1. The Multi-dimensional Poverty Index developed by Oxford Poverty
and Human Development Initiative with UNDP support covers which of
the following?
1. Deprivation of education, health, assets and services at household
level
2. Purchasing power parity at national level
3. Extent of budget deficit and GDP growth rate at national level
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans. (a)
Explanation:
The multi-dimensional poverty index (MPI) bases its estimation on
education (years of schooling and attendance in schools), health (child
mortality and nutrition) and standard of living (electricity, sanitation,
drinking water, flooring of the house, cooking fuel and asset ownership).
Equal weights are assignments to the three lead factors such that the
weights are proportionately split among the sub-factors.
2. Consider the following specific stages of demographic transition
associated with economic development
1. Low birth rate with low death rate
2. High birth rate with high death rate
3. High birth rate with low death rate
Select the correct order of the above stages using the codes given below:
(a) 1, 2, 3
(b) 2, 1, 3
(c) 2, 3, 1
(d) 3, 2, 1
Ans. (c)
Explanation:
Countries are initially characterized with high birth rate and high death
rate as there are not enough health facilities available, the population is
unaware of the health and hygiene practices to be followed. As
development happens, improvements in hygiene, sanitation, food
availability reduces the death rate. This is the phase when population
growth quickens. With further development, education and literacy, the
population is apprised of family planning and contraception which checks
the birth rate as well.
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3. Which of the following can aid in furthering the Government’s
objective of inclusive growth?
1. Promoting Self-Help Groups
2. Promoting Micro, Small and Medium Enterprises
3. Implementing the Right to Education Act
Select the correct answer using the codes given below:
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Ans. (d)
Explanation:
The concept of inclusive growth is based on both economic and social
empowerment of ordinary and under privileged individuals. Thus all the
statements are correct.
4. With reference to the National Rural Health Mission, which of the
following are the jobs of ‘ASHA’, a trained community health worker?
1. Accompanying women to the health facility for antenatal care
checkup
2. Using pregnancy test kits for early detection of pregnancy
3. Providing information on nutrition and immunization
4. Conducting the delivery of baby
Select the correct answer using the codes given below:
(a) 1, 2 and 3 only
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 2, 3 and 4
Ans. (a)
Explanation:
Self explanatory
5. The endeavour of ‘Janani Suraksha Yojana’ Programme is
1. to promote institutional deliveries
2. to provide monetary assistance to the mother to meet the cost of
delivery.
3. to provide for wage loss due to pregnancy and confinement
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
Ans. (a)
Explanation:
The endeavour of Janani Suraksha Yojana programme are : (i) to promote
institutional deliveries (ii) to provide monetary assistance to the mother
to meet the cost of delivery.
6. How does the National Rural Livelihood Mission seek to improve
livelihood options of rural poor?
1. By setting up a large number of new manufacturing industries and
agribusiness centres in rural areas
2. By strengthening ‘self-help groups’ and providing skill
development
3. By supplying seeds, fertilizers, diesel pump-sets and
micro-irrigation equipment free of cost to farmers
Select the correct answer using the codes given below:
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans. (b)
Explanation:
National Rural Livelihood Mission (NRLM) is a poverty alleviation
project implemented by the Ministry of Rural Development, Government
of India. This scheme is focused on promoting self-employment and
organization of rural poor. The basic idea behind this programme is to
organize the poor into SHG (Self Help Groups) groups and make them
capable of self-employment.
7. Consider the following:
1. Hotels and restaurants
2. Motor transport undertakings
3. Newspaper establishments
4. Private medical institutions
The employees of which of the above can have the `Social Security’
coverage under Employees’ State Insurance Scheme?
(a) 1, 2 and 3 only
(b) 4 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4
Ans. (d)
Explanation:
In March 1943, B. P. Adarkar was appointed by Government of India to
create a report on health insurance scheme for industrial workers. The
report became the basis for the Employment State Insurance (ESI) Act of
1948
The act was initially intended for factory workers but later became
applicable to all establishments having 10 or more workers. As on 31
March 2016, the total beneficiaries are 82.8 million.
8. How do District Rural Development Agencies (DRDAs) help in the
reduction of rural poverty in India?
1. DRDAs act as Panchayati Raj Institutions in certain Specified
backward regions of the country.
2. DRDAs undertake area-specific scientific study of the causes of
poverty and malnutrition and prepare detailed remedial measures.
3. DRDAs secure inter-sectoral and inter-departmental coordination
and cooperation for effective implementation of anti-poverty
programmes.
4. DRDAs watch over and ensure effective utilization of the funds
intended for anti-poverty programmes
Which of the statements given above is/are correct?
(a) 1, 2 and 3 only
(b) 3 and 4 only
(c) 4 only
(d) 1, 2, 3 and 4
Ans. (a)
Explanation:
All the statements are self explanatory
9. The Reserve Bank of India (RBI) acts as a bankers’ bank.
This would imply which of the following?
1. Other banks retain their deposits with the RBI.
2. The RBI lends funds to the commercial banks in times of need.
3. The RBI advises the commercial banks on monetary matters.
Select the correct answer using the codes given below:
(a) 2, and 3 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans. (b)
Explanation:
The Reserve Bank of India acts as a lender of last resort and a bankers’
bank. It provides credit to banks in times of need and other banks retain
their deposits with the RBI. Although RBI time and again gives its views
on the health of the banking sector and takes measures to strengthen it, it
does not really advise the commercial banks on monetary matters.
