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1. In the context of Independent India’s economy, which one of the following was the earliest event to take place?

a) Nationalization of Insurance companies

b) Nationalization of State Bank of India

c) Enactment of Banking of India

d) Introduction of the First Five Year Plan

Ans: C

2. A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like the UK and France. Why?

a) India has a preference for certain countries as regards receiving FDI

b) India has double taxation avoidance agreement with Mauritius

c) Most citizens of Mauritius have an ethnic identity with India and so they felt secure to invest in India.

d) Impending dangers of global climatic change prompt Mauritius to make a huge investment in India.

Ans: C

3. Consider the following countries:

1) Brazil

2) Mexico

3) South Africa

According to UNCTAD, which of the above is/are categorized as “emerging economics”?

a) 1 only

b) 1 and 3 only

c) 2 and 3 only

d) 1, 2 and 3

Ans: B

4. In the context of Indian economy, consider the following pairs:

Term                     Most appropriate description

1) Meltdown         Fall in stock prices

2) Recession        Fall in growth rate

3) Slow down       Fall in GDP

Which of the pairs given above is/are correctly matched?

a) 1 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2 and 3

Ans: D

5. In India, which of the following is regulated by the Forward Markets Commission?

a) Currency Futures Trading

b) Commodities Futures Trading

c) Equity Futures Trading

d) Both commodities futures trading and financial futures trading.

Ans: B

6. A “closed economy” is an economy in which:

a) The money supply is fully controlled

b) Deficit financing takes place

c) Only exports take place

d) Neither exports nor imports take place.

Ans: D

7. Consider the following statements:

1) The first telegraph line in India was laid between Kolkata (formerly Calcutta) and Dimond Harbour.

2) The first Export Processing zone in India was set up in Kandla.

Which of the statement(s) given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Ans: C