Chapter Wise Economy MCQ’s With Explanation

Today’s Topic:Balance of Trade-2

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Today’s Topic:Balance of Trade-2

Q1. Consider the following statements:

1. National Insurance company limited was nationalized in the year 1972 and made a subsidiary of general insurance corporation of India.
2. Headquarters of United Indian insurance company limited are located at Chennai.
3. LIC is the oldest insurance company of India.
Which of the statements is are correct?
a) 1 and 2 Only          b) 2 and 3 Only            c) All of the above             d) Only 1
Ans: B
Explanation: Oriental life insurance company, Kolkata is the oldest insurance company in India (1818). Life insurance corporation was created in 1956. Headquarters of United Indian Insurance company limited are located at Chennai.

Q2. Match List-I and List-II

List – I                          List – II
A. Amrita Patel                  1. Advertising
B. Chandra Kochhar         2. Banking
C. Indra Nooyi                   3. Pepsico
D. Piyush Pandey             4. Dairy Development

a) 4 2 3 1
b) 1 2 3 4
c) 2 3 4 1
d) 2 3 1 4
Ans: A

Chandra Kochhar – Banking
Amrita Patel – Dairy Development
Indra Nooyi – Pepsico
Piyush Pandey – Advertising

Q3. Basel II relates to which of the following?

a) Measures against cyber crimes
b) International standards for safety in civil aviation
c) International standards for measuring the adequate of a bank’s capital/
d) Measures against drug abuse by sports persons.
Ans: C
Explanation: Basel II relates to international standards for measuring the adequacy of a Bank’s capital. It is the second of the Basel accords, which are recommendations on baking laws and regulations issued by the Basel committee on banking supervision. In India RBI has also implemented the Basel II norms. The Basel II accord 1998 has specified a three-tier capital structure for banks.

Q4. Consider the following statements regarding ‘Sarv Shiksha Abhiyan’

1. It was started in 2001-02
2. It provides primary education to all children age between (6-1 4) years.
3. Centre – state expenditure ratio is 65 : 35.
4. Centre – state expenditure ratio in north east state is 90 : 10
Choose correct option:
a) 1 & 2           b) 2 & 4             c) 1, 2, & 3           d) All of the above
Ans: D
Explanation: SSA is a programme which provides primary education of children whose age lies between (6 – 1 4) year. It was announced in 2000-01 and started in (2001-02). It is centre-state cooperation programme. Expenditure ratio between centre and state is 65 : 35 but in North – East state this ratio is 90: 10.

Q5. Which of the following statements regarding CAPART is Correct:

1. It was set up in Sep. 1986.
2. Its main office is in Mumbai.
3. It provides help for implementation of rural development programme
4. It has nine regional centers.
Choose correct options:
a) Only 3          b) 2 and 3          c) 1, 3 and 4         d) None of these
Ans: C
Explanation: CAPART it means council for advancement of people’s action and rural technology. It was set up in 1986 and main office is situated in New Delhi. It has nine regional center such as Jaipur, Lucknow, Ahemdabad, Hyderband, Guwahati and Dharwar. It provides help for implementation of rural development programme.

Q6. Which of the following statements regarding HDI is are correct:

1. Human development report published by UNDP.
2. It comprises three indices like Life expectancy, Income index, Education index.
3. It was introduced by Pakistani economist Mahboob Haq.
4. HDI is geometric mean of the Three indices
Choose correct option:
a) 1 & 2        b) 2 & 3             c) All of the above          d) Only 4
Explanation: Human Development report was started by the United nation development programme in 1990. It is based on the indices of economic development. The value of index lies between 0 to 1 the country whose index value is maximum that country get the highest position in human development. It is the geometric mean of the three indices like life expectancy, education index and income index.

Q7. Match the following list I and List II

List I                  List II
a. Koyambatur      1. Oil Refining
b. Raurkela           2. Rail Coach
c. Kapurthala        3. Steel Industry
d. Baroni               4. Cotton Industry

a) 4 3 2 1
b) 1 2 3 4
c) 2 3 4 1
d) 4 2 3 1
Ans: A
Explanation: a. Koyambatur Cotton Industry
b. Raurkela Steel Industry
c. Kapurthala Rail Coach
d. Baroni Oil Refining

Q8. Match the following List I and List II correctly

List I          List II
a. Singrauli      1. Oil
b. Kajarhat       2. Milk
c. Koyali           3. Coal
d. Anand          4. Cement

a) 1 2 3 4
b) 2 3 4 1
c) 3 4 1 2
d) 4 3 2 1
Ans: C
Explanation: a. Singrauli Coal
b. Kajarhat Cement
c. Koyali Oil
d. Anand Milk

Q9. Consider the following statements regarding the financial inclusion in India:

1. Nationalization Of banks
2. Adoption of villages by Bank Branches
3. Formation of regional Rural Banks
Choose the correct option:
a) 1 & 2       b) Only 2           c) All of the Above         d) 1 & 3
Ans: C
Explanation: All the above can be considered as steps taken to achieve the financial inclusion in India.
Nationalization targeted expansion of Bank branches in rural areas and also a control on concentration of economic powers in the hands of few. RRBs were planned to cater to the needs of the rural areas

Q10. Match List 1 and List 2

List-1                               List-2
a. Rose Revolution              1. Kyrgyzstam
b. Tulip Revolution               2. Georgain
c. Orange Revolution           3. Ukraine
d. Jasmine Revolution         4. Tunisia

a) 2 1 3 4
b) 3 2 1 4
c) 1 2 3 4
d) 1 3 2 4
Ans: A

The orange revolution occurred in Ukranie in 2004 as a result of allegation of fraud in the runoff presidential election
Jasmine Revolution Tunisia (2010)
Rose Revolution Georgian
Tulip Revolution Kyrgyzstan



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