Banking Awareness Study Material – Indian Economy

Banking Awareness Study Material – Indian Economy

Banking Awareness Study MaterialComputer AwarenessMarketing Aptitude

Economy is a framework, within which economic activities like investment, production and consumption are carried out.  The economy of India is the 7th largest in the world by nominal GDP and the 3rd largest by Purchasing Power Parity (PPP). On a per capita income basis, India ranked 140th by nominal GDP and 122nd by GDP (PPP) in 2015, according to the IMF. India is the 19th largest exporter and the 13th largest importer in the world.

Economy
An economy consists of the production, trade of distribution and consumption of limited goods and services by different agents in a given geographical location. The economic agents can be individual, businesses, organisations or governments.

Types of Economy
Following are the types of economy

Capitalist Economy
In this type of economy, the central problems of economy is that there is no interference by the
government and price mechanism operate through the forces of demand and supply. In the United States of America, the role of the government is minimal and thus, it is the best example of market economy.

Socialist Economy
All important decisions regarding production, exchange and consumption of goods and services are made by the government. The closest example of a centrally planned economy is the Soviet Union in the 20th century.

Mixed Economy
This type of economy consists of a combination of public sector and private sector units. A mixed economic system is an economic system that features characteristics of both capitalism and socialism. It basically incorporates governmental involvement in market based economy.

Some other types of economy are:

1. Welfare Economy It analyses the total good or welfare i.e. achieves at a current state as well as how it is distributed. Amartya Sen received the Nobel Prize in economic science in 1998 for his work in welfare economics.
2. Green Economy Green economy is an economy or economic development model based on sustainable development and a knowledge of ecological economics.

Sectors of Economy
Traditionally, economies are divided into three sectors

Primary Sector
This sector is involved in the extraction or harvesting of products from the Earth. It includes the production of raw materials and basic foods.
Some of the activities included in this sector are as follows:

• Agriculture
• Mining (metals, minerals and ores mining)
• Forestry
• Fishing, etc.

Secondary Sector
The secondary sector of the economy is involved in the production of finished goods. All manufacturing processing and construction activities lie in this sector.
Some of the activities included in this sector are as follows:

• Manufacturing e.g. building
• Production e.g. cloth and bread
• Electricity, gas and water etc., related works.

Tertiary Sector
The tertiary sector of the economy is also called the service sector.
Some of the activities, which are part of this sector are as follows:

• Retail      –     Transport and communication
• Banking  –    Entertainment
• Tourism  –    Trade, etc.

Core Sector
The core sector consists of eight core industries in the economy having a weightage of 37.90% in the Index of Industrial Production (HP). These eight sectors are coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement and electricity.

Countries Classification by                     
Income Level
The World Development Report by World Bank as of July, 2016 classified the different countries on the basis of their per capita income. Categories are

Categories                                            GNI Per Capita (US $)
Low Income Countries                            US $ 1025 and less
Lower Middle Income Countries          US $ 1026-US$4035
Upper Middle Income Countries          US $ 4035-US$ 12475
High Income Countries                          US $ 12476 and above

Least Developed Countries (LDCs)
These are countries, which exhibit the lowest levels of socio-economic indicators. According to United Nations, to be classified as an LDC, a country should meet the following criteria

1. Low Income: Last 3 yr, average GDP per capita should be less than US $ 999, which should exceed US $ 1190 to leave the list.
2. Human Resource Weakness: It is based on indicators of nutrition, health, education and adult literacy.
3. Economic Vulnerability: It is based on instability of agricultural production, instability of exports of goods and services and percentage of population displaced by natural disasters.

Economic Growth
Economic growth is conventionally measured as a percentage increase in GDP or GNP or per capita NDP during 1 yr. Per capita NDP is the.most appropriate measure of economic growth.

Economic Development
Economic development is the development of economic wealth of countries, regions or communities for the well being of their inhabitants. In general, economic development is usually the focus of federal, state, and local governments to improve our standard of living through the creation of jobs, the support of innovation and new ideas, the creation of higher wealth, and the creation of an overall better quality of life.

Measurement of Economic Development
Various models to measure economic development and comparative situation of different countries are

• Purchasing power parity method
• Human development index
• Green GNP
• Net economic welfare
• Poverty Index
• Basic necessities
• Physical quality of life index
• National prosperity index
• Gender based development index

National Income
It measures the net value of goods and services produced in a country during a year and it also includes net factor income from abroad, i.e. National Income (NI) measures the productive power of an economy in a given period to turn out goods and services for final consumption. In India, National Income estimates are related with the financial year (1st April to 31st March).

