UPSC 1998 › Indian Economy

16 questions · 1998 · answers as per the UPSC key

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Topics: External Sector & Balance Of Payments (3)Human Development, Poverty & Employment Schemes (2)International Trade & WTO (2)National Income & Economic Growth (2)Banking & Financial Sector (1)Financial Markets & Capital Markets (1)Fiscal Policy & Budget (1)Inflation & Price Indices (1)Infrastructure & Industry (1)International Institutions & Reports (1)Monetary Policy & Money Supply (1)

Some time back, the Government of India decided to delicense the ‘white-goods’ industry. ‘White goods’ include

(a) stainless steel and aluminium utensils
(b) milk and milk products
(c) items purchased for conspicuous consumption
(d) soaps, detergents and other mass-consumption goods
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Answer: (c) items purchased for conspicuous consumption

Which one of the following regions of the world supplies the maximum of our imported commodities (in terms of rupee value)?

(a) Africa
(b) America
(c) Asia and Oceania
(d) Europe
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Answer: (d) Europe

Consider the following statements: The price of any currency in the international market is decided by the I. World Bank II. Demand for goods/services provided by the country concerned III. Stability of the government of the concerned country IV. Economic potential of the country in question Of these statements:

(a) I, II, III and IV are correct
(b) II and III are correct
(c) III and IV are correct
(d) I and IV are correct
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Answer: (b) II and III are correct

A consumer is said to be in equilibrium, if

(a) he is able to fulfil his need with a given level of income
(b) he is able to live in full comforts with a given level of income
(c) he can fulfil his needs without consumption of certain items
(d) he is able to locate new sources of income
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Answer: (a) he is able to fulfil his need with a given level of income

The supply-side economics lays greater emphasis on the point of view of the

(a) producer
(b) global economy
(c) consumer
(d) middle-man
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Answer: (a) producer

Human Poverty Index was introduced in the Human Development Report of the year

(a) 1994
(b) 1995
(c) 1996
(d) 1997
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Answer: (d) 1997

Which of the following pairs are correctly matched? I. Dow Jones : New York II. Hang Seng : Seoul III. FTSE-100 : London

Select the correct answer using the codes given below:

(a) I, II and III
(b) II and III
(c) I and II
(d) I and III
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Answer: (d) I and III

The economist who was associated with the WTO draft document is

(a) A.K. Sen
(b) T.N. Srinivasan
(c) J.N. Bhagwati
(d) Avinash Dixit
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Answer: (c) J.N. Bhagwati

The number of economically active women (excluding students and those doing domestic duties in their homes) as a percentage of all women of working age (generally those aged 15-64 years) was the highest in 1996 in

(a) USA
(b) China
(c) Russia
(d) S. Korea
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Answer: (b) China

According to the World Development Report, low-income economies are those for which the per capita GNP in 1994 was

(a) US $ 925 or less
(b) US $ 825 or less
(c) US $ 725 or less
(d) US $ 525 or less
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Answer: (c) US $ 725 or less

The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called

(a) SBR (Statutory Bank Ratio)
(b) SLR (Statutory Liquid Ratio)
(c) CBR (Central Bank Reserve)
(d) CLR (Central Liquid Reserve)
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Answer: (b) SLR (Statutory Liquid Ratio)

The accounting year of the Reserve Bank of India is

(a) April – March
(b) July – June
(c) October – September
(d) January – December
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Answer: (b) July – June

Which one of the following is the correct sequence of decreasing order of the given currencies in terms of their value in Indian Rupees?

(a) US dollar, Canadian dollar, New Zealand dollar, Hong Kong dollar
(b) US dollar, New Zealand dollar, Canadian dollar, Hong Kong dollar
(c) US dollar, Hong Kong dollar, New Zealand dollar, Canadian dollar
(d) US dollar, Hong Kong dollar, Canadian dollar, New Zealand dollar
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Answer: (a) US dollar, Canadian dollar, New Zealand dollar, Hong Kong dollar

Capital Account Convertibility of the Indian Rupee implies

(a) that the Indian Rupee can be exchanged by the authorised dealers for travel
(b) that the Indian Rupee can be exchanged for any major currency for the purpose of trade in goods and services
(c) that the Indian Rupee can be exchanged for any major currency for the purpose of trading financial assets
(d) None of the above
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Answer: (c) that the Indian Rupee can be exchanged for any major currency for the purpose of trading financial assets

Economic Survey in India is published officially, every year by the

(a) Reserve Bank of India
(b) Planning Commission of India
(c) Ministry of Finance, Government of India
(d) Ministry of Industries, Government of India
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Answer: (c) Ministry of Finance, Government of India

The current price index (base 1960) is nearly 330. This means that

(a) all items cost 3.3 times more than what they did in 1960
(b) the prices of certain selected items have gone up to 3.3 times
(c) weighted mean of prices of certain items has increased 3.3 times
(d) gold price has gone up 3.3 times
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Answer: (c) weighted mean of prices of certain items has increased 3.3 times