← Assistant Professor / Lecturer
Past Questions
Which of the following industry provides job to the maximum number of people?
A)
Tronand Steel Industry
B)
Cotton Textiles
C)
Sugar Industry
D)
Tea Processing
In the context of Indian geography and industrial economics, the Cotton Textile industry is one of the oldest and largest organized industries in the country. It is highly labor-intensive, involving a vast chain of employment from ginning and spinning to weaving and processing. Compared to the other options: (a) Iron and Steel is capital-intensive and employs fewer people per unit of output; (c) Sugar industry is seasonal and concentrated in specific belts; (d) Tea processing is localized to specific hilly regions. The Cotton Textile industry's widespread distribution across various states and its massive scale of production make it the largest employer among the given options.
Which of the following indicates the performance of various industrial sectors of the Indian economy?
A)
Index of Industrial Production
B)
Purchasing Managers Index
C)
Wholesale Price Index
D)
All ofthese
The Index of Industrial Production (IIP) is the primary indicator used to measure the growth or contraction of various industrial sectors in the Indian economy. It tracks the volume of production of a basket of goods across three main sectors: Mining, Manufacturing, and Electricity.
Why other options are incorrect:
- Purchasing Managers Index (PMI): While PMI provides a snapshot of economic health based on surveys of private sector companies, it is a 'leading indicator' based on sentiment and perception rather than a comprehensive measure of actual industrial output volume across all sectors.
- Wholesale Price Index (WPI): WPI measures the change in the price of goods sold and traded in bulk by wholesale traders. It is an indicator of inflation (price changes), not a measure of industrial production performance (volume of output).
Therefore, the IIP is the most accurate and direct indicator of the performance of industrial sectors.
Which is the most widespread type of forest found in India?
A)
Tropical evergreen and semi-evergreen forests
B)
Tropical deciduous forests
C)
Tropical thorn forests
D)
Montane forests
Step-by-step reasoning:
1. Analysis of Forest Types: India's diverse climate and topography result in several forest types.
2. Tropical Deciduous Forests: Also known as 'Monsoon Forests', these are the most widespread forests in India. They are characterized by trees that shed their leaves for about 6 to 8 weeks in the dry summer to conserve water. They are further divided into Moist Deciduous and Dry Deciduous forests and cover a vast portion of the Indian peninsula, the foothills of the Himalayas, and eastern slopes of the Western Ghats.
3. Tropical Evergreen Forests: These are found in areas with very high rainfall (over 200 cm), such as the Western Ghats, Northeast India, and Andaman and Nicobar Islands. While dense, they cover a smaller total area than deciduous forests.
4. Tropical Thorn Forests: These are found in arid and semi-arid regions (Rajasthan, Gujarat, parts of Deccan plateau) where rainfall is less than 70 cm. They are restricted to specific dry zones.
5. Montane Forests: These are found in high-altitude regions like the Himalayas and Nilgiris, where vegetation changes with altitude. Their distribution is limited to mountainous terrains.
Conclusion: Based on geographical distribution and land cover data, Tropical Deciduous forests occupy the largest area of India's forest cover.
Which one of the following is an important measure of ‘Sterilization’ under Reserve Bank of India?
A)
Open Market Operations
B)
Regulating functions of Non-Banking Financial Institution
C)
Increase in the Cash Reserve Ratio
D)
Decrease in the Statutory Liquidity Ratio
Sterilization refers to the action taken by a central bank (like the RBI) to offset the effects of foreign exchange inflows or outflows on the domestic monetary base. When the RBI buys foreign currency to prevent the domestic currency (Rupee) from appreciating, it injects an equivalent amount of Rupees into the banking system, which increases liquidity and can lead to inflation. To 'sterilize' this effect, the RBI must remove that excess liquidity from the system. The primary tool used for this is Open Market Operations (OMO), specifically the sale of government securities. By selling securities, the RBI absorbs the excess liquidity (Rupees) from the commercial banks, thereby neutralizing the impact of the foreign exchange intervention.
Why other options are incorrect:
- b. Regulating NBFCs is a supervisory function and does not manage systemic liquidity for sterilization.
