in which the state makes the major economic decision State owns the bulk of capital assets. Responsibility for production and distribution lies with the state in this system.
Core Sector
Economy needs basic infrastructure for accelerating development. Development of infrastructure industries like cement, iron and steel, petroleum, heavy machinery etc. can only ensure the development of the economy as a whole. Such industries are core sector industries.
Corporation Tax
It is a tax on company's profit. It is a direct tax which is calculated on profits after interest payments and allowance (i.e., Capital allowance) have been deducted but before dividends are allowed for.
Cost-push Inflation
It arises due to an increase in production cost. Such type of inflation is caused by three factors : (i) an increase in wages, (ii) an increase in the profit margin and (iii) imposition of heavy taxation.
Credit Rationing
Credit rationing takes place when the banks discriminates between the borrowers. Credit rationing empowers the bank to lend to some and to refuse to lend to others. In this way credit rationing restricts lending on the part of bank.
Credit Squeeze
Monetary authorities restrict credit as and when required. This credit restriction is called credit squeeze. Monetary authorities adopt the policy of credit squeeze to control inflationary pressure in the economy.
Custom Duty
Custom duty is a duty that is imposed on the products received from exporting nations of the world. It is also called protective duty as it protects the home industries.
Cyclical Unemployment
It is that phase of unemployment which appears due to the occurrence of the downward phase of the trade cycle. Such an employment is reduced or eliminated when the business
cycle turns up again.
Dear Money
Dear money is that money which can only be borrowed at a high rate of interest. In dear money policy, bank rate and other rates of interest are high and as a result borrowing becomes expensive. Dear money policy is deliberate policy which is adopted by the monetary authorities to check inflation in the economy.
Death Duty
It is a direct tax which is imposed on the estate of deceased person. Death duty or Death Tax is a form of personal tax on property which is levied when property passes from one person to other at the time of death of the former.
Death Rate
Death rate signifies the number of deaths in a year per thousand of the population. It is mostly known as crude death rate. Life expectancy is important determinant of death rate.
A country having high life expectancy will have a high crude death rate.
Decentralisation
Decentralisation means the establishment of various unit of the same industry at different places. Large scale organisation or industry can not be run at one particular place or territory. In order to increase the efficiency of the industry, various units at different places are located.
Debt Service (Total)
The sum of principal repayments and interest actually paid in foreign currency, goods and services on longterm debt (having maturity of more than one year), interest paid on shortterm debt and repayments to IMF.
Deficit Financing
It is a practice resorted to by modern government of spending more money than it receives in revenue. It is a policy of bridging a deficit between governments expenditure and revenue. Deliberately budgeting for a deficit is called deficit financing. This practice was popularised by Prof. J. M. Keynes to deal with the depression and unemployment situations and to stimulate economic activity. Deficit financing, though having inflationary effects, has now become a common practice in all countries.
Deflation
Deflation is the reverse case of inflation. Deflation is that state of falling prices which occurs at that time when the output of goods and services increases more rapidly than the volume of money in the economy. In the deflation the general price level falls and the value of money rises.
Devaluation
The loss of value of currency of a country relative to other foreign currency is known as devaluation. Devaluation is a process in which the government deliberately cheapens the exchange value of its own currency in terms of other currency by giving it a lower exchange value. Devaluation is used for improving, the balance of payment situation in the country.
Direct Tax
A tax is said to be a direct tax when it is not intended to be shifted to anybody else. The person who pays it in the first instance is also excepted to bear it. Thus the impact and incidence of direct tax fall on the same person shifting of direct tax is not possible Income Tax is a example of direct tax.
Disinflation
It refers to a process of bringing down prices moderately from their high level without any adverse impact on production and employment. Thus, disinflation is an anti-inflationary measure.
Dissaving
Dissaving occurs when expenditure exceeds income. Raising of loans or utilization of past accumulated savings takes place in such eventuality.
Dividend
Dividend is the amount which the company distributes to shareholders when the profits of the company are calculated by the board of directors.
Economic Integration
Economic integration appears when two or more nations coordinate themselves and their economies are linked up. It may exhibit itself in the form of free trade area or a full economic union. EEC is an example of economic integration.
Engel's Law
This law was formulated by Ernst Engel. This law states that, with given taste and preference, the portion of income spend on food diminishes as income increases. According to this law, smaller a person's income, the greater the proportion of it that he will spend on food and vice versa.
Estate Duty
It is a tax which is levied on the estate of a decreased person. It is also known as death duty. The ownership of state changes hands only after the payments of the estate duty. It is an progressive tax in nature.
Excise Duty
It is a tax which is imposed on certain indigenous production (e.g., petroleum products, cigarettes etc.) of the country. Excise duty may be imposed either to raise revenue or to check the consumption of the commodities on which they are imposed. Excise duty is progressive in nature.
Face Value
It refers to that normal value of coin at which the coin circulates and is accepted in the discharge of debit or obligation. Broadly speaking, the face value refers to domination stamped on a coin / or documents when it is issued. In securities, it refers to par value.
Fascism
It is a form of political system. In it every economic consideration rests on one criterion—the increase in the people's standard of living. It also lays emphasis on military
strength and prestige of the country. It is the extreme nationalism and the ultimate goal is self-sufficiency.
Federal Economy
It refers to a federation which is an association of two and more states. A federal state is a union of state in which authority is divided between the federal (or central) government and the state governments. In a federal economy both the centre and the states are independent in the exercise of this authority.
Fiduciary Issue
Generally bank-note are backed by gold. But when they are not backed by gold and government securities replace gold, it is called fiduciary issue. Such fiduciary issue results in inflation.
Fertility Rate
The term fertility refers to the actual bearing of children or ‘occurrence of births’. Fertility rate measures the average number of the live births per 1000 women. This rate is one of the most important and useful aids to population projection. It helps in assessing population trends in the economy.
Fiscal Policy
Fiscal policy is that part of government economic policy which deals with taxation, expenditure, borrowing, and the management of public debt in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. It exerts a very powerful influence on the working of economy as a whole.
GEM
GEM (Gender Empowerment Measure) is a composite index measuring gender inequality in three basic dimensions of empowerment–economic participation and decision making, political participation and decision making, and power over economic resources.
GDI
GDI (Gender Related Development Index) is a composite index measuring average achievement in the three basic dimensions captured in the human development index–a long and healthy life, knowledge and a decent standard of living–adjusted to account for inequalities between men and women.
Gini-coefficient
It represents the measurement of inequality derived from the ‘Lorenz Curve,’ with every increase in the degree of inequality, the curvature of the Lorenz Curve also increases and
the area between the curve and 45line becomes larger.
The Gini-coefficient is measured as—
G =Area between Lorenz Curve & 45Line/Area above the 45Line
Giffin Goods
Giffin goods have the positive relationship between price and quantity demanded and as a result demand curve of Giffin goods slopes upward from left to right. This phenomenon was first observed by Sir Robert Giffin in relation to the demand for bread by poor labours.
Gresham's Law
“Bad money (if not limited in quantity) drives good money out of circulation”—This statement was given by Sir Thomas Gresham, the economic Adviser of Queen Elizabeth. This law states that people always want to hoard good money and spend bad money when two forms of money are in circulation at the same time.
Gross Domestic Product (GDP)
It is the money value of all final goods and services produced within the geographical boundaries of the country during a given period of time (usually a year). GDP can be calculated both at current prices and at constant prices. If we add net factor income from abroad to the GDP, we get ‘Gross National Product’ (GNP).
Gross National Product (GNP)
It refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time, generally a year.
Gross National Product Deflator
It is a Price Index Number used to correct the money value of Gross National Product (GNP) for price changes so as to isolate the changes which have taken place in the physical output of goods and services.
Guild Socialism
This form of socialism accepts the leadership of artisans. The operation of the whole economy specially the management and control of industries lies in the hands of artisans Socialism established by artisans is termed a Guild Socialism.
HDI
HDI (Human Development Index) is a composite index measuring average achievement in three basic dimensions of human life–a long and healthy life, knowledge and a decent standard of living.
Import Duty
Import duty is a tax on imports imposed on an ad-valorem basis i.e., fixed in the form of a percentage on the value of the commodity imported.
Indirect Tax
Indirect tax is that tax which is levied on goods or services produced or purchased. Indirect taxes are those which are demanded from one person in the expectation and intention that he shall indemnify himself at the expense to another.
Inflation
A situation of a steady and sustained rise in general prices is usually known as inflation. Inflation is a state in which the value of money is falling i.e., prices are rising.
Joint Demand
Joint demand appears in case of complementary goods. When two commodities are complementary to one another and cannot be used separately, they have joint demand. Bread and butter, sugar and tea, pen and ink are a few examples of joint demand. In joint demand a change in demand of one commodity bring about the proportionate change in demand for the other.
Joint Sector
When a sector is jointly owned, managed and run by both public and private sector, it is called joint sector. This sector indicates the partnership between the two i.e., public and private sector.
Labour Union
Labour union represents that organisation of workers which works for improving working condition of labours and also for raising their wage by adopting ‘collective bargaining’ measures with the management of the industry in particular.
Laffer Curve
This curve is given by American economist Prof. Arthur Laffer. It represents relationship between total tax revenue and corresponding tax rates.
Laissez Faire
It is a French word meaning ‘non-interference’. This doctrine was popularised by classical economists who gave the view that government should interfere as little as possible in the economic activities of the individuals.
Life Expectancy at Birth
The number of years a newborn infant would live if prevailing pattern of age specific mortality rates at the time of birth were to stay the same throughout the child’s life.
Liquidation
It refers to the termination (or winding up) of a registered company. Liquidation takes place because of company's insolvency. In liquidation, assets are turned into cash for settling outstanding debts and for apportioning the balance, if any, amongst the owners.
Liquidity
Assets which can easily be converted into cash money are said to have liquidity. Land does not possess liquidity at it takes longer time to get converted into cash.
Liquidity Ratio
The commercial banks under banking regulations have to maintain a certain specified proportion of their total deposits of various categories in liquid assets. This maintainable proportion is called liquidity ratio.
Lock-out
Lock-out refers to such a situation when the management does not permit the workers to work unless they agree to accept the employer's term. Lock-out is the closing of work by the management for an uncertain period of time to put pressure on the labour union. It is an action by the employer equivalent to a strike by employees.