Estimates of National Income in India

• In 1868, the first attempt was made by Dadabhai Naoroji in his book ‘Poverty and UN-British Rule in India’. He estimated the per capita annual income to be ? 20.
• The first scientific attempt to measure national income in India was made by VKRV Rao in 1931-32. He divided the Indian economy into 13 sectors.
• In 1949, National Income Committee under the Chairmanship of PC Mahalanobis was constituted. The other members being Prof. VKRV Rao and Prof. DR Gadgil.
• National Statistical Commission (NSC) was setup on 1st June, 2005, for promoting statistical network in the country on the recommendation of C. Rangarajan Commission.

Concepts of National Income
National Income can be measured by GND, GDP, GNI, NNP, NNI and per capita income. GNP and per capita income, are considered as the most standard measure of economic development.

Concepts of national income are as follows:

• Gross Domestic Product (GDP)
  It is the money value of all final goods and services produced in the domestic territory of a country during the given time (a year). In GDP, income generated by foreigners in a country is included, but income generated by nationals of a country, outside the country is not included.
  GDP = Consumption (C) + Investment (I) + Consumption Expenses (G)
• Gross Value Added (GVA)
  It is a measure of the value of goods and services produced in an area, industry or sector of an economy. In national accounts, GVA is output minus intermediate consumption, it is a balancing item of the national accounts’ production account.
• Gross National Product (GNP)
  It is a monetary value of all final goods and services produced by the residents of a country in a year.
  GNP = GDP + Income generated by nationals of country outside the country (X) – Income generated by foreigners in a country (M).
• Net National Product (NNP)
  It is the value of GNP after deducting depreciation of plant and machinery.
  NNP = GNP – Depreciation
• Personal Income (PI)
  It is the part of National Income, which is received by the persons including households. Therefore, to calculate personal income, some adjustments are to be made for those incomes, which are included in the national income but not actually received by the persons and there may be some income which is not included in national income but they are actually received by the persons.
• Disposable Personal Income (DPI)
  The persons will have to pay the personal tax on personal income. Any income remaining out of personal income after the payment of personal tax and some other fines is termed as DPI.
  DPI = Personal income – Personal tax (Income tax) + Subsidies
• Real National Income (RNI)
  It is the actual quantity of goods and services produced. Standard of living depends very much on the qualities of goods and services produced. NNP = GNP – Consumption of capital stock
• Market Price and Factor Cost
  • Market Price It refers to the actual transacted price and it includes indirect, direct taxes such as excise duty, VAT, Service Tax, Custom duty etc., but it excludes government subsidies.
  • Factor Cost It means this total cost of all factors of production consumed or used in producing goods or services. It includes government grants and subsidies but it excludes indirect tax.

Methods of Measuring National Income
National income can be calculated by three methods which are as follows

1. Production Method: Net value of final goods and services produced in a country during a year is obtained, which is called total final product. It emphasising a calculation of the net contribution at every stage of production/ manufacturing. This is referred to as a value addition concept.
2. Income Method: In this method, a total of net income earned by working people in different sectors and commercial enterprises is obtained. Incomes of both categories of people- paying taxes and not paying taxes are added to obtain national income. By income method, National Income is obtained by adding receipts as total rent, total wages, total interest and total profit.
   

   Purchasing Power Parity (PPP) It refers to the adjustment to be made in the value of , money in a country so that identical goods cost identical money in a particular currency across all countries. Per capita income should be measured in PPP terms to reflect the actual standard of living in a country.

3. Consumption Method: It is also called expenditure method. Income is either spent on consumption or saved. Hence, National Income is the addition of total consumption and total savings. In India, a combination of production method and income method is used for estimating National Income.

Organisation Engaged in Related to NI
The Indian Organisations related to NI are as follows:

National Sample Survey Organisation (NSSO)
It was setup in 1950 as a permanent survey organisation to conduct national sample surveys to assist in socio-economic planning and policy-making. It was recognised in 1970, by bringing together all aspects survey work under a single agency known as NSSO. It undertakes the field wofk of annual survey of industries in the whole country, except Jammu and Kashmir.

Central Statistical Organisation (CSO)
For coordination of statistical activities of the different Central Ministries and the State Governments and for promotion of statistical standards, the Central Statistical Organisation (CSO) was created in May, 1951. CSO prepares national accounts, compiles and publishes industrial statistics and conducts economic census and surveys. It is one of the two wings of the NSO alongwith NSSO, responsible for coordination of statistical activities in the country and for evolving and maintaining statistical standards.

Tit-Bits

• National Statistics Office (NSO) came into being in March, 1947.
• Green Index measures the nation’s wealth according to provisions of control on greenhouse gases.
• National Statistical Commission (NSC) was established on 1st June, 2005 and activities started on July, 2006 in the leadership of Prof. Suresh Tendulkar.