- c. While increasing the Cash Reserve Ratio (CRR) does reduce liquidity, it is a blunt tool that affects the cost of credit and bank lending capacity across the board; OMO is the standard and most flexible instrument specifically used for sterilization.
- d. Decreasing the Statutory Liquidity Ratio (SLR) would actually increase liquidity in the system, which is the opposite of what is required during sterilization of inflows.
Which of the following defines depreciation?
A)
Destruction ofa plant in a fire accident
B)
Loss of equipment over time due to wear and tear
C)
Closure of a plant due to labour trouble
D)
Closure ofa plant due to lockout
In economics and accounting, depreciation refers to the gradual decrease in the value of a physical asset over time. This occurs primarily due to three reasons: normal wear and tear from usage, obsolescence (becoming outdated), or the natural passage of time.
Step-by-step analysis of options:
- Option (a) 'Destruction of a plant in a fire accident' is considered a 'capital loss' or an unexpected casualty, not depreciation. Depreciation is a predictable, gradual process.
- Option (b) 'Loss of equipment over time due to wear and tear' perfectly matches the definition of depreciation, as it describes the gradual consumption of the asset's value through use.
- Option (c) 'Closure of a plant due to labour trouble' is an operational or management issue resulting in a loss of production, not a loss in the value of the physical asset itself.
- Option (d) 'Closure of a plant due to lockout' is similar to option (c); it is a temporary cessation of activity and does not define the accounting concept of depreciation.
Which one of the following is NOT a part of the definition of a town as per the Census of India?
A)
Population density of 400 persons per sq km
B)
Presence of municipality
C)
More than 75% of the population engaged in primary sector
D)
Population size of more than 5,000 persons
According to the Census of India, a settlement is classified as a 'Town' if it satisfies the following three criteria: 1. It has a minimum population of 5,000. 2. At least 75% of the male main working population is engaged in non-agricultural (secondary and tertiary) pursuits. 3. It has a density of population of at least 400 persons per sq km. Additionally, any settlement with a municipality, corporation, cantonment board, or notified town area committee is automatically classified as a town regardless of the above criteria.
Analyzing the options:
- Option (a) is a correct criterion (400 persons per sq km).
- Option (b) is a correct criterion (Presence of a municipality).
- Option (d) is a correct criterion (Population > 5,000).
- Option (c) is INCORRECT because the Census requires more than 75% of the population to be engaged in NON-agricultural (non-primary) sectors. Engagement in the primary sector (agriculture) is a characteristic of a village, not a town.
The largest speakers of Dravidian language is-
A)
Kannada
B)
Malayalam
C)
Tamil
D)
Telegu
The Dravidian language family consists of several languages spoken primarily in Southern India. Based on census data (such as the Census of India 2011), Telugu is the most widely spoken Dravidian language in terms of the total number of speakers.
1. Telugu (Option d): It has the highest number of native speakers among the Dravidian group, primarily spoken in Andhra Pradesh and Telangana.
2. Tamil (Option c): It is the second most spoken Dravidian language, primarily spoken in Tamil Nadu and Puducherry.
3. Kannada (Option a): It ranks third, primarily spoken in Karnataka.
4. Malayalam (Option b): It has the smallest speaker base among the four major Dravidian languages, primarily spoken in Kerala.
Therefore, Telugu is the largest Dravidian language by speaker population.
One of the problems of India’s Foreign Trade is-
A)
Payment of import in rupees
B)
Increasing quantity of exports
C)
Unfavourable terms of trade
D)
None of these
Step-by-step reasoning:
1. Analysis of Option (a): Payment of imports in rupees is generally not a 'problem' but a goal (Internationalization of the Rupee) to reduce dependence on the US Dollar. Most global trade is still conducted in hard currencies, but paying in local currency is an advantage, not a problem.
2. Analysis of Option (b): Increasing the quantity of exports is a positive economic indicator and a primary goal of any government to boost GDP and foreign exchange reserves. It is a solution, not a problem.
3. Analysis of Option (c): 'Terms of Trade' (ToT) refers to the ratio between export prices and import prices. 'Unfavourable terms of trade' occur when the price of a country's exports declines relative to the price of its imports. Historically, India has faced this issue where it exports low-value primary goods or agricultural products and imports high-value capital goods or crude oil. When import prices rise faster than export prices, the country must export more volume just to maintain the same level of imports, which is a significant structural problem in foreign trade.