Lorentz Curve
This curve shows the degree of inequalities of a frequency distribution in a graphical manner. It is a curve on a graph which shows the cumulative proportion of a statistical population against this cumulative share of some characteristic. This curve is commonly used to depict income distribution showing the cumulative percentage of people from the poorest up and their cumulative share of national income.
Lump Sum Tax
Lump sum tax is a fixed amount which has imperative nature irrespective of the income level. This tax is not equitable in nature.
Merit Goods
Merit goods refer those goods that are very essential to the society as a whole and hence the government ensures their availability to all consumers, regardless of their ability to pay to reasonable price.
Mixed Economy
It refers to that economic system in which both private and public sector co-exists. Indian economy is an example of a mixed economy.
Monetary Policy
Monetary policy comprises all measures applied by the monetary authorities with a view to produce a deliberate impact on the nature and volume of money so as to achieve the objectives of general economic policy. It aims at regulating the flow of currency, credit and other money substitutes in an economy with a view to affect the total stock of such assets as well as to influence the demand of the community for such assets.
Monetary Reforms
When a new currency is introduced in a country due to hyperinflation or due to a deliberate policy measure (such as decimalization) it is termed as monetary reform.
Monopoly
Monopoly refers to that market structure where there is only one seller in the market who controls the entire market supply and no substitute of the product is available in the market.
Monopsony
Monopsony is that market situation in which there is only one single buyer of the product in the market. In other word, ‘buyer's monopoly’ is termed as monopsony.
Multinational Company
It is a large scale company which has its production base in several countries and the bulk of the production is produced in outside nations. This company produces more overseas
than they do in its parent country. Increased trade and economies of scale have encouraged such type of companies in the recent years.
National Income
In the simplest way it can be defined as ‘factor income accruing to the national residents of a country.’ It is the sum of domestic factor income and net factor income earned from abroad. Net national product at factor cost is called national income.
Net National Product (NNP)
When depreciation is deducted from GNP i.e., Gross National Product, we get Net National Product (NNP).
Oligopoly
Oligopoly is that form of imperfect competition in which there are only a few firms in the industry (or group) producing either homogeneous products or may be having product differentiation in a given line of production.
Open Economy
Open economy is that economy which is left free and the government imposes no restrictions on trade with areas outside that economy.
Okun’s Law
Arthur Okun presented an empirical relationship between cyclical movements in GNP and unemployment. Okun found that an annual 2•5% increase in the rate of real growth above the trend growth results in a 1% decrease in the rate of unemployment. This relationship is known as Okun’s Law.
Perfect Competition
Perfect competition is the market in which there are many firms selling identical products with no firm large enough relative to the entire market to be able to influence market price.
Poverty Line
Poverty line is a virtual line demarcating persons living below and above it. In India all those persons are treated living below poverty line who are not able to earn that much of income which is not sufficient to acquire food equivalent to 2100 calories per person per day in urban areas and 2400 calories per person per day in rural areas. As per UNDP, one US dollar (1993 PPP US $) per person per day is treated as poverty line.
PQLI
PQLI is known as Physical Quality of Life Index which is used to assess the level of social development. This index was developed by Jim Grant for The Overseas Development Council PQLI is calculated by using indices of (i) Adult literacy rate, (ii) IMR, (iii) Life Expectancy.
Price Mechanism
Price mechanism signifies the working of those market forces which establishes equilibrium in the economy. Laissez faire policy is the basis for the working of price mechanism.
Price Ring
It is an unofficial syndicate by which the prices are controlled with the prior understanding among the traders. These dealers under a price ring decide not to over-bid one another at the public auction to keep the prices low. This price ring may discourage outsiders from coming to the auctions.
Private Sector
Private Sector is that part of the economy which is not owned by the government and is under the hands of private enterprise. In other words, private sector is not under direct government control. Private sector includes the personal as well as the corporate sector.
Privatisation
Privatisation is the antithesis of nationalisation. When the government owned public industries are denationalised and the disinvestment process is initiated, it is called privatisation.
Public Debt
Public debt represents borrowing by the state and public authorities. All loans taken by the public authorities constitute public debt.
Public Goods
Public goods are those goods which belong to the entire community. None of the individual of the society can be made deprived of using these public goods. National defence, Police, Street lighting etc. are examples of public goods.
Public Sector
Public sector signifies those undertakings which are owned, managed and run by public authorities. Public sector includes direct government enterprise, the nationalized industries and public corporations. In this sector of the economy the government acts itself as an entrepreneur.
Peril Point
It indicates that point beyond which tariff reductions would threaten the existence of domestic industry.
Quick Asset
Those assets are quick assets which are liquid or nearly liquid in nature and easily be turned into cash.
Quoted Company
That company is called quoted company whose share prices are quoted on a stock exchange.
Reflation
It signifies general increase in the level of business activity in the economy. Reflation generally involves greater government expenditure and the easing of credit to encourage increased production.
Regressive Tax
It is a tax in which rate of taxation falls with an increase in income. In regressive taxation incidence falls more on people having lower incomes than that of those having higher incomes.
Repressed Inflation
It is a state in which aggregate demand is greater than the total supply of goods and services in an economy, but prices are prevented from rising to eliminate excess demand. The holding down of price is sometimes done by government as a means of suppressing inflation.
Reserve Asset Ratio
It is the ratio of a bank’s reserve assets to its eligible liabilities.
Revolving Credit
It is a bank credit that is renewed automatically until notice of cancellation is received. Revolving credits may be sanctioned for an unlimited amount in total but with a limit on
the amount that may be drawn at any one time or within a specified period, e.g., one month.
Seasonal Unemployment
It is that unemployment which is caused by seasonal variation in demand for labour by various industries, such as agriculture, construction and tourism. Seasonal unemployment
normally declines in spring as more outdoor work can be undertaken.
Security
Security refers to a share, bond or government stock that can be bought and sold, usually on the stock exchange or on a secondary market, and carries a right to some form of income, either in the form of a fixed rate of interest or dividends.
Shadow Price
It is an imputed value for a good based on the opportunity costs of the resources used to produce it such values are of particular significance in resolving problems of resource allocating with respect to the effect on welfare.
Share Capital
It is the amount of money raised by a company by issuing shares. The authorized share capital is the amount that a company is allowed to issue as laid down in its Articles of Association. The issued share capital is the amount actually issued i.e., the number of issued shares multiplied by their par value. Fully paid share capital is the amount raised by payment of the full par value of the issued shares.
Single Tax System
It is a system in which all tax revenues are raised from one form of taxation.
Socialism
The political doctrine that the means of production (machines, materials and output) should be owned by society and specifically either by the state, as in the case of nationalized industries or by the workers directly, as in the case of producer co-operatives.
Social Security
Provision by the state out of taxation of welfare assistance to those in need as a result of illness, unemployment, or old age compare national insurance refers to social security.
Soft Currency
A currency with limited convertibility into gold and other currencies, either because it is depreciating due to balance of payments difficulties or because controls have been placed on it to prevent the exchange rate falling.
Special Drawing Rights (SDRs)
It is a reserve asset (known as ‘Paper Gold’) created within the framework of the International Monetary Fund in an attempt to increase international liquidity, and now forming a part of countries official reserves along with gold, reserve positions in the IMF and convertible foreign currencies.
Special Tax (Unit Tax)
It is a tax imposed per unit of a commodity rather than on the value of the commodity compare ad-valorem.
Stabilization Policy
It is Government economic policy announced at reducing the cyclical and other fluctuations that take place in a market economy.
Stagflation
It is a state of the economy in which economic activity is slowing down, but wages and prices continue to rise. The term is a blend of the words stagnation and inflation.
Surplus Value
It is the difference between the amount paid to a factor and the revenue earned by selling the output it produced.
Tariff
It is a tax or a duty on imports, which can be levied either on physical units, e.g., per tonne (specific), or on value (ad-valorem). Tariffs may be imposed for a variety of reasons including; to raise government revenue, to protect domestic industry from subsidized or low-wage imports, to boost domestic employment, or to ease a deficit on the balance of payments.
Trade Gap
It signifies the size of the deficit (or surplus) in the balance of trade i.e., the difference in value between visible imports and exports.
Trade Union
It is an organisation of employees who join together to further their interests. Trade Unions negotiate on behalf of their members in collective bargaining with employers, and in the event of a dispute may put pressure on employers by withdrawing labour (i.e. strike) or by some less drastic form of action (i.e. go-slow, working to rule).
Transfer Payment
It is a payment made by public authority other than one made in exchange for goods or services produced. Transfer payments are not the part of National Income. Examples includes unemployment benefit and child benefits.
Vital Statistics
Vital statistics refers to those data which are associated with vital events of masses like birth, death, marriage divorce etc.
VAT (Value Added Tax)
VAT seeks to tax the value added at every stage of manufacturing and sale, with a provision of refunding the amount of VAT already paid at the earlier stages to avoid double taxation. In other words, the tax already paid can be claimed at the next stage of value addition.
Wealth Tax
Wealth tax is that tax which is imposed on the value of total assets but the wealth upto a certain limit is exempted from such tax.
Welfare State
It refers to a nation that provides to all at least the minimum standards in respect of education, health, housing, pensions and other social benefits.
Wholesale Price Index
Wholesale Price Index is that index which is calculated on the basis of wholesale prices. It is calculated in a similar way to the Retail Price Index.
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Wednesday, October 19, 2011
BUDGET RELATED TERMINOLOGY
Union Budget
Under Article 112 of the constitution, a statement of estimated receipts and expenditure, called the ‘Annual Financial Statement’, has to be placed before Parliament for each financial year.
This Statement is the main budget document. It is an estimate of the Government’s revenue and expenditure at the end of a fiscal year, which runs from April 1 to March 31.
A Union Budget is the most comprehensive report of the Government’s finances, in which revenues from all sources and outlays to all activities are consolidated. The budget also contains estimates of the Government’s accounts for the next fiscal, called budgeted
estimates.
Capital BudgetThe capital budget consists of capital receipts and payments. Capital receipts are Government loans raised from the public, Government borrowings from the Reserve Bank and treasury bills, divestment of equity holding in public sector enterprises, loans received from foreign Governments and bodies, securities against small savings, State provident funds, and special deposits.
Capital payments refer to capital expenditures on construction of capital projects and acquisition of assets like land, buildings machinery and equipment.
It also includes investments in shares, and loans and advances granted by the Central Government to State Governments, Government companies, corporations and other parties.