Important Growth Index/Indicators
Following are the indicators to measure the economic development and social welfare:

Human Development Index (HDI)
The United Nations Development Programme (UNDP) introduced the HDI in its first Human Development Report (HDR) prepared under the stewardship of Mahbub -ul-Haq and the Indian economist Amartya Sen in 1990. It is a standard means of measuring well being. HDI measures the average achievements in a country in three basic dimensions of the human developments, a long and healthy life, access to knowledge and a decent standard of living. HDI tanks countries in relation to each other on a scale of 0 to 1.

The Human Development Index is based on these three indices and that are as follows:

1. Life Expectancy Index (LEI): Because infant morality is not entering this index as a separate indicator, so it refers to life expectancy at birth, not at age one.
2. Educational Attainment Index (EAI): It is a combination of adult literacy rate and combined enrolment ratio. The weight assigned to Adult Literacy Rate (ALR) is two-third while that for Combined Enrolment Ratio (CER) is one-third.
3. Standard of Living Index (SLI): It is represented here by a transformation of per capita income. Per capita income is converted into Purchasing Powered Parity (PPP). PPP is always measured in US dollars.

Other three Indexes of Human Development reports:

• Inequality-adjusted Human Development Index (IHDI): It combines a country’s average achievements in health, education income with how those achieve- ments are distributed among country’s population. IHDI equals HDI,when there is no inequality across people, but is less than HDI as inequality rises and can be expressed as a percentage.
• Gender Inequality Index (GII): GII is built on the same framework as the IHDI. The GII measures gender inequalities in three important aspects of human development reproductive health, measured by maternal mortality ratio and adolescent birth rates, empowerment and economic status expressed as labour market participation. It ranges from 0, which indicates that women and men fare equally to 1, which indicates that women fare as poorly as possible in all measured dimensions.
• Multidimensional Poverty Index (MPI): The MPI was developed in 2010, by Oxford Poverty and Human Development Initiative and the UNDP to determine poverty beyond income based list. The index uses the same three
  dimensions as the human development index such as health, education and standard of living. These are measured using 10 indicators.

Indicators of MPI
Dimensions	Indicators
Health	Child mortality, Nutrition
Education	Years of schooling, Children enrolled
Living	Cooking fuel, Toilet, Water, Electricity,
Standards	Floor, Assets

Physical Quality of Life Index (PQLI): These indicators reflected that economically less developed countries are simply underdeveloped versions of industrialised countries. Three component indicators of PQLI are as follows

• Life expectancy
• Infant mortality rate and
• Basic literacy

Gross National Happiness (GNH): It attempts to measure quality of life in a more holistic manner than just an economic indicator like GDP. The four pillars of GNH are promotion of sustainable development, preservation and promotion of cultural values, conservation of natural environments and establishments of good governance.
The term GNH was coined hi 1972, by Bhutan’s King Jigme Singye Wangchuck. GNH value is proposed to be an index function of the total average per capita of the following measures

• Economic Wellness
• Environmental Wellness
• Physical Wellness
• Mental Wellness
• Workplace Wellness
• Social Wellness
• Political Wellness

Global Hunger Index (GHI): It is a multidimensional statistical tool used to describe the state of country’s hunger situation. The index was adopted and further developed by International Food Policy Research Institute (IFPRI) and was first published in 2006. The GHI combines four equally weighted indicators.

1. The proportion of undernourished as a percentage of the population.
2. The proportion of children under the age of 5 suffering from wasting.
3. The proportion of children under the age of 5 suffering from stunting.
4. The mortality rate of children under the age of 5.

Human Poverty Index (HPI): The UNDP introduced the Human Poverty Index. It is a combined measure using the dimensions of human life already considered in the HDI: life length, knowledge, a decent living standard. The index is calculated annually by the UNDP for all countries according to the availability of statistical data. It is prepared in two forms, depending on whether it is a developing (HPI-1) or an industrialised economy (HPI-2).

Gender Development Index (GDI): It was introduced in 1995 in the Human Development Report written by the United Nations Development Pragramme (UNDP). It highlights inequalities in the areas of long and healthy life, knowledge and a decent standard of living between men and women.

National Prosperity Index (NPI): The Prosperity Index goes beyond GDP to measure countries’ success against a broad set of metrics covering areas such as health, education, opportunity, social capital, personal freedom and more.
Hence, we have evolved what is called a National Prosperity Index (NPI) which is a summation of

• Annual growth rate of GDP;
• Improvement in quality of life of the people, particularly those living below the poverty line;
• The adoption of a value system derived from civilisational heritage in every walk of life is unique to India.