4. Conclusion: Option (c) is the only choice that describes a systemic economic challenge facing India's foreign trade.
Which one is not a Constitutional body?
A)
Finance Commission
B)
Election Commission
C)
CAG
D)
NDC
A Constitutional body is an entity established by the Constitution of India, meaning it is mentioned in the articles of the Constitution and its powers and functions are derived from it.
1. Finance Commission: Established under Article 280 of the Constitution. (Constitutional Body)
2. Election Commission: Established under Article 324 of the Constitution. (Constitutional Body)
3. CAG (Comptroller and Auditor General of India): Established under Article 148 of the Constitution. (Constitutional Body)
4. NDC (National Development Council): The NDC is an executive body created by a government resolution in 1952 to strengthen and systematize the process of planning. It is not mentioned in the Constitution of India. (Non-Constitutional/Executive Body)
Therefore, the NDC is not a Constitutional body.
Which of the following Committee is related to poverty study?
A)
Tendulkar
B)
Vijay Kelkar
C)
R.V Easwar
D)
Chelliah
The correct answer is the Tendulkar Committee.
1. **Tendulkar Committee (Option a):** Formed in 2007 and submitting its report in 2009, the committee headed by Suresh Tendulkar redefined the poverty line in India. It moved away from the calorie-based approach to a methodology based on Monthly Per Capita Consumption Expenditure (MPCE) on health and education, providing a more comprehensive measure of poverty.
2. **Vijay Kelkar (Option b):** The Kelkar Committee is primarily associated with tax reforms (Direct and Indirect taxes) and the restructuring of the PPP (Public-Private Partnership) model in India.
3. **R.V. Easwar (Option c):** While there are various administrative committees, R.V. Easwar is not associated with a landmark national committee for poverty estimation in the Indian Economy.
4. **Chelliah (Option d):** The Raj Chelliah Committee is famous for its recommendations on Tax Reforms in India (specifically the Chelliah Committee on Tax Reforms in the 1990s), focusing on simplifying the tax structure and reducing rates.
Who has fixed the Minimum Support Price for crops?
A)
Cabinet Committee on Economic Affairs
B)
Commission for Agriculture Cost and Prices
C)
NITI Aayog
D)
Parliament
The process of fixing the Minimum Support Price (MSP) in India involves two distinct stages: recommendation and approval.
1. The Commission for Agricultural Costs and Prices (CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare. Its role is to analyze costs of production and recommend the MSP for various crops.
2. However, the CACP does not have the authority to 'fix' or finalize the price. The final decision and the official fixing of the MSP are done by the Cabinet Committee on Economic Affairs (CCEA), which is chaired by the Prime Minister of India.
Why other options are incorrect:
- Option b (CACP): It only recommends the prices; it does not fix them.
- Option c (NITI Aayog): It is a policy think-tank and does not have the executive authority to fix MSP.
- Option d (Parliament): While Parliament oversees agricultural policy, the specific administrative task of fixing MSP is handled by the executive via the CCEA.
Silver Revolution relates to-
A)
Petroleum
B)
Egg/ Poultry
C)
Fertilizer
D)
Cotton
The 'Silver Revolution' refers to the significant increase in egg and poultry production in India. It was launched to enhance the production of eggs and poultry to ensure food security and boost the rural economy.
Analysis of other options:
- Option (a) Petroleum: Not associated with any 'color' revolution in the agricultural/economic sense (though 'Black Gold' is a common term for petroleum).
- Option (c) Fertilizer: Not associated with the Silver Revolution. The 'Grey Revolution' is sometimes associated with fertilizer production/use.
- Option (d) Cotton: Not associated with the Silver Revolution. The 'White Revolution' refers to Milk, and the 'Golden Fiber' refers to Jute.
Which of the following statement is correct?
A)
India is the largest producer of sugar in the world
B)
India is the largest exporter of Jute in the world
C)
India is the largest producer of silk in the world
D)
India is the largest producer of cement in the world
Step-by-step analysis of the options:
1. **Option (a): India is the largest producer of sugar in the world.** This is incorrect. Brazil is consistently the world's largest producer of sugarcane and sugar, followed by India.