Revenue Budget
The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies.
The non-tax revenue sources include interest on loans, dividend on investments etc.
Revenue expenditure is the expenditure incurred on the day-to-day running of the Government and its various departments, and for services that it provides.
It also includes interest on its borrowings, subsidies and grants given to State Governments and other parties.
This expenditure does not result in the creation of assets. In case the difference between revenue receipts and revenue expenditure is negative, there is a revenue deficit.
It shows the shortfall of the Government’s current receipts over current expenditure. If the capital expenditure and capital receipts are taken into account too, there will be a gap between the receipts and expenditure in a year. This gap constitutes the overall budgetary deficit, and it is covered by issuing 91-day Treasury Bills, mostly held by the Reserve Bank.
Revenue surplus is the excess of revenue receipts over revenue expenditure.
Fiscal Deficit
This is the gap between the Government’s total spending and the sum of its revenue receipts and non-debt capital receipts.
It represents the total amount of borrowed funds required by the Government to completely meet its expenditure. The gap is bridged through additional borrowing from the Reserve Bank of India, issuing Government securities etc. Fiscal deficit is one of the major contributors to inflation.
Primary Deficit
The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government’s borrowings are going towards meeting expenses other than interest payments.
Finance Bill
The Government proposals for the levy of new taxes, alterations in the present tax structure, or continuance of the current tax structure are placed before the Parliament in this bill. The bill contains amendments proposed to direct and indirect taxes.
Direct and Indirect Taxes
Direct taxes are levied on the incomes of individuals and corporates. For example, income tax, corporate tax etc. Indirect taxes are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.
Some Other TermsCentral plan outlay : It refers to the allocation of monetary resources among the different sectors in the economy and the ministries of the Government.
Public account : The Government acts like a banker for transactions relating to provident funds, small savings collection etc.
The funds that the Government thus receives from its bank like operations are kept in the public account, from which the related disbursements are made.
These funds do not belong to the Government and have to be paid back to the persons and authorities who have deposited them.
Ad-valorem duties : These are the duties determined as a certain percentage of the price of products.
Balance of payments : Balance of payments is the difference between the demand for, and supply of, a country’s currency on the foreign exchange market.
Budget estimates : It is an estimate of fiscal and revenue deficits for the year. The term is associated with the estimates of the Centre’s spending during the financial year and the income received through taxes.
Capital receipt : Loans raised by the Centre from the market. Government borrowings from the Reserve Bank and other parties, sale of Treasury Bills, and loans received from foreign governments form a part of capital receipt.
Other items that also fall under this category include recovery of loans granted by the Centre to State Governments and proceeds from disinvestments of Government stake in public sector undertakings.
Consolidated fund : Under this, the Government pools all its funds together.
It includes all Government revenues, loans raised, and recoveries of loans granted.
All expenditure of the Government is incurred from the consolidated fund and no amount can be withdrawn from the fund without authorisation of the Parliament.
Contingency fund : This is a fund used for meeting emergencies where the Government cannot wait for an authorisation of the Parliament. The Government subsequently obtains Parliamentary approval for the expenditure. The amount spent from the contingency fund is returned to the fund later.
Monetary policy : This comprises actions taken by the central bank to regulate the level of money or liquidity in the economy, or change the interest rates.
Under Article 112 of the constitution, a statement of estimated receipts and expenditure, called the ‘Annual Financial Statement’, has to be placed before Parliament for each financial year.
This Statement is the main budget document. It is an estimate of the Government’s revenue and expenditure at the end of a fiscal year, which runs from April 1 to March 31.
A Union Budget is the most comprehensive report of the Government’s finances, in which revenues from all sources and outlays to all activities are consolidated. The budget also contains estimates of the Government’s accounts for the next fiscal, called budgeted
estimates.
Capital BudgetThe capital budget consists of capital receipts and payments. Capital receipts are Government loans raised from the public, Government borrowings from the Reserve Bank and treasury bills, divestment of equity holding in public sector enterprises, loans received from foreign Governments and bodies, securities against small savings, State provident funds, and special deposits.
Capital payments refer to capital expenditures on construction of capital projects and acquisition of assets like land, buildings machinery and equipment.
It also includes investments in shares, and loans and advances granted by the Central Government to State Governments, Government companies, corporations and other parties.
Revenue Budget
The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies.
The non-tax revenue sources include interest on loans, dividend on investments etc.
Revenue expenditure is the expenditure incurred on the day-to-day running of the Government and its various departments, and for services that it provides.
It also includes interest on its borrowings, subsidies and grants given to State Governments and other parties.
This expenditure does not result in the creation of assets. In case the difference between revenue receipts and revenue expenditure is negative, there is a revenue deficit.
It shows the shortfall of the Government’s current receipts over current expenditure. If the capital expenditure and capital receipts are taken into account too, there will be a gap between the receipts and expenditure in a year. This gap constitutes the overall budgetary deficit, and it is covered by issuing 91-day Treasury Bills, mostly held by the Reserve Bank.
Revenue surplus is the excess of revenue receipts over revenue expenditure.
Fiscal Deficit
This is the gap between the Government’s total spending and the sum of its revenue receipts and non-debt capital receipts.
It represents the total amount of borrowed funds required by the Government to completely meet its expenditure. The gap is bridged through additional borrowing from the Reserve Bank of India, issuing Government securities etc. Fiscal deficit is one of the major contributors to inflation.
Primary Deficit
The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government’s borrowings are going towards meeting expenses other than interest payments.
Finance Bill
The Government proposals for the levy of new taxes, alterations in the present tax structure, or continuance of the current tax structure are placed before the Parliament in this bill. The bill contains amendments proposed to direct and indirect taxes.
Direct and Indirect Taxes
Direct taxes are levied on the incomes of individuals and corporates. For example, income tax, corporate tax etc. Indirect taxes are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.
Some Other TermsCentral plan outlay : It refers to the allocation of monetary resources among the different sectors in the economy and the ministries of the Government.
Public account : The Government acts like a banker for transactions relating to provident funds, small savings collection etc.
The funds that the Government thus receives from its bank like operations are kept in the public account, from which the related disbursements are made.
These funds do not belong to the Government and have to be paid back to the persons and authorities who have deposited them.
Ad-valorem duties : These are the duties determined as a certain percentage of the price of products.
Balance of payments : Balance of payments is the difference between the demand for, and supply of, a country’s currency on the foreign exchange market.
Budget estimates : It is an estimate of fiscal and revenue deficits for the year. The term is associated with the estimates of the Centre’s spending during the financial year and the income received through taxes.
Capital receipt : Loans raised by the Centre from the market. Government borrowings from the Reserve Bank and other parties, sale of Treasury Bills, and loans received from foreign governments form a part of capital receipt.
Other items that also fall under this category include recovery of loans granted by the Centre to State Governments and proceeds from disinvestments of Government stake in public sector undertakings.
Consolidated fund : Under this, the Government pools all its funds together.
It includes all Government revenues, loans raised, and recoveries of loans granted.
All expenditure of the Government is incurred from the consolidated fund and no amount can be withdrawn from the fund without authorisation of the Parliament.
Contingency fund : This is a fund used for meeting emergencies where the Government cannot wait for an authorisation of the Parliament. The Government subsequently obtains Parliamentary approval for the expenditure. The amount spent from the contingency fund is returned to the fund later.
Monetary policy : This comprises actions taken by the central bank to regulate the level of money or liquidity in the economy, or change the interest rates.
FINANCIAL & BANKING AWARENESS MCQs
1. Competition (Amendment) Bill, 2007 has replaced—
(A) VAT
(B) MRTPC
(C) Securities Contracts (Regulation) Bill, 2005
(D) Electricity Act, 2003
2. A bill has been introduced in the Parliament to raise SBI authorised capital from Rs. 20 crore to—
(A) Rs. 50 crore
(B) Rs. 1000 crore
(C) Rs. 2000 crore
(D) Rs. 5000 crore
3. The total Foreign Direct Investment (FDI) during 2008-09 has been targeted at—
(A) $ 25 billion
(B) $ 35 billion
(C) $ 45 billion
(D) $ 50 billion
4. National Electricity Policy envisages elimination of power shortage by 2012 through addition of …… during 10th and 11th plan periods.
(A) 50000 MW
(B) 75000 MW
(C) 100000 MW
(D) 125000 MW
5. ‘Priyadarshini Project’ is related to—
(A) Empowerment of Rural women
(B) Survival of Girl Child
(C) Free Education to all girls
(D) None of the above
6. ‘Pratibha Kiran Yojana’ is a new scheme to promote higher education among girls introduced by—
(A) Karnataka
(B) Bihar
(C) Madhya Pradesh
(D) Uttar Pradesh
7. To which service, the government has notified Service Tax Refund Scheme for exporter ?
(A) Port services
(B) Railway service
(C) Road service
(D) All of these
8. ‘Laadli Laxmi Yojana’ has been launched by………government for supporting girls of all religion and caste upto their marriage.
(A) Rajasthan
(B) Madhya Pradesh
(C) Uttar Pradesh
(D) Gujarat
9. The Contract of Expressway Project in Uttar Pradesh has been awarded to—
(A) JP Associates
(B) JM Infra
(C) Jointly to (A) and (B)
(D) None of the above
10. 13th ASEAN Summit was held between November 18 to 22, 2007 in—
(A) Thailand
(B) Malaysia
(C) Singapore
(D) Philippines
11. ‘Innovation Lab’ has been launched by—
(A) Tata Consultancy Services
(B) Infosys Tech
(C) Reliance Industries
(D) Anil’s Reliance Communications
12. Dr. Ganesh Natrajan has been appointed Chairman (2008-09) for—
(A) CII
(B) NASSCOM
(C) FICCI
(D) SEBI
13. Which country was honoured at China International Travel Mart 2007 with Best Participating and Excellent Advertisement Awards ?
(A) Singapore
(B) Thailand
(C) India
(D) Nepal
14. APEC group leaders have decided to take up new membership issue after a few years and as a result India and other ten countries have to wait for APEC membership till—
(A) 2009
(B) 2010
(C) 2011
(D) 2012
15. Government has extended Mid Day Meal Scheme to cover the students upto class—
(A) 6th
(B) 7th
(C) 8th
(D) 10th
16. Videsh Sanchar Nigam Ltd. has been renamed as—
(A) Reliance Sanchar Nigam Ltd.