Five Year Plans in India
After independence, India launched a programme of Five Year Plans to make the optimum use of country’s available resources and to achieve rapid economic development. In India, development plans were formulated and carried out within the frame work of the mixed economy.

National Development Council
It plays a vital role in the process of Indian planning and development. The National Development Council (NDC) was constituted on 6th Aug, 1952. The National Development Council held its first meeting in November, 1952.

NITI Aayog
NITI Aayog or National Institution for Transforming India Aayog came into existence on 1st Jan, 2015. It is a policy-making think-tank of the government that replaces planning commission and aims to involve states in economic r   policy-making which will be providing strategic and technical advice to the Central and the State Government.

Basic Structure of NITI Aayog
Chairperson	Prime Minister
Governing Council	Its members are Chief Minister and Administrators of the Union Territories
Special Invitees	Experts, Specialists and Practitioners with domain knowledge (nominated by Prime Minister)
Vice-President	Appointed by the Prime Minister
Fulltime Members	Their number is five.
Part time  Members	Two ex-officio members and university teacher.
Ex-officio Members	Four Central Ministers.
CEO	Secretary level officer from centre, who will be appointed for a fixed term.

15 Years Vision Document in Place of Five Year Plan
The first 15 yr vision document will come into effect from 2017-18 after the end of the 12 th Five Year Plan. It will be formulated with central objective of  eradication of poverty. It will come alongwith a 7 yr National Development Agenda which will lay down the programmes, schemes and strategies to achieve a long term vision. The long vision document (Perspective plan) will comprise of three year mass economic framework.

Population Census of India
Sequential census was started by Lord Rippon in the year, 1881. Since then, after every ten years, work of census is undertaken by Government of India. The year 1911-21 is a year of great divide in the demographic history of India when mortality started to decline leading to acceleration in the rate of population (Average Annual Exponential Growth Rate in 1921 was – 0.03%).

Census of India, 2011
Census is useful for formation of development policies, plan and demarcating constituencies of election. The Census of India has been conducted 15 times, as of 2011. Census 2011 was released in New Delhi on 31st March, 2011 by Union Home Secretary GK Pillai and Registrar General and Census Commissioner C Chandrmouli. The Census 2011, was the 15th National census of the country. The census has covered 28 states and 7 union territories, 640 districts, 5767 tehsils, 7933 towns and more than 6 lakh villages. The motto of Census 2011 was “Our census, Our future”. Census 2011 took place before the creation of Telangana, thus census provides data for 28 states only. It may be noted that all the states and Union Territories have shown an increase in literacy rate during 2001 -2011. India has the second largest population of older (60+) persons in the world.

India	Census 2011
Total population	121,08,54,977
Males	623.7 million (51.54%)
Females	586.46 million (48.46%)
Population of 0.6 age group	16,44,78,150 (13.58%)
Population density (per sq km)	382
Literacy	73.0% (Male-80.9% and Female-64.6%)
Decadal Growth Rate	18,14,55,986 (17.7%)
Population Increase (2001-2011)	181 million
Sex Ratio	943 : 1000

 

Question Bank 

1. Refinance facility is provided by NABARD. Which institutions can avail this facility?

1. State co-operative banks
2. Regional rural banks
3. Commercial bank
4. All of the above
5. None of the above

2. RBI has sold its entire stake except 1% in which of the following organisations?

1. DICGC
2. NABARD
3. SIDBI
4. National Housing Bank
5. None of these

3. Which one of the following is the correct sequence of contribution to gross domestic product in India by the various sectors of the economy in last 10 yr?

1. Agriculture-Industry-Service
2. Agriculture-Service-Industry
3. Service-Agriculture-Industry
4. Service-Industry-Agriculture
5. None of the above

4. Which of the following is not included in the estimates of National Income?

1. Sale of collector’s items
2. Addition to inventory, but not sale of the company’s products
3. Market rent of self owned house
4. Cost of government services
5. None of the above

5. The term ‘Gross National Happiness’ was coined by

1. Amartya Sen
2. Bhutan’s King
3. Maqbool Haq
4. European Union
5. Economists of Sweden

6. Central Statistical Organisation is now known as

1. Central Statistical Office
2. Central Science Office
3. Common Statistical Organisation
4. Current Statistical Organisation
5. Common Statistical Office

7. NNP stands for

1. Net National Product
2. National New Product
3. Net New Product
4. National Net Product
5. Net National Income

8. The largest share of Gross Domestic Product (GDP), in India comes from

1. agriculture and allied sector
2. manufacturing and construction
3. service sector
4. defence and public administration
5. defence and allied sector

