Set of general knowledge questions on economics and Indian economy.

Candidates who are preparing for different examination these economics questions are very useful to know how well the preparation is going on. So here is set of 10 economics questions.

1.Increase in Bank Rate

(a) increases the cost of borrowing by commercial banks                                                      

 (b) declines the supply of money
(c) shows tightening of RBI monetary policy
(d) all the above

2.Which of the following benefits from inflation?
(a) Lender
(b) Borrower
(c) Both
(d) None

 3.Functions of RBI includes

(a)To regulate the issue of Bank notes and the keeping of reserve

(b)Securing monetary stability                                                                                                                 (c)Operate currency and credit system                                                                                                  (d)All of the above

4.The difference between revenue expenditure and revenue receipts is?

(a) Revenue deficit(b) Fiscal deficit (c) Budget deficit(d) Primary deficit

5.Which of the following is a union tax?
(a) Corporation tax
(b)Taxes on agricultural income
(c)Capitation taxes
(d)Land revenues

6.The difference between revenue deficit and grants for creation of capital assets is called

(a) Fiscal deficit
(b) Budget deficit
(c) Effective revenue deficit
(d) Primary deficit

7.Consider the following statements and identify the right ones.

  1. i.) Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.
    ii.) The constitution also provides for transferring certain tax revenues from union list to states.(a). i only
    (b). ii only                                                                                                                                        (c). both
    (d). none

8.Consider the following statements

1.The Index of Eight Core Industries (ICI) measures performance of eight infrastructure industries, viz Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity

2. It has the base year of 2004-05.

3. The Eight Core Industries comprise nearly 38 % of the weight of items included in the Index of Industrial Production (IIP).

Which of the above statements are correct?

a) 1,2
b) 1,3
c) 2,3
d) All

  1. Consider the following statements about priority sector lending

1).All banks have to lend at least 40% of their net credit to the priority sector
2.)Foreign banks with less than 20 branches will move to total priority sector target  of 40 percent by 2019-20.
Which of the above statements are correct?

a) Only 1
b) Only 2
c) Both
d) None

10.Consider the following statements related to GST bill

1. The Centre will have one third weight in the GST Council while the states will have the remaining two-thirds and decisions will have to be passed with 75% vote.

2. Petroleum and Alcohol is excluded from GST

Which of the above statements is/are correct?

a) Only 1
b) Only 2
c) Both
d) None

Answer  for economics questions set A

Ans1- (b) bank rate means the rate at which central bank lends money to the other banks so if there is increase in bank rate that means banks are getting loan from central bank at  high rate so there will be less money available to the banks. Hence money supply less.

Ans 2-(a) inflation means there is more money in the market so interest rate will be going down .hence lender will find it profitable.


Ans4- (b)

Ans5-(a) all other tax listed in question are implied by state government

Ans6-(c) revenue deficit means government spending or losing more then it’s earning but some of the spending is directed for the assets creation. So if we will deduce grants for capital creation from revenue deficit we will get effective revenue deficit.





All the economics questions listed above are prepared after a good research and basic in nature current and economic survey question will also be there keep following and all the best to all who are prepping for the examinations