(B) Tata Sanchar Nigam Ltd.
(C) Tata Communication Ltd.
(D) Bharti Communication Ltd.
17. Government is going to merge Annapurna Scheme with—
(A) Mid Day Meal Scheme
(B) National Old Age Pension Scheme
(C) National Food for Work Programme
(D) Antyodaya Anna Yojana
18. For attaining 9% growth rate during 11th plan (2007-2012), investment level has been estimated to be—
(A) 34•8% of GDP
(B) 32•4% of GDP
(C) 30•9% of GDP
(D) 36•7% of GDP
19. Government adopted the new funding pattern (Centre State Share) for Sarva Shiksha Abhiyan as—
(A) 50 : 50
(B) 55 : 45
(C) 60 : 40
(D) 65 : 35
20. National Food Security Mission targets to increase the production of wheat, rice and pulses in next four years to—
(A) 10, 8 and 2 million tonne respectively
(B) 8, 10 and 2 million tonne respectively
(C) 8, 12 and 2 million tonne respectively
(D) 8, 10 and 4 million tonne respectively
21. The most densely populated country in South Asia is—
(A) Bangladesh
(B) India
(C) Maldives
(D) Sri Lanka
22. Revenue Deficit as a per cent of GDP in Budget 2009-10 has been estimated at—
(A) 1•0%
(B) 4•0%
(C) 4•4%
(D) 4•8%
23. Which country among the following gets the highest HDI ranking in Human Development Report 2007 ?
(A) Iceland
(B) USA
(C) United Kingdom
(D) Japan
24. ‘Aam Admi Bima Yojana’ is an insurance scheme for rural landless households introduced by—
(A) National Insurance Co.
(B) Life Insurance Co.
(C) UTI
(D) ICICI Life Prudential Co.
25. NOAPS has been renamed as Indira Gandhi Old Age Pension Scheme with its extended scope. Now this scheme will include all old age persons—
(A) Living below poverty line
(B) Above 60 years age
(C) Above 65 years age
(D) Both (A) and (C)
26. The Ex-officio Secretary of NDC is—
(A) Secretary of Finance Ministry
(B) General Secretary of Lok Sabha
(C) Secretary of Planning Commission
(D) Vice Chairman of Planning Commission
27. For charters and cargo services, what is the new FDI ceiling announced by the government ?
(A) 100%
(B) 74%
(C) 26%
(D) 49%
28. In National Mineral Policy (1993) which mineral was allowed for having investment from private sector—
(A) Coal
(B) Iron
(C) Gold
(D) Platinum
29. The share of road transport in total transport of the country is—
(A) 20%
(B) 40%
(C) 60%
(D) 80%
30. Minimum Support Price is decided by—
(A) ICAR
(B) State Government
(C) Ministry of Agriculture
(D) CACP
31. Which percentage of Central Taxes have been recommended by the 12th Finance Commission to be transferred to States ?
(A) 28·5%
(B) 29·5%
(C) 30·5%
(D) 31·5%
32. Which state possesses the maximum percentage of SC population ?
(A) U.P.
(B) M.P.
(C) Kerala
(D) Punjab
33. Government has decided to cover all districts of the country in National Rural Employment Guarantee Programme (NREGP)—
(A) Upto January 1, 2008
(B) Upto March 31, 2008
(C) w.e.f. April 1, 2008
(D) w.e.f. April 1, 2009
34. What is ‘NIKKEI’ ?
(A) Share Price Index of Tokyo Share Market
(B) Name of Japanese Central Bank
(C) Japanese name of Country’s Planning Commission
(D) Foreign Exchange Market of Japan
35. Which statement is correct for Indian Planning Commission ?
(A) It is not defined in Indian Constitution
(B) Members and Vice-Chairman of it do not have fixed working duration
(C) Members do not require any minimum education
(D) All of these
36. Which State of the following has not yet adopted VAT (Value Added Tax) ?
(A) Tamil Nadu
(B) Uttar Pradesh
(C) Gujarat
(D) None of the above
37. Service Tax revenue collection for 2008–09 (Budget estimates) was proposed at—
(A) Rs. 64,460 crore
(B) Rs. 52,603 crore
(C) Rs. 50,200 crore
(D) Rs. 74,460 crore
38. NABARD was established on the recommendation of—
(A) Public Account Committee
(B) Shivaraman Committee
(C) Narsimham Committee
(D) None of these
39. Sampurna Gramin Rojgar Yojana was launched on—
(A) 1st April, 2001
(B) 25th Sept., 2001
(C) 30th Sept., 2001
(D) No scheme of such title has yet launched
40. Which company is providing mobile service with name ‘Cell One’ to the consumers ?
(A) MTNL
(B) BSNL
(C) Reliance Infocom
(D) Bharti Tele
41. VAT is imposed—
(A) Directly on consumer
(B) On final stage of production
(C) On first stage of production
(D) On all stages between production and final sale
42. The newly appointed person as Chairman of CBDT is—
(A) S. Sridhar
(B) S. S. N. Moorti
(C) Rajiv Chandrashekhar
(D) Venugopal Dhoot
43. Kutir Jyoti scheme is associated with—
(A) Promoting cottage industry in villages
(B) Promoting employment among rural unemployed youth
(C) Providing electricity to rural families living below the poverty line
(D) All of these
44. Novelis has been acquired and merged with—
(A) Tata Steels
(B) SAIL
(C) HINDALCO
(D) Jindal Steels
45. OTCEI is—
(A) Atomic Submarine of China
(B) Economic Policy of USA
(C) An Indian Share Market
(D) A Defence Research Organisation
46. Foreign Trade Policy 2009-10 document fixes the export target for 2009-10 as—
(A) $ 140 billion
(B) $ 175 billion
(C) $ 150 billion
(D) $ 200 billion
47. Gross Budgetary Support (GBS) for 2008–09 as per document of 11th plan stands at Rs. 2,28,725 crore but in budget proposals for 2008–09 it was raised to—
(A) Rs. 2,23,386 crore
(B) Rs. 2,43,386 crore
(C) Rs. 2,63,386 crore
(D) Rs. 28,456 crore
48. The base year of Industrial Production Index is being shifted from 1993-94 to—
(A) 2004-05
(B) 1999
(C) 2000-01
(D) 1999-2000
49. In Interim Budget proposals for 2009–10, which of the following gives 22% contribution in revenue collection of union government ?
(A) Income Tax
(B) Excise
(C) Corporation Tax
(D) Non-tax Revenue
50. The base year of present Consumer Price Index (CPI) for Urban Non-Manual Employees (CPI—UNME) is—
(A) 1980-81
(B) 1981-82
(C) 1982-83
(D) 1984-85
51. CAPART is related with—
(A) Assisting and evaluating rural welfare programmes
(B) Computer hardware
(C) Consultant service of export promotion
(D) Controlling pollution in big industries
52. Note issuing deptt. of RBI should always possess the minimum gold stock of worth—
(A) Rs. 85 crore
(B) Rs. 115 crore
(C) Rs. 200 crore
(D) None of these
53. Which of the following does not grant any tax rebate ?
(A) National Saving Certificate
(B) Indira Vikas Patra
(C) National Saving Scheme
(D) Public Providend Fund
54. Ad hoc Treasury Bill System of meeting budget deficit in India was abolished on—
(A) 31 March, 1997
(B) 31 March, 1996
(C) 1 April, 1992
(D) 1 April, 1995
55. SEBI was established in—
(A) 1993
(B) 1992
(C) 1988
(D) 1990
56. The working of SEBI includes—
(A) To regulate the dealings of share market
(B) To check the foul dealings in share market
(C) To control the inside trading of shares
(D) All of these
57. The ‘Ad hoc Treasury Bill System’ of meeting budget deficit in India was replaced by ‘Ways and Means Advances System’ which has come into force on—
(A) March 31, 1997
(B) April 1, 1996
(C) April 1, 1997
(D) None of these
58. Fiscal deficit as a percentage of GDP was 4·0% in 2004–05 which increased in 2009–10 (Budget Estimates) to—
(A) 5·0%
(B) 5·1%
(C) 6·8%
(D) 6·0%
59. Which is the first Export Processing Zone declared as Free Trade Zone in India ?
(A) Kandla
(B) Noida
(C) Santacruz
(D) Falta
60. Which statement of the following is true for IMF ?
(A) It is not an agency of UNO
(B) It can grant loan to any country of the world
(C) It can grant loan to state Govt. of a country
(D) It grants loan only to member nations
61. TRAI has abolished ADC (Access Deficit Charge) on all types of calls w.e.f.—
(A) April 1, 2008
(B) April 30, 2008
(C) August 30, 2008
(D) October 30, 2008
62. Which of the following is public sector organisation ?
(1) FCI Food Corporation of India
(2) FCI Fertilizer Corporation of India
(3) Cotton Corporation of India
(4) Jute Corporation of India
(A) Only 1 and 2
(B) Only 2, 3
(C) Only 3, 4
(D) All of these
63. Which day has been declared as ‘Balika Diwas’ (Girl Day) by the Ministry of Woman and Children Development ?
(A) April 5, every year
(B) July 9, every year
(C) October 9, every year
(D) December 9, every year
64. For RIDF-XIV, allocation in Union Budget 2008-09 was—
(A) Rs. 16000 crore
(B) Rs. 12000 crore
(C) Rs. 10000 crore
(D) Rs. 14000 crore
65. The birth rate and death rate for the year 2006 have been estimated as—
(A) 26·2 and 8·1 per thousand respectively
(B) 24·8 and 8·0 per thousand respectively
(C) 23·8 and 7·6 per thousand respectively
(D) 23·5 and 7·5 per thousand respectively
66. Central Issue price of foodgrains under TPDS includes price for BPL and APL (below poverty line and above poverty line). What is the difference between the two ?
(A) Price for APL is double of BPL price
(B) Price for BPL is one-third of APL price
(C) Difference of Rs. 500 per Qt.
(D) Difference of Rs. 250 per Qt.