9. GDP at factor cost is

1. GDP minus indirect taxes plus subsidies
2. GNP minus depreciation allowance
3. NNP plus depreciation allowance
4. GDP minus subsidies plus indirect taxes
5. None of the above

10. Gross Domestic Product (GDP) is defined as the value of all

1. goods produced in an economy in a year
2. goods and services in an economy in a year
3. final goods produced in economy in a year
4. final goods and services produced in an economy in a year
5. None of the above

11. Per capita income is obtained by dividing National Income by

1. total population of the country
2. total working population
3. area of the country
4. volume of the capital used
5. None of the above

12. Which of the following is not an apex institution?

1. SBI
2. SIDBI
3. NABARD
4. State Co-operative bank
5. None of the above

13. Net National Product (NNP) of a country is

1. GDP minus depreciation allowances :
2. GDP plus net income from abroad
3. GNP minus net income from abroad
4. GNP minus depreciation allowances
5. None of the above

14. Which sectors of Indian Economy contributes largest to the gross national product?

1. Primary sector
2. Secondary sector
3. Tertiary sector
4. Public sector
5. None of these

15. The main source of National Income of India is

1. service sector
2. agriculture
3. industrial sector
4. trade sector
5. None of these

16. Intermediate goods are excluded from GDP because

1. they represent goods that have never been purchased so they cannot be counted
2. their inclusion would understate GDP
3. their inclusion would involve double counting
4. the premise of the question is incorrect because intermediate goods are directly included in calculating GDP
5. value of intermediate goods is unknown

17. Gross domestic product is a measure of the total value of all

1. consumer income in an economy over a period of time
2. capital accumulation in an economy over a period of time
3. sales in an economy over a period of time
4. final goods and services produced in an economy over a period of time
5. final as well as intermediate goods and services produced in an economy over a period of time

18. The base year method of calculating real GDP compared

1. quantities produced in different years using prices from a year chosen as a reference period
2. quantities produced in different years with the prices that prevailed during the year in which the output was produced
3. the quantities of goods produced in consecutive years using prices in both years and averaging the percentage changes in the value of output
4. prices at different points in time using a sample of goods that is representative of goods purchased by households
5. None of the above

19. The concept of ‘Net Domestic Investment’ refers to

1. the amount of machinery and equipment used up in producing the GDP in a given year
2. the difference between the market value and book value of outstanding capital stock
3. gross domestic investment less net exports
4. total investment less the amount of investment goods used up in accomplishing the year’s production
5. None of the above

20. The GDP is the value of all final goods and services produced

1. within the nations boundaries
2. by domestically owned companies
3. by citizens of the country
4. by domestically controlled companies
5. None of the above

21. In any year, real GDP

1. might be greater or less than potential GDP
2. will always be greater than potential GDP because of the tendency of nations to incur inflamation
3. always equals potential GDP
4. must always be less than potential GDP
5. Cannot be determined

22.Who amongst the following economists gave the concept of ‘economies of scale’, which says ‘many goods and services’ can be produced more cheaply in long series’?

1. Edward C-Prescott
2. Amartya Sen
3. Gary S Becker
4. Edmund S Phelps
5. Paul Krugman

23. ‘National Mission for Green India’ is merged with

1. Swachha Bharat Abhiyan
2. National Rivers Conservation Scheme
3. National Afforestation Programme
4. MGNREGA
5. None of the above

24. ‘Deen Dayal Upadhyaya Grammen Kaushala Yojana’ provides quality skill training to the rural poor youth in the age group of

1. 25-35 yr
2. 18-25 yr
3. 20-35 yr
4. 25-30 yr
5. None of these

25. Which of the following is not included in National Income Accounts?

1. Second hand goods
2. Transaction in stock markets
3. Transfer payments
4. All of the above
5. None of the above

26. Which of the following is the standard definition of recession?

1. Negative GDP growth for the year as a whole
2. Negative GDP growth for two consecutive quarters
3. Negative GDP growth for three consecutive quarters
4. Negative GDP growth with increased rate of inflation compared to the previous years
5. Positive GDP growth for two consecutive quarters

27. Saansad Adarsh Gram Yojana (SAGY) was introduced on the birth anniversary of

1. JL Nehru
2. MK Gandhi
3. JP Narayan
4. AB Vajpayee
5. None of these

28. In the ‘Index of Eight Core Industries’ which one of the following is given the highest weight?

1. Coal production
2. Electricity generation
3. Fertilizer production
4. Steel production
5. None of the above

29. Which of the following comes close to the meaning of Green GDP, a measure that was introduced in China a few years ago?

