Explanation: C. Luxemburg and Belgium are the two countries where 'Franc' is the currency having same value and is in free circulation.

Explanation: B. The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of 20 to 25 percent.

Explanation: B. Six industries which needs Industrial license: 1. Distillation and brewing of alcoholic drinks; 2. Cigars and cigarettes of tobacco and manufactured tobacco substitutes, Electronic, aeroplane and defence equipment; 4. Industrial explosives; 5. Hazardous chemicals and 6.Drugs and pharmaceuticals.

1. Currency with the Public
2. Demand deposits with banks
3. Time deposits with banks
4. Other deposits with RBI

Choose the correct answer using the codes given below:

Explanation: B. Broad money (M3) in India constitutes: Currency with public, Demand deposits with banks and time deposits with banks.

Explanation: B. Disinvestment in shares of Public SectorEnterprises- C. Rangarajan; Industrial sickness - Omkar Goswami; Tax reforms- Raja Chelliah; Reforms in Insurance sector- R.N. Malhotra.

Explanation: A. Commerce in Information Technology was one of the important agreements reached in 1996 Ministerial conference of WTO held in Singapore. Other important issues taken up were Labour standards, Investment and Competition in International trade and International trade of textiles.

Explanation: D. Components of HDI are: Health

Which one of the following is a valid conclusion?

Explanation: D. The composite index in showing rise from the 12th day but the MNCs are consistently declining in the given period. Therefore, the revival on the 12th day is relevant to non-MNCs only.

Explanation: B. Iron ore- Japan; Leather goods- Russia; Tea- U.K; Cotton fabrics- U.S.A.

Explanation: A. In India, Inflation in measured by the Wholesale Price Index (WPI) nuber which is computed by the Ministry of Commerce and Industry. However in 2015, Government of India put in place a mechanism through agreement on Monetary policy Framework under which CPI(combined) is to be targeted by the RBI between the range of 2% to 6% on the annual basis. Thus in place of WPI based inflation, the CPI-C inflation has been made the anchor rate of inflation for monetary policy purpose.

Explanation: C. Rashtriya Mahila Kosh

Explanation: B. Schemes of (i) Urban Micro-enterprises (ii) Urban Wage Employment and (iii) Housing and Shelter Upgradation are parts of 'Nehru Rojgar Yojana' which was started in the year 1989.

In the context of the above two statements, which one of the following is correct?

Explanation: A. Both A and R are true and R is the correct explanation of A. Socialist society is characterized by an equal opportunity and equality of status to all, removal of exploitation amelioration of the conditions of the weaker sections. Ideology of Socialism is just opposed to individualism and capitalism. It believes in Universalism and Globalism.

Explanation: A. Small scale sector has been contributing around 40% to the Gross turnover in the manufacturing sector since 1992. Its share in the total expots is 34%.

1. Subsidies
2. Interest payments
3. Defence expenditure
4. Maintenance expenditure for the infrastructure created in the previous plans

Choose the correct answer using the codes given below:

Explanation: D. Expenditure incurred on the non-developmental plans is called non-plan expenditure, which includes subsidies, interest payments, defence expenditure, maintenance expenditure for the infrastructure created in the previous plans etc.

Explanation: D. National income is the Net National Product at the factor cost. National Income can be defined as the money value of all final goods and services produced during a financial year in an economy. N.I. = NNP at factor cost = NNP at market price- Indirect taxes + subsidies

Explanation: D. The Minimum Alternative Tax (MAT) was introduced for the first time in the budget for the year 1996-97. MAT was introduced to curb the practice of some companies achieving zero tax status by paying out huge dividends, issuing bonus shares and efficient tax planning leading to their escaping the tax net. Kelkar Committee wants MAT abolished.

Explanation: C. White goods include items purchased for conspicuous specific consumption like T.V, A.c, Fridge, cooler, etc.

1. Britain is the most miserable country to live in.
2. The inflation rate in Spain is less than that in Belgium and Britain.
3. Italy and France seem to have almost identical unemployment rate.
4. The higher the misery index, the higher the inflation rate.

Select the correct answer using the codes given below: Codes:

Explanation: D. As per the question, Spain is the most miserable country. But no other definite conclusions can be made from the given options A, B, C.

Explanation: D. Europe is the region that supplies the maximum of our imported commodities (in terma of rupee value).

1. 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 Of these statements

Select the correct answer using the codes given below:

Explanation: B. The price of any currency in international market is determined by the demand for goods/services provided by the country and the stability of the government of the concerned country. World bank is a vital source of financial and technical assistance to developing countries around the world. It has no relation with price of currency in international market. Price of any currency is determined like price of any other commodity i.e. by forces of demand and supply. Demand for a currency is created by two factors, Its exports (other countries who want to buy) or the investments (people want to make in that currency). Stability is also an important factor as unstable government may hamper trade and investment.