67. What growth target government has estimated for the domestic crude production for the 11th Plan (2007–12) ?
(A) 42%
(B) 33%
(C) 29%
(D) 26%
68. Rural women can avail the benefit of Mahila Samriddhi Yojana if they open their account in—
(A) Rural Post Offices
(B) Commercial Banks
(C) Rural Development Bank
(D) Any of the above
69. Agriculture sector registered 4·9% growth in 2007-08 and it is estimated for year 2008-09 at—
(A) Again 4·5%
(B) 4·3%
(C) 3·3%
(D) 1·6%
70. As per the third advanced estimates of Agricultural Production for the year 2008-09 released by the Ministry of Agriculture, total foodgrain’s production has been estimated at—
(A) 240·78 million tonne
(B) 230·78 million tonne
(C) 227·88 million tonne
(D) 229·85 million tonne
71. Mistry Committee in its final report recommends full capital account convertibility by—
(A) 2008 end
(B) 2009 end
(C) 2010 end
(D) 2011 end
72. Which committee recommended tax on Agriculture Holdings ?
(A) Bhootlingam Committee
(B) Wanchoo Committee
(C) Raj Committee
(D) None of these
73. The Present Service Tax rate is—
(A) 8%
(B) 15%
(C) 10%
(D) 12%
74. The cause of deflation is—
(A) Lack of goods and services as compared to money supply
(B) Lack of imports as compared to exports
(C) Lack of money supply as compared to supply of goods and services
(D) None of these
75. Which of the following is a better measure of economic development ?
(A) Employment
(B) Size of exports
(C) Rural consumption
(D) National Income
76. Which bank in India performs duties of Central Bank ?
(A) Central Bank of India
(B) State Bank of India
(C) Reserve Bank of India
(D) Above (A) and (B)
77. Out of one Rupee expenditure, how much paise have been allotted for subsidy in 2009-10 interim budget proposals ?
(A) 12 paise
(B) 10 paise
(C) 9 paise
(D) 7 paise
78. ‘India Brand Equity Fund’ was established in—
(A) 1996
(B) 1997
(C) 1995
(D) 1992
79. Mixed Economy means—
(A) Co-existence of small and large industries
(B) Promoting both Agriculture and Industries in the economy
(C) Co-existence of public and private sectors
(D) Co-existence of rich and poor
80. Ministry of HRD has announced to hike FDI limit in Education to—
(A) 65%
(B) 70%
(C) 75%
(D) 100%
81. ‘Pure Banking, Nothing Else’ is a slogan raised by—
(A) ICICI Bank
(B) HDFC Bank
(C) SBI
(D) UTI Bank
82. In the end of March 2008, External debt to GDP ratio in India stood at—
(A) 18·8%
(B) 17·4%
(C) 17·8%
(D) 15·8%
83. Indian State having the lowest Infant Mortality Rate is—
(A) Maharashtra
(B) Goa
(C) Gujarat
(D) Kerala
84. ‘Smart Money’ is a term used for—
(A) Internet Banking
(B) Credit Card
(C) Cash with Bank
(D) Cash with Public
85. Which of the following has the maximum share in GSM Mobile Phone Service Market ?
(A) Vodafone (earlier Hutch)
(B) Airtel
(C) BSNL
(D) Reliance
86. The main objective of TRYSEM was—
(A) To train rural youth for self employment
(B) To train urban youth for self employment
(C) Both of the above
(D) None of these
87. The establishment of IORARC (Indian Ocean Rim Association for Regional Cooperation) was officially declared on—
(A) March 5, 1996
(B) March 5, 1997
(C) April 1, 1997
(D) August 15, 1947
88. Inside Trading is related to—
(A) Share Market
(B) Horse racing
(C) Taxation
(D) Public Expenditure
89. The largest source of National Income in India is—
(A) Service Sector
(B) Agriculture
(C) Industrial Sector
(D) Trade Sector
90. ‘Public Sector’ means—
(A) Government ownership on commerce and trade
(B) Capitalist ownership on commerce and trade
(C) Private ownership on trade
(D) None of these
91. NABARD is—
(A) A bank
(B) A board
(C) A block
(D) A department
92. Indian Green Revolution is the most successful in—
(A) Wheat and Potato
(B) Jwar and Oil Seeds
(C) Wheat and Rice
(D) Tea and Coffee
93. The period of 10th plan in India was—
(A) 2000-2005
(B) 2001-2006
(C) 2002-2007
(D) 2003-2008
94. Economic Planning is in—
(A) Union list
(B) State list
(C) Concurrent list
(D) Not any specified list
95. Presently (from April 29, 2003) bank rate in India is—
(A) 7·0%
(B) 6·75%
(C) 6.25%
(D) 6·0%
96. Gross domestic savings as a proportion of GDP has been improving. What is the average percentage of gross domestic savings proposed during the 11th plan ?
(A) 26·4%
(B) 31·9%
(C) 34·8%
(D) 35·2%
97. 12th Finance Commission has recommended to merge and determine one single interest rate on various outstanding central loans to states having different interest rates. What is this recommended interest rate ?
(A) 7·0%
(B) 7·5%
(C) 8·0%
(D) 8·5%
98. MRTP is related to—
(A) Monopoly and trade restrictions
(B) Inflation control
(C) Transport control
(D) Foreign Exchange Regulations
99. Interest Rate Policy is a part of—
(A) Fiscal Policy
(B) Industrial Policy
(C) Monetary Policy
(D) None of these
100. The basis of determining dearness allowance to employees in India is—
(A) National Income
(B) Consumer Price Index
(C) Standard of Living
(D) Per Capita Income
Answers1. (B) 2. (D) 3. (B) 4. (C) 5. (A) 6. (C) 7. (D) 8. (B) 9. (A) 10. (C)
11. (A) 12. (B) 13. (C) 14. (B) 15. (C) 16. (C) 17. (B) 18. (D) 19. (D) 20. (B)
21. (C) 22. (D) 23. (A) 24. (B) 25. (D) 26. (C) 27. (B) 28. (A) 29. (D) 30. (D) 31. (C) 32. (D)
33. (C) 34. (A) 35. (D) 36. (D) 37. (A) 38. (B) 39. (B) 40. (B) 41. (D) 42. (B) 43. (C) 44. (C) 45. (C)
46. (D) 47. (B) 48. (D) 49. (C) 50. (D) 51. (A) 52. (B) 53. (B) 54. (A) 55. (C) 56. (D) 57. (C) 58. (C)
59. (C) 60. (D) 61. (D) 62. (D) 63. (D) 64. (D) 65. (D) 66. (A) 67. (D) 68. (A) 69. (D) 70. (D)
71. (A) 72. (D) 73. (D) 74. (C) 75. (D) 76. (C) 77. (C) 78. (A) 79. (C) 80. (D) 81. (C) 82. (A) 83. (D) 84. (B) 85. (B) 86. (A) 87. (B) 88. (A) 89. (A) 90. (A) 91. (A) 92. (C) 93. (C) 94. (C) 95. (D)
96. (C) 97. (B) 98. (A) 99. (C) 100. (B)
(A) VAT
(B) MRTPC
(C) Securities Contracts (Regulation) Bill, 2005
(D) Electricity Act, 2003
2. A bill has been introduced in the Parliament to raise SBI authorised capital from Rs. 20 crore to—
(A) Rs. 50 crore
(B) Rs. 1000 crore
(C) Rs. 2000 crore
(D) Rs. 5000 crore
3. The total Foreign Direct Investment (FDI) during 2008-09 has been targeted at—
(A) $ 25 billion
(B) $ 35 billion
(C) $ 45 billion
(D) $ 50 billion
4. National Electricity Policy envisages elimination of power shortage by 2012 through addition of …… during 10th and 11th plan periods.
(A) 50000 MW
(B) 75000 MW
(C) 100000 MW
(D) 125000 MW
5. ‘Priyadarshini Project’ is related to—
(A) Empowerment of Rural women
(B) Survival of Girl Child
(C) Free Education to all girls
(D) None of the above
6. ‘Pratibha Kiran Yojana’ is a new scheme to promote higher education among girls introduced by—
(A) Karnataka
(B) Bihar
(C) Madhya Pradesh
(D) Uttar Pradesh
7. To which service, the government has notified Service Tax Refund Scheme for exporter ?
(A) Port services
(B) Railway service
(C) Road service
(D) All of these
8. ‘Laadli Laxmi Yojana’ has been launched by………government for supporting girls of all religion and caste upto their marriage.
(A) Rajasthan
(B) Madhya Pradesh
(C) Uttar Pradesh
(D) Gujarat
9. The Contract of Expressway Project in Uttar Pradesh has been awarded to—
(A) JP Associates
(B) JM Infra
(C) Jointly to (A) and (B)
(D) None of the above
10. 13th ASEAN Summit was held between November 18 to 22, 2007 in—
(A) Thailand
(B) Malaysia
(C) Singapore
(D) Philippines
11. ‘Innovation Lab’ has been launched by—
(A) Tata Consultancy Services
(B) Infosys Tech
(C) Reliance Industries
(D) Anil’s Reliance Communications
12. Dr. Ganesh Natrajan has been appointed Chairman (2008-09) for—
(A) CII
(B) NASSCOM
(C) FICCI
(D) SEBI
13. Which country was honoured at China International Travel Mart 2007 with Best Participating and Excellent Advertisement Awards ?
(A) Singapore
(B) Thailand
(C) India
(D) Nepal
14. APEC group leaders have decided to take up new membership issue after a few years and as a result India and other ten countries have to wait for APEC membership till—
(A) 2009
(B) 2010
(C) 2011
(D) 2012
15. Government has extended Mid Day Meal Scheme to cover the students upto class—
(A) 6th
(B) 7th
(C) 8th
(D) 10th
16. Videsh Sanchar Nigam Ltd. has been renamed as—
(A) Reliance Sanchar Nigam Ltd.
(B) Tata Sanchar Nigam Ltd.
(C) Tata Communication Ltd.
(D) Bharti Communication Ltd.