1. The size of the renewable energy sector of the economy
2. The size of the GDP with environmental degradation substracted out in quantitative terms
3. The size of the GDP per unit of C0₂ emissions
4. All of the above
5. None of the above

30. When the growth of GDP in a country slows down suddenly, people start losing their jobs and the situation continues for several weeks, what name is given to this state of economy (A big country was in this state recently)?

1. Inflation
2. Recession
3. Deflation
4. Economic boom
5. None of these

31. The higher rate of growth of economy certainly reduces

1. gender inequalities
2. poverty
3. population of a country
4. flow of foreign direct investment
5. None of the above

32. In the present context of socio-economic development, the concept of ‘meeting the needs of the present without compromising the ability of future generations to meet their needs’ is popularly known as the concept of

1. sustainable development
2. uniform growth
3. target-driven growth
4. no risk-no growth
5. social viability

33. Real national income growth refers to

1. national income growth adjusted for inflation
2. national income growth adjusted for population growth
3. national income growth adjusted for depreciation rate
4. national income growth adjusted for saving growth
5. national income growth adjusted for saving

34. Which of the following is a major concept frequently referred in the economic literature of Dr Amartya Sen, the Nobel Prize winning economist?

1. Positive freedom
2. Corporate ethics
3. Capability to function
4. Negative freedom
5. Welfare economics

35.Which of the following is one of the indicators of Human Development Index (HDI)?

1. Life expectancy at birth
2. Total cost of the agricultural land with a family
3. Availability of perennial source of water for irrigation
4. Nature of employment, casual permanent or semi-permanent
5. Per capita area of land available

36. Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched in

1. 2004
2. 2005
3. 2006
4. 2007
5. 2010

37. ‘Bharat Nirman’ was launched in 2005 as a programme to build

1. rural infrastructure
2. urban infrastructure
3. housing scheme
4. Both 1 and 2
5. None of the above

38. ‘Housing for All by 2022’ is also known as

1. Sardar Patel Urban Housing Mission
2. Atal Bihari Urban Housing Mission
3. Deen Dayal Upadhyaya Urban Housing Mission
4. Indira Gandhi Awas Yojana
5. None of the above

39. ‘AMRUT’ stands for

1. Atal Mission for Renovation and Urban T ransformation
2. Atal Mission for Renovation and Urban Technology
3. Atal Mission for Rejuvenation and Urban Transformation
4. Atal Mission for Rejuvenation and Urban Technology
5. None of the above

40. Who announced the launch of Rashtriya Krishi Vikas Yojana?

1. Narendra Modi
2. Manmohan Singh
3. Pranab Mukherjee
4. Radha Mohan Singh
5. None of the above

41. Which among the following does not belong to welfare for the farmers?

1. Kisan Credit Card Scheme
2. SHG Bank Linkage Programme
3. National Agricultural Insurance Scheme
4. MGNREGA
5. None of the above

42. India’s first television channel dedicated to farmers was launched on

1. May 24, 2015
2. May 25, 2015
3. May 26, 2015
4. May 24, 2014
5. None of the above

43. PMKSY stands for

1. Pradhan Mantri Krishi Shiksha Yojana
2. Pradhan Mantri Kisan Shakti Yojana
3. Pradhan Mantri Krishi Sinchai Yojana
4. Pradhan Mantri Kisan Sinchai Yojana
5. None of the above

44. ‘Pradhan Mantri Gram Sadak Yojana’ was launched in

1. December, 2001
2. December, 2002
3. December, 2000
4. December, 2005
5. December, 2010

45. According to the World Bank, which of the following attributes of an economy are that of a ‘high income’ economy?
I. GDP per capita of $ 15000. 
II. Adult literacy of more than 95%.
III. Top 5 countries of the World GDP wise.
Select the correct answer using the codes given below:

1. Only I
2. Only III
3. I and II
4. I and III
5. II and III

46. Consider the following statements.
I. The base year for measuring GDP in India is 2011-12.
II. The CSO functions under the Ministry of Statistics and Programme Implementation.
III. NSSO is a part of Central Statistical Organisation (CSO).
Which of the statements given above is/are correct?