Explanation: A. A consumer is said to be in equilibrium, if he is able to fulfil his need with a given level of income. It is the state of balance achieved by an end user of products. It refers to the amount of goods and services they can purchase given their present level of income and the current level of prices. Consumer equilibrium allows a consumer to obtain the most satisfaction possible from their income. Hence the answer is (A).

Explanation: A. Supply-side economics lays greater emphasis on the point of view of the producer whereas the demand side economics lays emphasis on the interest of the consumer.

Explanation: B. Both Assertion and Reason are individually correct, but Reason doesn

Explanation: B. According to Meadows (1992), the Limits to Growth on our planet will be reached in the next 100 years. The Limits to Growth is a 1972 book about the computer simulation that talks of exponential economic and population growth with finite resources supplies.

Explanation: D. 1997.

1. Dow Jones : New York
2. Hang Seng : Seoul
3. FTSE 100 : London

Select the correct answer using the codes given below:

Explanation: D. Dow Jones, Hang SAeng and FTSE-100 are the stock exchanges of New York, Hong Kong and London respectively.

Explanation: C. The Current Price Index (base 1960) is nearly 330. This means that weighted mean of prices of certain items has increased 3.3 times.

Explanation: B. The Statutory Liquidity Ratio (SLR) is the ratio (fixed by the RBI) that Bank has to maintain between their cash in hand and total assets. It may be kept in the form of cash, gold and government securities. SLR is fixed by the RBI through its monetary policy.

Explanation: B. The accounting year of the Reserve Bank of India is July-June.

Explanation: A. The decreasing order of the given currencies in tems of their value in Indian Rupees is US dollar, Canadian dollar, New Zealand dollar and Hong Kong dollar.

Explanation: C. Eco mark is given to the Indian products that are environment friendly. The certification mark is issued by the Bureau of Indian Standards (BIS). This marking scheme started in 1991 to increase awareness among the consumers towards reducing adverse impact on the environment.

Explanation: C. The capital Account Convertibility of the Indian Rupee implies that the Indian rupee can be exchanged for any major currency for the purpose of trading financial assets. India presently does not have full capital account convertibility. If the Indian rupee can be exchanged for any major currency for the purpose of trade in goods and service, it is called current account convertibility on Indian rupee.

Explanation: A. AK Sen was associated with the WTO draft document. He is an Indian economist who was awarded Nobel Prize in 1998 Economic Science for his contribution to welfare economies and social choice theory and for his interest in the problems of society

Explanation: C. Economic Survey in India is presented every year in the parliament by the Department of Economic Affairs, Ministry of Finance, Government of India.

Explanation: C. White goods include items purchased for conspicuous specific consumption like T.V, A.c, Fridge, cooler, etc.

1. Britain is the most miserable country to live in.
2. The inflation rate in Spain is less than that in Belgium and Britain.
3. Italy and France seem to have almost identical unemployment rate.
4. The higher the misery index, the higher the inflation rate.

Select the correct answer using the codes given below: Codes:

Explanation: D. As per the question, Spain is the most miserable country. But no other definite conclusions can be made from the given options A, B, C.

Explanation: D. Europe is the region that supplies the maximum of our imported commodities (in terma of rupee value).

1. 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 Of these statements

Select the correct answer using the codes given below:

Explanation: B. The price of any currency in international market is determined by the demand for goods/services provided by the country and the stability of the government of the concerned country. World bank is a vital source of financial and technical assistance to developing countries around the world. It has no relation with price of currency in international market. Price of any currency is determined like price of any other commodity i.e. by forces of demand and supply. Demand for a currency is created by two factors, Its exports (other countries who want to buy) or the investments (people want to make in that currency). Stability is also an important factor as unstable government may hamper trade and investment.

Explanation: A. A consumer is said to be in equilibrium, if he is able to fulfil his need with a given level of income. It is the state of balance achieved by an end user of products. It refers to the amount of goods and services they can purchase given their present level of income and the current level of prices. Consumer equilibrium allows a consumer to obtain the most satisfaction possible from their income. Hence the answer is (A).

Explanation: A. Supply-side economics lays greater emphasis on the point of view of the producer whereas the demand side economics lays emphasis on the interest of the consumer.

Explanation: B. Both Assertion and Reason are individually correct, but Reason doesn't explain the Assertion. USA wants developing countries to follow ILO conventions in order to fulfil its own economics self-interest. USA thinks that developing countries with low labour standards can get unfair advantage over it in international market making the products of developing countries more competitive vis-

Explanation: B. According to Meadows (1992), the Limits to Growth on our planet will be reached in the next 100 years. The Limits to Growth is a 1972 book about the computer simulation that talks of exponential economic and population growth with finite resources supplies.

Explanation: D. 1997.

1. Dow Jones : New York
2. Hang Seng : Seoul
3. FTSE 100 : London

Select the correct answer using the codes given below:

Explanation: D. Dow Jones, Hang SAeng and FTSE-100 are the stock exchanges of New York, Hong Kong and London respectively.

Explanation: C. The Current Price Index (base 1960) is nearly 330. This means that weighted mean of prices of certain items has increased 3.3 times.