2. **Option (b): India is the largest exporter of Jute in the world.** This is correct. India is the world's largest producer of jute and also the leading exporter of jute and jute products globally, owing to the favorable climatic conditions in the Ganges-Brahmaputra delta (particularly West Bengal).
3. **Option (c): India is the largest producer of silk in the world.** This is incorrect. China is the largest producer of silk globally by a significant margin, followed by India.
4. **Option (d): India is the largest producer of cement in the world.** This is incorrect. China is the largest producer of cement in the world. India typically ranks second.
Select the incorrect answer:
A)
Land Development Bank — Short Term Loans
B)
State Co-operative Banks — Short Term Loans
C)
NABARD — Rural Infrastructure Development Fund
D)
Regional Rural Banks — Loan to BPL
The question asks to identify the 'incorrect' statement among the options provided regarding rural credit institutions in India.
1. **Land Development Banks (LDBs):** These are specialized cooperative credit institutions designed to provide **long-term loans** to farmers for capital investments such as land improvement, purchase of machinery, and digging of wells. They do NOT provide short-term loans. Therefore, option (a) is incorrect.
2. **State Co-operative Banks (StCBs):** These act as the apex bodies for the cooperative credit structure in a state. They provide short-term and medium-term credit to Primary Agricultural Credit Societies (PACS) and other cooperative banks. Thus, option (b) is generally considered correct in the context of the credit flow.
3. **NABARD (National Bank for Agriculture and Rural Development):** NABARD manages the **Rural Infrastructure Development Fund (RIDF)**, which provides low-cost funding to state governments and institutions for creating rural infrastructure (like roads, bridges, and irrigation). Thus, option (c) is correct.
4. **Regional Rural Banks (RRBs):** RRBs were established specifically to cater to the credit needs of small and marginal farmers, agricultural laborers, and artisans, including those Below the Poverty Line (BPL). Thus, option (d) is correct.
Since option (a) incorrectly associates Land Development Banks with short-term loans, it is the correct choice for this 'select the incorrect answer' question.
Which of the following is not a credit control objective of RBI?
A)
To achieve stability in the Country’s currency rate and money market.
B)
Controlling the business cycle and meeting the needs of the company.
C)
To achieve price stability.
D)
To meet financial obligations during a down turn in the economy as well as in regular times.
The Reserve Bank of India (RBI) uses credit control (monetary policy) to manage the overall economy, not to manage the specific financial obligations of individual entities.
- Option (a) is a core objective: RBI manages the money supply and interest rates to ensure stability in the exchange rate and the money market.
- Option (b) is a core objective: By adjusting credit flow, RBI attempts to smooth out the business cycle (reducing the severity of booms and recessions) to maintain economic growth.
- Option (c) is a core objective: Price stability (controlling inflation) is the primary mandate of the RBI's monetary policy framework.
- Option (d) is incorrect because 'meeting financial obligations' is the responsibility of individual borrowers, companies, or the government (fiscal management), not a macro-level credit control objective of the central bank. The RBI provides liquidity to the banking system (Lender of Last Resort), but its objective is not to ensure that specific entities meet their private financial obligations.
The concept of Five-Year plans in the Constitution of India is borrowed from-
A)
Russia
B)
England
C)
The United States
D)
Germany
The concept of Five-Year Plans (FYPs) was adopted by India from the former Soviet Union (USSR), which is now Russia. The USSR first implemented a five-year plan under Joseph Stalin in 1928 to rapidly industrialize the country. India adopted this model of centralized economic planning starting with its first Five-Year Plan in 1951 to address poverty, food shortages, and infrastructure needs.
Why other options are incorrect:
- England (UK): India borrowed the Parliamentary system and the Rule of Law from the UK, not the economic planning model.
- The United States: India borrowed Fundamental Rights, Judicial Review, and the removal of judges from the US Constitution.
- Germany: While Germany has a strong economic model (the Social Market Economy), the specific structural framework of 'Five-Year Plans' as a state-led developmental tool was specifically borrowed from the Soviet Union.
When was the Planning Commission set up?
A)
2000
B)
2019
C)
1947
D)
1950
The Planning Commission of India was established on March 15, 1950, by a Government of India resolution. It was a non-constitutional, non-statutory body created to formulate Five-Year Plans for the economic development of the country.