1. II and III
2. Only I
3. I and II
4. I and III
5. All of these

 

47. Which of the following are signs of an open economy?
I. Share of trade in GDP is high.
II. GDP and GNP are almost the same.
III. Exchange rate is determined by markets.
Select the correct answer using the codes given below

1. I and m
2. Only n
3. I and II
4. II and III
5. All of these

48. Which of the following are included, when calculating GDP by the expenditure method?
I. Value of tyres sold by a tyre manufacturer to a car manufacture.
II. Amount of imports.
III. Amount spent on education by a household.
Select the correct answer using the codes given below

1. Only II
2. I and II
3. U and in
4. Only m
5. All of these

49. GDP growth as a measure of development is unreliable because
I. it does not include enviromental degradation.
II. it does not measure growth in incomes.
III. it does not measure increase in jobs.
Select the correct answer using the codes given below

1. II and III
2. I and II
3. I and III
4. Only IH
5. All of these                                        .

50. Consider the following statements.
I. The first attempt to calculate National Income of India was made by Dadabhai Naoroji.
II. The first scientific method to calculate National Income of India was made by Prof. VKRV Rao.
Which of the statements given above is/are correct?

1. Only I
2. Only II
3. Both I and II
4. Neither I nor II
5. Either I or II

51. Consider the following statements.
I. GDP is abetter measure of National Income than GNP.
II. GNP is always higher than GDP.
Which of the statements given above is/are correct?

1. Only I
2. ]Only II
3. Both I and II
4. Neither I nor II
5. Either I or II

52. Consider the following statements.
I. Net national product is the most appropriate method to measure the economic growth of a country.
II. Max O Lorenz firstly introduced Gross domestic product to measure the economic growth of a country.
Which of the statements given above is/are correct?

1. Only I
2. Only H
3. Both I and II
4. Neither I nor II
5. Either I or II

53. What is a Green Index? [IBPS PO 2011]

1. It measures the nation’s wealth according to GNP per capita
2. It measures the nation’s wealth according to GDP per capita
3. It measures the nation’s wealth according to provisions of control on greenhouse gases
4. It measures the nation’s wealth in terms of coverage of forest area
5. None of the above

54. What is Gross Domestic Product? [IBPS PO 2011]

1. It is the cost of production of all final goods and services made in the country
2. It is the cost of services made within the borders of a country in a year
3. It is the market value of all final goods and services made in the country
4. It is the market value of all final goods and services made within the borders of a country in a year
5. None of the above

55. Mixed economy means [IBPS PO 2011]

1. co-existence of small and large industries
2. promoting both agriculture and industries in the economy
3. co-existence of public and private sectors
4. co-existence of the rich and the poor
5. existence of wholesale and retail markets

56. GNP stands for [IBPS PO 2011]

1. Gross National Product
2. Group Net Product
3. Grand Nuclear Process
4. Group Networking Process
5. None of the above

57. In economic terms, total market value of all final goods and services produced in a country in a given year is known as [RBI Grade B 2011]

1. GNI
2. GDP
3.  inflation
4. PPP
5. wealth of a nation

58. In India, the National Income is measured on the basis of  [RBI Grade B 2011]

1. flow of goods
2. number of employed youth
3. volume of tax collected per annum
4. earning of people working in PSUs and government jobs
5. All of the above

59. Which of the following is one of the measures of economic growth of a country? [RBI Grade B 2011]

1. Volume of direct investment made by foreign countries
2. Number of companies listed on the stock exchanges
3. Gross domestic product of the nation
4. Number of foreign nationals working in a country
5. All of the above

60. Which of the following is one of the indicators of Human Development Index (HDI)?  [RBI Grade B 2011]

1. Life expectancy at birth
2. Total cost of the agricultural land with a family
3. Total area of the agricultural land with a family
4. Availability of perennial source of water for irrigation
5. Nature of employment, casual permanent or semi-permanent

61. Increased interest rates, as is existing in the economy at present, will [IBPS PO 2012]

1. lead to higher GDP growth
2. lead to lower GDP growth
3. mean higher cost of raw materials
4. mean lower cost of raw materials
5. mean higher wage bill

62. Which of the following schemes has been launched by the Government of India to provide banking services in 7300 villages in India? [SBI PO 2012]

1. ASHA
2. Swabhiman
3. Kutir Jyoti
4. RAY
5. Swavalamban

63. Who amongst the following is a Nobel Laureate in Economics? [SBI Associates 2012]

1. Kaushik Basu
2. Subir Gokam
3. Dr Amartya Sen
4. Montek Singh Ahhiwalia
5. C Rangarajan

64. Poverty line is expressed in terms of an overall  [SBI Associates 2012]

1. per capita income
2. per capita consumption expenditure
3. per capita entertainment expenditure
4. per capita development expenditure
5. per capita GDP

65. Which of the following is the literacy rate in India as per new data released by the census commission? [SBI Assistant 2012; IBPS Clerk 2015]

1. 60%
2. 68%
3. 70%
4. 75%
5. 83%

66. Under the PMJDY, the government is looking to open at least…….. basic bank accounts for unbanked tambles in country.
[IBPS Clerk 2014]