17. Government is going to merge Annapurna Scheme with—
(A) Mid Day Meal Scheme
(B) National Old Age Pension Scheme
(C) National Food for Work Programme
(D) Antyodaya Anna Yojana
18. For attaining 9% growth rate during 11th plan (2007-2012), investment level has been estimated to be—
(A) 34•8% of GDP
(B) 32•4% of GDP
(C) 30•9% of GDP
(D) 36•7% of GDP
19. Government adopted the new funding pattern (Centre State Share) for Sarva Shiksha Abhiyan as—
(A) 50 : 50
(B) 55 : 45
(C) 60 : 40
(D) 65 : 35
20. National Food Security Mission targets to increase the production of wheat, rice and pulses in next four years to—
(A) 10, 8 and 2 million tonne respectively
(B) 8, 10 and 2 million tonne respectively
(C) 8, 12 and 2 million tonne respectively
(D) 8, 10 and 4 million tonne respectively
21. The most densely populated country in South Asia is—
(A) Bangladesh
(B) India
(C) Maldives
(D) Sri Lanka
22. Revenue Deficit as a per cent of GDP in Budget 2009-10 has been estimated at—
(A) 1•0%
(B) 4•0%
(C) 4•4%
(D) 4•8%
23. Which country among the following gets the highest HDI ranking in Human Development Report 2007 ?
(A) Iceland
(B) USA
(C) United Kingdom
(D) Japan
24. ‘Aam Admi Bima Yojana’ is an insurance scheme for rural landless households introduced by—
(A) National Insurance Co.
(B) Life Insurance Co.
(C) UTI
(D) ICICI Life Prudential Co.
25. NOAPS has been renamed as Indira Gandhi Old Age Pension Scheme with its extended scope. Now this scheme will include all old age persons—
(A) Living below poverty line
(B) Above 60 years age
(C) Above 65 years age
(D) Both (A) and (C)
26. The Ex-officio Secretary of NDC is—
(A) Secretary of Finance Ministry
(B) General Secretary of Lok Sabha
(C) Secretary of Planning Commission
(D) Vice Chairman of Planning Commission
27. For charters and cargo services, what is the new FDI ceiling announced by the government ?
(A) 100%
(B) 74%
(C) 26%
(D) 49%
28. In National Mineral Policy (1993) which mineral was allowed for having investment from private sector—
(A) Coal
(B) Iron
(C) Gold
(D) Platinum
29. The share of road transport in total transport of the country is—
(A) 20%
(B) 40%
(C) 60%
(D) 80%
30. Minimum Support Price is decided by—
(A) ICAR
(B) State Government
(C) Ministry of Agriculture
(D) CACP
31. Which percentage of Central Taxes have been recommended by the 12th Finance Commission to be transferred to States ?
(A) 28·5%
(B) 29·5%
(C) 30·5%
(D) 31·5%
32. Which state possesses the maximum percentage of SC population ?
(A) U.P.
(B) M.P.
(C) Kerala
(D) Punjab
33. Government has decided to cover all districts of the country in National Rural Employment Guarantee Programme (NREGP)—
(A) Upto January 1, 2008
(B) Upto March 31, 2008
(C) w.e.f. April 1, 2008
(D) w.e.f. April 1, 2009
34. What is ‘NIKKEI’ ?
(A) Share Price Index of Tokyo Share Market
(B) Name of Japanese Central Bank
(C) Japanese name of Country’s Planning Commission
(D) Foreign Exchange Market of Japan
35. Which statement is correct for Indian Planning Commission ?
(A) It is not defined in Indian Constitution
(B) Members and Vice-Chairman of it do not have fixed working duration
(C) Members do not require any minimum education
(D) All of these
36. Which State of the following has not yet adopted VAT (Value Added Tax) ?
(A) Tamil Nadu
(B) Uttar Pradesh
(C) Gujarat
(D) None of the above
37. Service Tax revenue collection for 2008–09 (Budget estimates) was proposed at—
(A) Rs. 64,460 crore
(B) Rs. 52,603 crore
(C) Rs. 50,200 crore
(D) Rs. 74,460 crore
38. NABARD was established on the recommendation of—
(A) Public Account Committee
(B) Shivaraman Committee
(C) Narsimham Committee
(D) None of these
39. Sampurna Gramin Rojgar Yojana was launched on—
(A) 1st April, 2001
(B) 25th Sept., 2001
(C) 30th Sept., 2001
(D) No scheme of such title has yet launched
40. Which company is providing mobile service with name ‘Cell One’ to the consumers ?
(A) MTNL
(B) BSNL
(C) Reliance Infocom
(D) Bharti Tele
41. VAT is imposed—
(A) Directly on consumer
(B) On final stage of production
(C) On first stage of production
(D) On all stages between production and final sale
42. The newly appointed person as Chairman of CBDT is—
(A) S. Sridhar
(B) S. S. N. Moorti
(C) Rajiv Chandrashekhar
(D) Venugopal Dhoot
43. Kutir Jyoti scheme is associated with—
(A) Promoting cottage industry in villages
(B) Promoting employment among rural unemployed youth
(C) Providing electricity to rural families living below the poverty line
(D) All of these
44. Novelis has been acquired and merged with—
(A) Tata Steels
(B) SAIL
(C) HINDALCO
(D) Jindal Steels
45. OTCEI is—
(A) Atomic Submarine of China
(B) Economic Policy of USA
(C) An Indian Share Market
(D) A Defence Research Organisation
46. Foreign Trade Policy 2009-10 document fixes the export target for 2009-10 as—
(A) $ 140 billion
(B) $ 175 billion
(C) $ 150 billion
(D) $ 200 billion
47. Gross Budgetary Support (GBS) for 2008–09 as per document of 11th plan stands at Rs. 2,28,725 crore but in budget proposals for 2008–09 it was raised to—
(A) Rs. 2,23,386 crore
(B) Rs. 2,43,386 crore
(C) Rs. 2,63,386 crore
(D) Rs. 28,456 crore
48. The base year of Industrial Production Index is being shifted from 1993-94 to—
(A) 2004-05
(B) 1999
(C) 2000-01
(D) 1999-2000
49. In Interim Budget proposals for 2009–10, which of the following gives 22% contribution in revenue collection of union government ?
(A) Income Tax
(B) Excise
(C) Corporation Tax
(D) Non-tax Revenue
50. The base year of present Consumer Price Index (CPI) for Urban Non-Manual Employees (CPI—UNME) is—
(A) 1980-81
(B) 1981-82
(C) 1982-83
(D) 1984-85
51. CAPART is related with—
(A) Assisting and evaluating rural welfare programmes
(B) Computer hardware
(C) Consultant service of export promotion
(D) Controlling pollution in big industries
52. Note issuing deptt. of RBI should always possess the minimum gold stock of worth—
(A) Rs. 85 crore
(B) Rs. 115 crore
(C) Rs. 200 crore
(D) None of these
53. Which of the following does not grant any tax rebate ?
(A) National Saving Certificate
(B) Indira Vikas Patra
(C) National Saving Scheme
(D) Public Providend Fund
54. Ad hoc Treasury Bill System of meeting budget deficit in India was abolished on—
(A) 31 March, 1997
(B) 31 March, 1996
(C) 1 April, 1992
(D) 1 April, 1995
55. SEBI was established in—
(A) 1993
(B) 1992
(C) 1988
(D) 1990
56. The working of SEBI includes—
(A) To regulate the dealings of share market
(B) To check the foul dealings in share market
(C) To control the inside trading of shares
(D) All of these
57. The ‘Ad hoc Treasury Bill System’ of meeting budget deficit in India was replaced by ‘Ways and Means Advances System’ which has come into force on—
(A) March 31, 1997
(B) April 1, 1996
(C) April 1, 1997
(D) None of these
58. Fiscal deficit as a percentage of GDP was 4·0% in 2004–05 which increased in 2009–10 (Budget Estimates) to—
(A) 5·0%
(B) 5·1%
(C) 6·8%
(D) 6·0%
59. Which is the first Export Processing Zone declared as Free Trade Zone in India ?
(A) Kandla
(B) Noida
(C) Santacruz
(D) Falta
60. Which statement of the following is true for IMF ?
(A) It is not an agency of UNO
(B) It can grant loan to any country of the world
(C) It can grant loan to state Govt. of a country
(D) It grants loan only to member nations
61. TRAI has abolished ADC (Access Deficit Charge) on all types of calls w.e.f.—
(A) April 1, 2008
(B) April 30, 2008
(C) August 30, 2008
(D) October 30, 2008
62. Which of the following is public sector organisation ?
(1) FCI Food Corporation of India
(2) FCI Fertilizer Corporation of India
(3) Cotton Corporation of India
(4) Jute Corporation of India
(A) Only 1 and 2
(B) Only 2, 3
(C) Only 3, 4
(D) All of these
63. Which day has been declared as ‘Balika Diwas’ (Girl Day) by the Ministry of Woman and Children Development ?
(A) April 5, every year
(B) July 9, every year
(C) October 9, every year
(D) December 9, every year
64. For RIDF-XIV, allocation in Union Budget 2008-09 was—
(A) Rs. 16000 crore
(B) Rs. 12000 crore
(C) Rs. 10000 crore
(D) Rs. 14000 crore
65. The birth rate and death rate for the year 2006 have been estimated as—
(A) 26·2 and 8·1 per thousand respectively
(B) 24·8 and 8·0 per thousand respectively
(C) 23·8 and 7·6 per thousand respectively
(D) 23·5 and 7·5 per thousand respectively
66. Central Issue price of foodgrains under TPDS includes price for BPL and APL (below poverty line and above poverty line). What is the difference between the two ?
(A) Price for APL is double of BPL price
(B) Price for BPL is one-third of APL price
(C) Difference of Rs. 500 per Qt.
(D) Difference of Rs. 250 per Qt.