Analysis of options:
- Option (a) 2000: Incorrect. The Planning Commission was already operational for 50 years by this time.
- Option (b) 2019: Incorrect. In fact, the Planning Commission was replaced by the NITI Aayog (National Institution for Transforming India) on January 1, 2015.
- Option (c) 1947: Incorrect. While India gained independence in 1947, the formal body for planning was established a few years later.
- Option (d) 1950: Correct. This is the year the Planning Commission was officially set up.
National Income in India is estimated by-
A)
Finance Commission
B)
Indian Statistical Institute
C)
Central Statistical Organization
D)
Finance Commission
The estimation of National Income in India is the primary responsibility of the Central Statistical Organization (CSO). The CSO is a government agency under the Ministry of Statistics and Programme Implementation (MoSPI). It calculates the Gross Domestic Product (GDP), National Income, and other key macroeconomic indicators. Note: In recent years, the CSO and NSSO (National Sample Survey Office) have been merged to form the National Statistical Office (NSO), but in the context of standard competitive exam options, the CSO is the recognized entity for national income accounting.
Why other options are incorrect:
- Finance Commission: This is a constitutional body responsible for recommending the distribution of financial resources between the Union and the States.
- Indian Statistical Institute (ISI): While ISI is a premier academic and research institute that provides technical expertise and has historically collaborated on statistics, it is not the official government body mandated to estimate the national income.
- Option (d) is a repetition of option (a).
Budget Deficit means-
A)
Fiscal Deficit — Interest Payment
B)
Revenue Receipts + Capital Receipts — Total Expenditure
C)
Total Expenditure — Total Receipts
D)
Revenue Expenditure — Revenue Receipts
In the context of a government budget, a 'Budget Deficit' (often used as a general term for the overall deficit) occurs when the government's total expenditure exceeds its total receipts (income).
Step-by-step analysis of the options:
1. Option (c) 'Total Expenditure — Total Receipts' is the general definition of a budget deficit. It represents the gap between what the government spends and what it earns.
2. Option (d) 'Revenue Expenditure — Revenue Receipts' defines the 'Revenue Deficit'. This specifically measures the shortfall in operational income to cover operational expenses.
3. Option (a) 'Fiscal Deficit — Interest Payment' defines the 'Primary Deficit'. The Primary Deficit is the fiscal deficit minus interest payments on previous borrowings.
4. Option (b) 'Revenue Receipts + Capital Receipts — Total Expenditure' would actually calculate a budget surplus if the result is positive, or the negative of a deficit.
Therefore, the most accurate general definition for Budget Deficit among the choices provided is Total Expenditure minus Total Receipts.
Which of the following states has produced Rice after the Green Revolution only?
A)
West Bengal
B)
Uttar Pradesh
C)
Punjab
D)
Tamil Nadu
The Green Revolution, introduced in India in the mid-1960s, focused on increasing agricultural productivity through the use of High Yielding Variety (HYV) seeds, chemical fertilizers, and improved irrigation.
1. **Punjab**: Traditionally, Punjab was a wheat-growing region due to its semi-arid climate and soil. However, with the introduction of HYV seeds and the expansion of canal and tube-well irrigation during the Green Revolution, Punjab shifted significantly toward rice cultivation. It became one of the leading producers of rice despite rice not being a naturally dominant crop for the region's climate prior to these technological interventions.
2. **West Bengal**: This state is located in the Ganges-Brahmaputra delta with high rainfall and alluvial soil, making it a natural rice-growing region long before the Green Revolution.
3. **Uttar Pradesh**: While it benefited greatly from the Green Revolution, UP has a long history of rice cultivation in its eastern and central plains due to favorable climatic conditions.
4. **Tamil Nadu**: Southern India has been producing rice for centuries due to the tropical climate and the presence of river systems like the Kaveri, making it a traditional rice-producing state.
Therefore, Punjab is the state that emerged as a major rice producer specifically as a result of the technological shifts brought about by the Green Revolution.
