Chapter Wise Economy MCQ’s With Explanation

Today’s Topic: Social Plans-2

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Today’s Topic: Social Plans 2


Q1. The Baks are required to maintain certain ratio between their cash in hand and assets. This is known as:

a) SBR (Statutory Bank Ratio)             b) SLR (Statutory Liquid Ratio)
c) CLR (Central Liquid Ration)             d) None of these.
Ans: B
Explanation: The Banks are required to maintain a certain ratio between their cash in hand and total assets. This is called statutory liquidity ratio. SLR is fixe by the Reserve bank of India through its monetary policy.

Q2. Which of the following come under non-plan expenditure?

1) Interest payments          2) Defence expenditure               3) Subsidies
4) Maintenance expenditure for the infrastructure created in the previous plan
a) 1, 2, 3 and 4      b) 1 and 2         c) 1, 2 and 3        d) None of these
Ans: A
Explanation: The expenditure of government which incurred on the non-development are called non-plan expenditure as like subsidies, interest payments and defence expenditure.

Q3. Scheme of (i) Urban Micro enterprises (ii) Urban wage employments and (iii) Housing and shelter up gradation are parts of:

a) Prime Minister Rozgar Youjana     b) Jawahar Rozgar Yojana
c) Nehru Rozgar Yojana                    d) None of these
Ans: C
Explanation: Nehru Rozgar Yojana was started from Oct, 1989. This yojana has three micro schemes.
1. Scheme of Urban Micro enterprises
2. Scheme of Housing and Shelter up gradation
3. Urban wage employments

Q4. The sum of which of following constitutes broad money in India?

1. Other deposit with RBI        2. Demand deposit with banks
3. Currency with the public      4. Time deposit with banks
Choose the correct answer using the codes given below.
a) 1 and 2         b) 1, 2, 3 and 4           c) 1, 2 and 3         d) 1, 4 and 2
Ans: D
Explanation: Broad money (m3) in India includes:
1. Currency with public 2. Demand of deposit with bank
3. Time deposit with banks

Q5. Which of the following were aimed behind the setting up of the world trade organization (WTO)?

1. Protection of intellectual property rights.
2. Permission of free trade and resource flows across the countries.
3. Permission of free trade between the former East block countries and western world.
4. Managing balancing trade between different countries.
a) 2 and 3         b) 1, 2 and 3        c) 1, 2 and 4       d) 1, 2, 3 and 4
Ans: D
Explanation: WTO as contained in the final act was established on 1st Jan, 1995 the main defective of WTO was to promote free trade between the countries, protection of intellectual property rights.

Q6. Assertion (A): An important policy instruments of economic liberalization is reduction in import duties on capital good:
Reason (R): Reduction in import duties would help the local entrepreneurs to improve technology to face the global market.

a) Both A and R correct but R is not correct explanation of A
b) Both A and B correct and R is the correct explanation of A
c) Both false
d) A true but R false
Ans: B
Explanation: To fight global competition in foreign trade enterprises should have global technology, which is possible by import of the capital goods from international market.

Q7. The main reason for low growth rate is India, inspire of high rate of savings and capital formation is:

a) Low capital/output ratio              b) High birth rate
c) High capital/output ratio             d) None of these
Ans: C
Explanation: The main reason for low growth rate in India inspire of high rate of saving and capital formation is high capital output ratio. Capital output is ratio that show the units of capital required to produce a net output over a given period of time.

Q8. Which of the following benefits were likely to occur to India from the world Trade Organization (WTO)?

1. India’s share in the world trade was likely to triple by the year 2000 A D
2. It will help boost exports of agricultural commodities from India
3. India shared in WTO is to go up from the present 600 million US dollar to 500 million US dollars by 2000 AD
a) 1, 2 and 3        b) 1 and 2           c) 3 and 1            d) None of these
Ans: B
Explanation: The world trade organization helps to boost export of agricultural commodities from India and India shared in WTO was likely to triple by the year 2000 AD

Q9. Which one of the following is tire regarding the Jawahar Rozgar Yojana?

a) The target group of JRY is the urban poor living below the poverty line.
b) It was launched during the prime miistership of Indira Gandhi.
c) It aims at creating one million jobs annually
d) None of these
Ans: D
Explanation: Under Jawar Rozgar Yojana (JRY) 30% of the employment generated is reserved for women. It was started in 1984-90 to provides employment opportunities for rural power and develop basic infrastructure of rural areas.

Q10. Which one of the following is not a Instrument of selective credit control in India?

a) Vairable costs resever ratio           b) Regulation of consumer credits
c) Margin requirement                       d) None of these
Ans: A
Explanation: Regulation of consumer credit, rationing of Credit, aid margin requirement are instruments of selective credit control against the bank rate, reserve ratio and open market operation are included in quantitative credit control system monetary policy.


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