67. What growth target government has estimated for the domestic crude production for the 11th Plan (2007–12) ?
(A) 42%
(B) 33%
(C) 29%
(D) 26%
68. Rural women can avail the benefit of Mahila Samriddhi Yojana if they open their account in—
(A) Rural Post Offices
(B) Commercial Banks
(C) Rural Development Bank
(D) Any of the above
69. Agriculture sector registered 4·9% growth in 2007-08 and it is estimated for year 2008-09 at—
(A) Again 4·5%
(B) 4·3%
(C) 3·3%
(D) 1·6%
70. As per the third advanced estimates of Agricultural Production for the year 2008-09 released by the Ministry of Agriculture, total foodgrain’s production has been estimated at—
(A) 240·78 million tonne
(B) 230·78 million tonne
(C) 227·88 million tonne
(D) 229·85 million tonne
71. Mistry Committee in its final report recommends full capital account convertibility by—
(A) 2008 end
(B) 2009 end
(C) 2010 end
(D) 2011 end
72. Which committee recommended tax on Agriculture Holdings ?
(A) Bhootlingam Committee
(B) Wanchoo Committee
(C) Raj Committee
(D) None of these
73. The Present Service Tax rate is—
(A) 8%
(B) 15%
(C) 10%
(D) 12%
74. The cause of deflation is—
(A) Lack of goods and services as compared to money supply
(B) Lack of imports as compared to exports
(C) Lack of money supply as compared to supply of goods and services
(D) None of these
75. Which of the following is a better measure of economic development ?
(A) Employment
(B) Size of exports
(C) Rural consumption
(D) National Income
76. Which bank in India performs duties of Central Bank ?
(A) Central Bank of India
(B) State Bank of India
(C) Reserve Bank of India
(D) Above (A) and (B)
77. Out of one Rupee expenditure, how much paise have been allotted for subsidy in 2009-10 interim budget proposals ?
(A) 12 paise
(B) 10 paise
(C) 9 paise
(D) 7 paise
78. ‘India Brand Equity Fund’ was established in—
(A) 1996
(B) 1997
(C) 1995
(D) 1992
79. Mixed Economy means—
(A) Co-existence of small and large industries
(B) Promoting both Agriculture and Industries in the economy
(C) Co-existence of public and private sectors
(D) Co-existence of rich and poor
80. Ministry of HRD has announced to hike FDI limit in Education to—
(A) 65%
(B) 70%
(C) 75%
(D) 100%
81. ‘Pure Banking, Nothing Else’ is a slogan raised by—
(A) ICICI Bank
(B) HDFC Bank
(C) SBI
(D) UTI Bank
82. In the end of March 2008, External debt to GDP ratio in India stood at—
(A) 18·8%
(B) 17·4%
(C) 17·8%
(D) 15·8%
83. Indian State having the lowest Infant Mortality Rate is—
(A) Maharashtra
(B) Goa
(C) Gujarat
(D) Kerala
84. ‘Smart Money’ is a term used for—
(A) Internet Banking
(B) Credit Card
(C) Cash with Bank
(D) Cash with Public
85. Which of the following has the maximum share in GSM Mobile Phone Service Market ?
(A) Vodafone (earlier Hutch)
(B) Airtel
(C) BSNL
(D) Reliance
86. The main objective of TRYSEM was—
(A) To train rural youth for self employment
(B) To train urban youth for self employment
(C) Both of the above
(D) None of these
87. The establishment of IORARC (Indian Ocean Rim Association for Regional Cooperation) was officially declared on—
(A) March 5, 1996
(B) March 5, 1997
(C) April 1, 1997
(D) August 15, 1947
88. Inside Trading is related to—
(A) Share Market
(B) Horse racing
(C) Taxation
(D) Public Expenditure
89. The largest source of National Income in India is—
(A) Service Sector
(B) Agriculture
(C) Industrial Sector
(D) Trade Sector
90. ‘Public Sector’ means—
(A) Government ownership on commerce and trade
(B) Capitalist ownership on commerce and trade
(C) Private ownership on trade
(D) None of these
91. NABARD is—
(A) A bank
(B) A board
(C) A block
(D) A department
92. Indian Green Revolution is the most successful in—
(A) Wheat and Potato
(B) Jwar and Oil Seeds
(C) Wheat and Rice
(D) Tea and Coffee
93. The period of 10th plan in India was—
(A) 2000-2005
(B) 2001-2006
(C) 2002-2007
(D) 2003-2008
94. Economic Planning is in—
(A) Union list
(B) State list
(C) Concurrent list
(D) Not any specified list
95. Presently (from April 29, 2003) bank rate in India is—
(A) 7·0%
(B) 6·75%
(C) 6.25%
(D) 6·0%
96. Gross domestic savings as a proportion of GDP has been improving. What is the average percentage of gross domestic savings proposed during the 11th plan ?
(A) 26·4%
(B) 31·9%
(C) 34·8%
(D) 35·2%
97. 12th Finance Commission has recommended to merge and determine one single interest rate on various outstanding central loans to states having different interest rates. What is this recommended interest rate ?
(A) 7·0%
(B) 7·5%
(C) 8·0%
(D) 8·5%
98. MRTP is related to—
(A) Monopoly and trade restrictions
(B) Inflation control
(C) Transport control
(D) Foreign Exchange Regulations
99. Interest Rate Policy is a part of—
(A) Fiscal Policy
(B) Industrial Policy
(C) Monetary Policy
(D) None of these
100. The basis of determining dearness allowance to employees in India is—
(A) National Income
(B) Consumer Price Index
(C) Standard of Living
(D) Per Capita Income
Answers1. (B) 2. (D) 3. (B) 4. (C) 5. (A) 6. (C) 7. (D) 8. (B) 9. (A) 10. (C)
11. (A) 12. (B) 13. (C) 14. (B) 15. (C) 16. (C) 17. (B) 18. (D) 19. (D) 20. (B)
21. (C) 22. (D) 23. (A) 24. (B) 25. (D) 26. (C) 27. (B) 28. (A) 29. (D) 30. (D) 31. (C) 32. (D)
33. (C) 34. (A) 35. (D) 36. (D) 37. (A) 38. (B) 39. (B) 40. (B) 41. (D) 42. (B) 43. (C) 44. (C) 45. (C)
46. (D) 47. (B) 48. (D) 49. (C) 50. (D) 51. (A) 52. (B) 53. (B) 54. (A) 55. (C) 56. (D) 57. (C) 58. (C)
59. (C) 60. (D) 61. (D) 62. (D) 63. (D) 64. (D) 65. (D) 66. (A) 67. (D) 68. (A) 69. (D) 70. (D)
71. (A) 72. (D) 73. (D) 74. (C) 75. (D) 76. (C) 77. (C) 78. (A) 79. (C) 80. (D) 81. (C) 82. (A) 83. (D) 84. (B) 85. (B) 86. (A) 87. (B) 88. (A) 89. (A) 90. (A) 91. (A) 92. (C) 93. (C) 94. (C) 95. (D)
96. (C) 97. (B) 98. (A) 99. (C) 100. (B)
Wednesday, October 12, 2011
IBPS CLERKS EXAM COMPUTER KNOWLEDGE QUESTIONS
1. All of the following are examples of real security and privacy risks EXCEPT:
A. hackers.
B. spam.
C. viruses.
D. identity theft.
Answer: B
A. hackers.
B. spam.
C. viruses.
D. identity theft.
Answer: B
2. A process known as ____________ is used by large retailers to study trends.
A. data mining
B. data selection
C. POS
D. data conversion
Answer: A
3. ____________terminals (formerly known as cash registers) are often connected to complex inventory and sales computer systems.
A. Data
B. Point-of-sale (POS)
C. Sales
D. Query
Answer: B
4. A(n) ____________ system is a small, wireless handheld computer that scans an item’s tag and pulls up the current price (and any special offers) as you shop.
A. PSS
B. POS
C. inventory
D. data mining
Answer: A
5. The ability to recover and read deleted or damaged files from a criminal’s computer is an example of a law enforcement specialty called:
A. robotics.
B. simulation.
C. computer forensics.
D. animation.
Answer: C
6. Which of the following is NOT one of the four major data processing functions of a computer?
A. gathering data
B. processing data into information
C. analyzing the data or information
D. storing the data or information
Answer: C
7. ____________ tags, when placed on an animal, can be used to record and track in a database all of the animal’s movements.
A. POS
B. RFID
C. PPS
D. GPS
Answer: B
8. Surgeons can perform delicate operations by manipulating devices through computers instead of manually. This technology is known as:
A. robotics.
B. computer forensics.
C. simulation.
D. forecasting.
Answer: A
9. Technology no longer protected by copyright, available to everyone, is considered to be:
A. proprietary.
B. open.
C. experimental.
D. in the public domain.
Answer: A
10. ____________ is the study of molecules and structures whose size ranges from 1 to 100 nanometers.
A. Nanoscience
B. Microelectrodes
C. Computer forensics
D. Artificial intelligence
Answer: A
11. ____________ is the science that attempts to produce machines that display the same type of intelligence that humans do.
A. Nanoscience
B. Nanotechnology
C. Simulation
D. Artificial intelligence (AI)
Answer: D
12. ____________ is data that has been organized or presented in a meaningful fashion.
A. A process
B. Software
C. Storage
D. Information
Answer: D
13. The name for the way that computers manipulate data into information is called:
A. programming.
B. processing.
C. storing.
D. organizing.
Answer: B
14. Computers gather data, which means that they allow users to ____________ data.
A. present
B. input
C. output
D. store
Answer: B
15. After a picture has been taken with a digital camera and processed appropriately, the actual print of the picture is considered:
A. data.
B. output.
C. input.
D. the process.
Answer: B
16. Computers use the ____________ language to process data.
A. processing
B. kilobyte
C. binary
D. representational
Answer: C
17. Computers process data into information by working exclusively with:
A. multimedia.
B. words.
C. characters.
D. numbers.
Answer: D
18. In the binary language each letter of the alphabet, each number and each special character is made up of a unique combination of:
A. eight bytes.
B. eight kilobytes.
C. eight characters.
D. eight bits.
Answer: D
19. The term bit is short for:
A. megabyte.
B. binary language.
C. binary digit.
D. binary number.
Answer: C
20. A string of eight 0s and 1s is called a:
A. megabyte.
B. byte.
C. kilobyte.
D. gigabyte.
Answer: B
21. A ____________ is approximately one billion bytes.
A. kilobyte
B. bit
C. gigabyte
D. megabyte
Answer: C
22. A ____________ is approximately a million bytes.
A. gigabyte
B. kilobyte
C. megabyte
D. terabyte
Answer: C
23. ____________ is any part of the computer that you can physically touch.
A. Hardware
B. A device
C. A peripheral
D. An application
Answer: A
24. The components that process data are located in the:
A. input devices.
B. output devices.
C. system unit.
D. storage component.
Answer: C
25. All of the following are examples of input devices EXCEPT a:
A. scanner.
B. mouse.
C. keyboard.
D. printer.
Answer: D
26. Which of the following is an example of an input device?
A. scanner
B. speaker
C. CD
D. printer
Answer: A
27. All of the following are examples of storage devices EXCEPT:
A. hard disk drives.
B. printers.
C. floppy disk drives.
D. CD drives.
Answer: B
28. The ____________, also called the “brains†of the computer, is responsible for processing data.
A. motherboard
B. memory
C. RAM
D. central processing unit (CPU)
Answer: D
29. The CPU and memory are located on the:
A. expansion board.
B. motherboard.
C. storage device.
D. output device.
Answer: B
30. Word processing, spreadsheet, and photo-editing are examples of:
A. application software.
B. system software.
C. operating system software.
D. platform software.
Answer: A
31. ____________ is a set of computer programs used on a computer to help perform tasks.