10. Under which of the following circumstances may ‘capital gains arise?
1. When there is an increase in the sales of a product
2. When there is a natural increase in the value of the property owned
3. When you purchase a painting and there is a growth in its value due
to increase in its popularity
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
Ans. (b)
Explanation:
Capital gains are profits from the sale of a capital asset, such as shares of
stock, a business, a parcel of land, or a work of art. A capital gain is
realized when a capital asset is sold or exchanged at a price higher than its
basis (an asset’s purchase price, plus commissions and the cost of
improvements, minus depreciation). Similarly, a capital loss occurs when
an asset is sold for less than its basis. Gains and losses (like other forms
of capital income and expense) are all measured in nominal terms—that
is, not adjusted for inflation.
11. Which of the following measures would result in an increase in the
money supply in the economy?
1. Purchase of government securities from the public by the Central
Bank
2. Deposit of currency in commercial banks by the public
3. Borrowing by the government from the Central Bank
4. Sale of government securities to the public by the Central Bank
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 4 only
(c) 1 and 3
(d) 2, 3 and 4
Ans. (c)
Explanation:
Money supply increases when money flows out of the RBI. Purchase of
Govt securities from the public by the Central bank leads to transfer of
money to the public thereby leading to increase in money supply in the
economy. Similarly, borrowing by the government from the Central bank
leads to increased money supply.
However, deposit of currency in commercial banks by the public doesn’t
lead to increase in money supply as the money just gets transferred from
public to commercial banks.
12. Consider the following statements: The price of any currency in
international decided by the World Bank
1. Demand for goods/services provided by the country concerned
2. Stability of the government of the concerned country
3. Economic potential of the country in question
Which of the statements given above are correct?
(a) 1, 2, 3 and 4
(b) 2 and 3 only
(c) 3 and 4 only
(d) 1 and 4 only
Ans. (b)
Explanation:
Price of any currency in the international market is determined by the
demand for goods/services produced by the country. If the demand for the
product is high then the currency would be strong. The current
depreciation of the Indian Rupee is due to rising oil prices. The stability
of the government of the concerned country has no role to play in
determining the prices of a currency.
13. The basic aim of Lead Bank Scheme is that
(a) big banks should try to open offices in each district
(b) there should be stiff competition among the various nationalized banks
(c) individual banks should adopt particular districts for intensive
development
(d) all the banks should make intensive efforts to mobilize deposits
Ans. (c)
Explanation:
The basic aim of Lead Bank Scheme is that there should be stiff
competition among the various nationalized banks and big banks should
try to open offices in each district.
14. Which of the following can be said to be essentially the parts of
‘Inclusive Governance”?
1. Permitting the Non-Banking Financial Companies to do banking
2. Establishing effective District Planning Committees in all the
districts
3. Increasing the government spending on public health
4. Strengthening the Mid-day Meal Scheme
Select the correct answer using the codes given below:
(a) 1 and 2 only
(b) 3 and 4 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
Ans. (d)
Explanation:
All the statements are self explanatory.
15. Which of the following would include Foreign Direct Investment in
India?
1. Subsidiaries of foreign companies in India
2. Majority foreign equity holding in Indian companies
3. Companies exclusively financed by foreign companies
4. Portfolio investment
Select the correct answer using the codes given below:
(a) 1, 2, 3 and 4
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 2 and 3 only
Ans. (d)
Explanation:
Portfolio investment doesn’t mean direct investment. It refers to
investment in the security markets in India.
Subsidiaries of a company come under Direct Investment. Majority equity
holding and exclusively financing a company in India leads to getting
some control in management or taking part in operations and is thus
Direct Investment.
16. Consider the following statements:
1. The price of any currency in the international market is decided by
the World Bank.
2. Demand for goods/services provided by the country concerned
3. Stability of the government of the concerned country
4. Economic potential of the country in question.
Select the correct answer using the codes below:
(a) 1, 2, 3 and 4 are correct
(b) 2 and 3 are correct
(c) 3 and 4 are correct
(d) 1 and 4 are correct
Ans. (b)
Explanation:
Price of any currency in the international market is determined by the
demand for goods/services produced by the country. If the demand for the
product is high then the currency would be strong. The current
depreciation of the Indian Rupee is due to rising oil prices. The stability
of the government of the concerned country has no role to play in
determining the prices of a currency.
17. In India, in the overall Index of Industrial Production, the Indices of
Eight Core Industries have a combined weight of 37.90%. Which of the
following are among those Eight Core Industries?
1. Cement
2. Fertilizers
3. Natural Gas
4. Refinery products
5. Textiles
Select the correct answer using the codes given below
(a) 1 and 5 only
(b) 2, 3 and 4 only
(c) 1, 2, 3 and 4 only
(d) 1, 2, 3, 4 and 5
Ans. (d)
Explanation:
The eight core industries included are- Coal, Crude oil, Natural Gas,
Petroleum refinery products, Fertilizer, Cement, Steel, and Electricity
generation. These eight industries comprise 40.27% of the weight of the
items included in the Index of Industrial Production.
18. What is/are the recent policy initiative(s) of Government of India to
promote the growth of the manufacturing sector?
1. Setting up of National Investment and Manufacturing Zones
2. Providing the benefit of ‘single window clearance’
3. Establishing the Technology Acquisition and Development Fund.
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans. (d)
Explanation:
The National Institution for Transforming India (NITI Aayog), after its
recent push for Rs 6,000 crore (US$ 889 million) textile sector package,
aims to persuade the Government for similar support in the manufacturing
sectors with large-scale employment generation opportunities, such as
electrical and electronics engineering, footwear and light manufacturing
segments, which also have export potential.
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