1. 7.5 crore
2. 1.8 crore
3. 5.7 crore
4.  3 crore
5. 4.5 crore

67. Who bears the premium payable to the insurance company under accidental insurance cover under PMJDY scheme? [IBPS Clerk 2014]

1. Government of India
2. 50% by account holder and rest by the bank
3. NPCI
4. Account holder
5. RBI

68. The ‘Sansad Adarsh Gram Yojana’ has been launched on 11th Oct, 2014, the birth anniversary of  [IBPS Clerk 2014]

1. Jai Prakash Narayan
2. Shyam Prasad Mukherji
3. Lala Lajpat Rai
4. Deen Dayal Upadhyaya
5. Balraj Madhok

69. According to the 2011 census, the highest literacy rate is recorded by [IBPS Clerk 2014]

1. Delhi
2. Tripura
3. Mizoram
4. Kerala
5. Goa

70. Many times we read about SHGs in financial newspapers. What is the full form of the term SHGs? [IBPS Clerk 2014]

1. Self Help Groups
2. Other than those given as options
3. Small Help Groups
4. Small Hope in Growths
5. Self Hope Groups

71. As per Census 2011, the total urban population of India is 377.1 million. The State having the highest urban population of 50.8 million (13.5% of country’s urban population), is IBPS Clerk 2014]

1. Uttarakhand
2. Tamil Nadu
3. Uttar Pradesh
4. Maharashtra
5. Gujarat

72. Which of the following is a part of the Core Sector? [SBI Clerk 2014]

1. Textiles
2. Chemicals
3. Real Estate
4. Machine Manufacturing
5. Food Processing

73. Make in India Fund ? 1000 crore is under subsidary of  [IBPS PO 2015]

1. ICICI Bank
2. SIDBI
3. SBI
4. IDBI
5. RBI

74. Age limit for Pradhan Mantri Suraksha Bima Yojana is  [SBI PO 2015]

1. 15-50 yr
2. 20-60 yr
3. 18-70 yr
4. 15-70 yr
5. 15-90 yr

75. The Union Government on June, 2015 decided to increase the number of workdays under Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) from 100 days to…….. days in drought affected areas of the country. [SBI PO 2015]

1. 110
2. 125
3. 150
4. 200
5. 225

76. PM Narendra Modi launched Deen Dayal Upadhyaya Gram Jyoti Yojana in [SBI PO 2015]

1. Bengaluru
2. New Delhi
3. Patna
4. Varanasi
5. Bhopal

77. Female literacy rate according to 2011 census  [IBPS Clerk 2015]

1. 64.6%             ‘
2. 74.04%
3. 79%
4. 82.4%
5. 85.3%

78. PMSBY Scheme [IBPS Clerk 2015]

1. Educational Scheme
2. Housing Scheme
3. Rural Development Scheme
4. Pension Scheme
5. Accidental Insurance Cover Scheme

79. What is the deadline to achieve all villages electrification under Deen Dayal Upadhyaya Grammen Jyoti Yojana (DDUGJY)?
[RBI Grade B 2015]

1. March 31, 2016
2. October 2, 2016
3. March 31, 2017
4. October 2, 2017
5. March 31, 2018

80. The newly launched PMKSY scheme with an allocation of ? 50000 crore spread over a period of five years, aims to achieve a holistic development [RBI Grade B 2015]

1. rural housing
2. village infrastructure
3. health and sanitation
4. road and rail network
5. irrigation and potential

81. The HRIDAY scheme has been launched by the government of India in January, 2015 with the aim of holistic development of [RBI Grade B 2015]

1. IT/its outsourcing cities
2. special economic zones
3. heritage cities
4. industrial cities
5. medical tourism centres

82. Which of the following is a skill development scheme for minority youth? [RBI Grade B 2015]

1. Nai Manzil
2.  Swabhiman
3. Odisha
4. Jiyo Parsi
5. Other than those given as options

83. How many rural houses will cover under Housing to all by 2022?  [SBI PO 2016]

1. 1 crore
2. 2.5 crore
3. 2.9 crore
4. 8 crore
5. 3.9 crore

84. Skill development scheme is[SBI Clerk 2016]

1. PMKVY
2. PMRYI
3. PMSJY
4. PMSY
5. PMNY

85. NTH stands for [SBI Clerk 2016]

1. National Inter Transforming India
2. National Institution for Trend India
3. National Institution for Transforming India
4. National Inter Trend of India
5. New Institution for Transforming India

86. Scheme related to financial inclusion

1. Make in India [UBI PO 2016]
2. Swachh Bharat Abhiyan
3. Atal Pension Yojana
4. Pradhan Mantri Jan Dhan Yojana
5. Startup Standup India

Answer Key