A. An instruction
B. Software
C. Memory
D. A processor
Answer: B
32. System software is the set of programs that enables your computers hardware devices and ____________ software to work together.
A. management
B. processing
C. utility
D. application
Answer: D
33. The PC (personal computer) and the Apple Macintosh are examples of two different:
A. platforms.
B. applications.
C. programs.
D. storage devices.
Answer: A
34. Apple Macintoshes (Macs) and PCs use different ____________ to process data and different operating systems.
A. languages
B. methods
C. CPUs
D. storage devices
Answer: C
35. Servers are computers that provide resources to other computers connected to a:
A. network.
B. mainframe.
C. supercomputer.
D. client.
Answer: A
36. Smaller and less expensive PC-based servers are replacing ____________ in many businesses.
A. supercomputers
B. clients
C. laptops
D. mainframes
Answer: D
37. ____________ are specially designed computers that perform complex calculations extremely rapidly.
A. Servers
B. Supercomputers
C. Laptops
D. Mainframes
Answer: B
38. DSL is an example of a(n) ____________ connection.
A. network
B. wireless
C. slow
D. broadband
Answer: D
39. The difference between people with access to computers and the Internet and those without this access is known as the:
A. digital divide.
B. Internet divide.
C. Web divide.
D. broadband divide.
Answer: A
40. ____________ is the science revolving around the use of nano structures to build devices on an extremely small scale.
A. Nanotechnology
B. Micro-technology
C. Computer forensics
D. Artificial intelligence
Answer: A
41. Which of the following is the correct order of the four major functions of a computer?
A. Process à Output à Input à Storage
B. Input à Outputà Process à Storage
C. Process à Storage à Input à Output
D. Input à Process à Output à Storage
Answer: D
42. ____________ bits equal one byte.
A. Eight
B. Two
C. One thousand
D. One million
Answer: A
43. The binary language consists of ____________ digit(s).
A. 8
B. 2
C. 1,000
D. 1
Answer: B
44. A byte can hold one ____________ of data.
A. bit
B. binary digit
C. character
D. kilobyte
Answer: C
45. ____________ controls the way in which the computer system functions and provides a means by which users can interact with the computer.
A. The platform
B. The operating system
C. Application software
D. The motherboard
Answer: B
46. The operating system is the most common type of ____________ software.
A. communication
B. application
C. system
D. word-processing software
Answer: C
47. ____________ are specially designed computer chips that reside inside other devices, such as your car or your electronic thermostat.
A. Servers
B. Embedded computers
C. Robotic computers
D. Mainframes
Answer: B
48. The steps and tasks needed to process data, such as responses to questions or clicking an icon, are called:
A. instructions.
B. the operating system.
C. application software.
D. the system unit.
Answer: A
49. The two broad categories of software are:
A. word processing and spreadsheet.
B. transaction and application.
C. Windows and Mac OS.
D. system and application.
Answer: D
50. The metal or plastic case that holds all the physical parts of the computer is the:
A. system unit.
B. CPU.
C. mainframe.
D. platform.
Answer: A
IBPS CLERKS EXAM COMPUTER KNOWLEDGE PRACTICE QUESTIONS
1. A word in a web page that, when clicked, opens another document is called ?
- 01. URL
- 02. anchor
- 03. hyperlink
- 04. None of these
2. Tunk e-mail is also called ?
- 01. Spool
- 02. Spoof
- 03. sniffer script
- 04. spam
3. What is the full form of USB as used in the computer related activities ?
- 01. Universal Service Block
- 02. Universal Security Block
- 03. Universal Serial Bus
- 04. None of these
4. Microprocessor can be used to make ?
- 01. Digital Systems
- 02. Calculators
- 03. Computer
- 04. All of the above
5. When did arch rivals IBM and Apple computers Inc. decide to join hands ?
- 01. 1992
- 02. 1991
- 03. 1980
- 04. 1993
6. Which of the following is the correct order of the four major functions of a computer ?
- 01. Process --> Output --> Process --> Storage
- 02. Process --> Storage --> Process --> Output
- 03. Input --> Output -- > Process --> Storage
- 04. Input --> Process --> Output a Storage
7. Which of the following is a Web browser ?
- 01. Fire fox
- 02. Power Point
- 03. Word
- 04. All are Web browsers
8. Which out of the following is not a DBMS software ?
- 01. SyBase
- 02. ORACLE
- 03. Data base 200
- 04. FOXPRO
9. Which of the following refers to a small, single-site network ?
- 01. CPU
- 02. RAM
- 03. USB
- 04. LAN
10. A Web site address is unique name that identifies a specific _____ on the web ?
- 01. Web site
- 02. Link
- 03. Web browser
- 04. None of these
IBPS CLERKS EXAM GENERAL AWARENESS PRACTICE QUESTIONS
1) Who among the following is not the present Deputy Governor of Reserve Bank of India ?
- 1) K.C.Chakra varthy
- 2) Subhir Gokarn
- 3) D. Subba Rao
- 4) Anand Sinha
- 5) H. R.khan
2) On 4th July 2011, the Reserve Bank of India on extended the ......... % ceiling of bank investment in liquid schemes of mutual funds Z to include snort-term debt funds ?
- 1) 7
- 2) 8
- 3) 9
- 4) 11
- 5) 10
3) Fixed Deposit also called as ........ ?
- 1) Term Deposit
- 2) Steer Deposit
- 3) Validity Deposit
- 4) No Cancel Deposit
- 5) Inter Deposit
4) Expand CDSL ......... ?
- 1) Central Deposit Source Limited
- 2) Central Deposit Signal Limited
- 3) Central Depository Services Loyalty
- 4) Central Dena Services Limited
- 5) Central Depository Services Limited
5) India is set for a record food grains production in the 2010-11 crop year at ........ million tonnes as per the advance estimates released by the Agriculture Ministry ?
- 1) 222.28
- 2) 232.12
- 3) 321.25
- 4) 241.56
- 5) 201.20
6) By 31 st March 2011, the Non-performance Assets (NPA) to all banks reached about . ..,...... percent ?
- 1) One
- 2) Three
- 3) Five
- 4) Ten
- 5) Eight
7) The best alternative banking service to branch banking to be the part of Financial Inclusion ?
- 1) Establishment of small branches
- 2) Setup ATMs
- 3) Issuing of ATM cards
- 4) Giving Credit Cards
- 5) Mobile banking
8) Central Bank ol India has tie up with .......... to promote vocational training amongst the youth ?
- 1) National Skill Deemed Corporation (NSDC)
- 2) National Steamed Development Corporation (NSDC)
- 3) National Skill Development Corporation (NSDC)
- 4) Notional Skill Development Corporation (NSDC)
- 5) None
9) Banks giving the towest lending the ........ Part of india ?
- 1) Central
- 2) North Eastern
- 3) Southern
- 4) Western
- 5) Northern
10) ........ is a good step it RBI to stop the Capital Outflows and contain the currency depreciation ?
- 1) increase the bank license tee
- 2) restricting customers not to use other ATM
- 3) decrease the interest rates
- 4) increase the interest rates
- 5) None
11) Committee Of Secretaries(COS) recommend .,....... percent of FDI in the multibrand retail sector ? ( Committee headed by Ajay Kumar Seth)
- 1) 49
- 2) 74
- 3) 51
- 4) 26
- 5) 100
12) On 18 July 2011, Atripariite agreement was signed between the Centre, West Bengal government and the Gorkha Janrriukti Moroha(GJM) paving the way for the setting up of the GTA en elected body tor the Darjeeling hills. GTA means ?
- 1) Gorkhalarld Terminal Administration
- 2) Gorkhaland Territorial Authority
- 3) Gorkha 'lime Administration
- 4) Gorkha Territorial Administration
- 5) Gorkhalend Territorial Administration
13) Shanghai Cooperation Organization Summit, 2011 details are given. Pick the wrong option ?
- 1) On 15 June 2011 the summit held in Astana ( capital of Kazakhstan)
- 2) China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan are the member states
- 3) The head quarters is Shanghai. Muratbek Sansyzbayevich tmanaliyev is the secretary General
- 4) India was removed as the member of SCO recently
- 5) The internal members Cooperation is the agenda of this summit
14) The oountry's first-ever socio-economic and caste Census to identity people living below poverty line (BPL) started on June 29, 2011 at tribal village ot Sankhola of ________ ?
- 1) Maharashtra
- 2) Andhra Pradesh
- 3) Jammu
- 4) Bihar
- 5) Tripura
15) Plastic Card of the banks do not include ?
- 1) Passport issued by Indian Government
- 2) Credit Card issued by SBI
- 3) Debit Card issued by ICICI
- 4) Pre-Paid Card issued by HSBC
- 5) ATM Card issued by foreign Banks
16) On 5 July 2011, $ 200 million granted by World Bank to strengthen panchayats and municipalities in ......... ?
- 1) Tamilnadu
- 2) Andhra Pradesh
- 3) Rajasthan
- 4) Uttar Pradesh
- 5) Kerala
17) Re framed National Plural Livelihood Mission (NRLM) got $ ibillion as credit to improve livelihood prospects in the country's rural economy from ........ ?
- 1) IMF
- 2) IDA
- 3) World Bank
- 4) IFC
- 5) ODA
18) ......... allocated more administrative and financial powers to panchayats to further strengthen Panchayati FlaInstitutions recently ?
- 1) Haryana
- 2) Himachal Pradesh
- 3) Tamilnadu
- 4) Sikkim
- 5) Delhi
19. ........ was nominated to the Nobel Peace Prize from India` to recognize his initiatives to bring peace among ethnic communities ot the north east ? .
- 1) Pope Bendict XIV ?
- 2) Thome Bendict XII
- 3) Thomas Menampararripil
- 4) Bendict Louis
- 5) None
20) Authors and Books given. Pick the wrong combination ?
- 1) Straight from the Haat - Bradman
- 2) Sunny Days - Gavaskar
- 3) It Cricket is a Fieligion, Sachin is God Vijay Santhanam
- 4) Wide Angie - Anil Kumble
- 5) Standing My Ground — Mathew Hayden
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