Governor acts on the aid and advice of the
A)
Chief Minister
B)
Prime Minister
C)
Home Minister
D)
State Council of Ministers
According to the Constitution of India, the Governor is the nominal executive head of a state, while the real executive power rests with the Council of Ministers headed by the Chief Minister. Article 163 of the Indian Constitution explicitly states that there shall be a Council of Ministers with the Chief Minister at the head to aid and advise the Governor in the exercise of his functions, except in so far as he is by or under this Constitution required to exercise his functions or any of them in his discretion.
Why other options are incorrect:
- Option (a) Chief Minister: While the Chief Minister leads the council, the Governor acts on the advice of the 'Council of Ministers' as a collective body (Collective Responsibility).
- Option (b) Prime Minister: The Prime Minister advises the President of India at the Union level, not the Governor at the State level.
- Option (c) Home Minister: The Home Minister is a member of the cabinet but does not independently provide the constitutional 'aid and advice' to the Governor.
The Union Cabinet chaired by the Prime Minister recently launched National Mission on Natural Farming till the end of -
A)
16th Finance Commission
B)
15 Finance Commission
C)
17th Finance Commission
D)
None of these
The Government of India, through the Union Cabinet chaired by the Prime Minister, has introduced the National Mission on Natural Farming (NMNF). This mission is designed to promote chemical-free farming and sustainable agricultural practices to improve soil health and farmer income. According to the official government guidelines and policy framework for the mission, the implementation and funding cycle of the National Mission on Natural Farming are aligned with the tenure of the 16th Finance Commission. This ensures that the mission's goals are integrated with the broader fiscal and developmental planning of the country for the specified period. Options b and c are incorrect as they refer to previous or future commission cycles that do not align with the current launch timeline of this specific mission.
Which of the following railway zones in India carries the maximum freight traffic?
A)
Eastern
B)
Western
C)
Northern
D)
Southern
The Eastern Railway zone (and the broader Eastern region including the South Eastern Railway) carries the maximum freight traffic in India. This is primarily due to the geographical location of the 'mineral belt' in the Chota Nagpur Plateau region (covering Jharkhand, Odisha, West Bengal, and Chhattisgarh). This region is rich in coal, iron ore, and manganese. Since coal is the primary fuel for India's thermal power plants and iron ore is essential for the steel industry, there is a massive and continuous movement of these bulk commodities via rail from the mines to the power plants and ports. While the Northern and Western zones handle significant traffic, they do not match the sheer volume of bulk mineral freight handled by the Eastern zones. Therefore, the Eastern Railway is the leader in freight loading and traffic volume.
The 1st Plan Holiday in independent India covered the period -
A)
1966 — 1969
B)
1965 — 1968
C)
1964 — 1968
D)
1965 — 1969
In the history of Indian economic planning, the 'Plan Holiday' refers to a period when the government did not implement a comprehensive five-year plan and instead opted for annual plans.
1. The First Five-Year Plan ran from 1951–1956.
2. The Second Five-Year Plan ran from 1956–1961.
3. The Third Five-Year Plan ran from 1961–1966.
Following the Third Plan, India faced severe economic crises, including the devaluation of the rupee, drought, and the aftermath of the 1962 and 1965 wars. Consequently, the government could not launch the Fourth Five-Year Plan immediately. The period from 1966 to 1969 is known as the 'Plan Holiday,' during which three annual plans were implemented. The Fourth Five-Year Plan eventually commenced in 1969 and lasted until 1974.
Therefore, option (a) 1966 — 1969 is the correct period.
Which of the following is not credit rating agencies?
A)
CRISIL
B)
ICRA
C)
CARE
D)
IDBI
A credit rating agency is an entity that assesses the creditworthiness of borrowers (companies or governments) by assigning a rating that indicates the likelihood of the borrower defaulting on its debt obligations.
1. CRISIL (Credit Rating Information Services of India Limited): India's first and largest credit rating agency, currently a subsidiary of S&P Global.
2. ICRA (Investment Information and Credit Rating Agency of India Limited): A prominent credit rating agency in India, associated with Moody's.
3. CARE (Credit Analysis and Research Limited): One of the leading credit rating agencies in India.
4. IDBI (Industrial Development Bank of India): IDBI was established as a development financial institution and later became a full-service commercial bank. It is a banking institution that provides loans and financial services, not a credit rating agency that evaluates the creditworthiness of others.
Therefore, IDBI is not a credit rating agency.