Explanation: B. The Statutory Liquidity Ratio (SLR) is the ratio (fixed by the RBI) that Bank has to maintain between their cash in hand and total assets. It may be kept in the form of cash, gold and government securities. SLR is fixed by the RBI through its monetary policy.

Explanation: B. The accounting year of the Reserve Bank of India is July-June.

Explanation: A. The decreasing order of the given currencies in tems of their value in Indian Rupees is US dollar, Canadian dollar, New Zealand dollar and Hong Kong dollar.

Explanation: C. Eco mark is given to the Indian products that are environment friendly. The certification mark is issued by the Bureau of Indian Standards (BIS). This marking scheme started in 1991 to increase awareness among the consumers towards reducing adverse impact on the environment.

Explanation: C. The capital Account Convertibility of the Indian Rupee implies that the Indian rupee can be exchanged for any major currency for the purpose of trading financial assets. India presently does not have full capital account convertibility. If the Indian rupee can be exchanged for any major currency for the purpose of trade in goods and service, it is called current account convertibility on Indian rupee.

Explanation: A. AK Sen was associated with the WTO draft document. He is an Indian economist who was awarded Nobel Prize in 1998 Economic Science for his contribution to welfare economies and social choice theory and for his interest in the problems of society

Explanation: C. Economic Survey in India is presented every year in the parliament by the Department of Economic Affairs, Ministry of Finance, Government of India.

Explanation: C. In an open economy national income would be: Y=C+I+G(X-M): where, Y+ National Income; C= Consumption expenditure; I= Investment expenditure; G=Government expenditure; X= Export; M= Import.

Explanation: B. According to Global Competitive Report published by world Economic Forum in 1999, Singapore occupies the first place.

Explanation: C. A rise in SENSEX means an overall rise in prices of shares of group of companies registered with Bobay stock Exchange.

Explanation: C. The new GDP series released by the CSO in Febraury, 1999 is with reference to base of 1993-94.

Codes:

Explanation: A.

Explanation: D. In 1867-68, for the first time Dadabhai Naoroji had ascertained the Per Capita Income in his book 'Poverty and Un-British Rule in India.

Explanation: D. The National Human Development Report 2001, is an attempt to map the state of human development, and the related economic, educational and health attainments, the report analyses governance for human development. To facilitate monitoring, many process indicators have been created. The Human Development Index, Disparity Index and Human Poverty Index have been calculated for India after modifying the UNDP methodology.

Explanation: C. According to given data, infant mortality rate is both high and low.

Explanation: C. Human Development in a country depends on life expectancy of the individual and standard of living of the population. Among Asian countries Korea is the best performer in human development index. Its infant mortality rate is 6 and literacy rate is 98%.

Codes:

Explanation: A.

The above passage relates to

Explanation: B. The above given passage relates to the community Development Programme. This programme was started in 1952. All over development of rural areas was the prime objective of this programme.

Explanation: B. Gilt-edged securities are the government securities traded on the stock exchange. They are called gilt-edged because it is certain that interest will be paid and they will be redeemed on the due date. They are considered as safe investments.

Explanation: C. The Madhya Pradesh Human Development Report was the first sub-national human development in the world. It was released in 1995. Prof. Amartya Sen released the MPHDR second edition in 1999.

Explanation: A. Economic liberalization in India started with the industrial de-licensing, foreign investment, public sector related policy and policy related to the foreign technology. However option (A) is the closest answer of the above question.

Explanation: D. The Swarna Jayanti Shahari Rozgar Yojana which became operational on 1st December, 1997 provides gainful employment to the urban enemployed and underemployed poor through encouraging the setting up of self-employment ventures or provisions of wage employment. It includes Nehru Rozgar Yojana, Urban Basic Service for poor, Prime Minister Integrated Urban poverty Eradication Programme.

1. in respect of Current Account of Balance of Payment.
2. in respect of Capital Account of Balance of Payment.
3. into gold.

Which of these statements is/are correct?

Explanation: A. The Indian rupee is fully convertible in respect of Current Account of the Balance of Payment. Tarapore Committee has given the recommendation for full convertibility of rupee.

Explanation: B. Resurgent India bonds were issued in US Dollar, Pound Sterling and Deutsche Mark. State Bank of India had issued the Resurgent India Bond for Non-Resident Indian in the foreign Currencies.

1. labourrelated issues.
2. environment related issues.
3. terrorism related issues.
4. debtrelated issues.

Which of these statements are correct?

Explanation: B. The Ministerial meeting of WTO held in Seattle in December, 1999 was unsuccessful because it attempted to link trade with the labour and environment related issues.

Explanation: D. Per capita real income is nothing but NNP at factor cost. It means national income is sum total of all factor incomes adjusted for increase in prices.

Codes:

Explanation: A. Revenue deficit = revenue receipts

1. Corporation tax
2. Customs duty
3. Wealth tax
4. Excise duty

Which of these is/are indirect taxes?

Explanation: B. Indirect taxes are the charges that are levied on goods and services. Some of the significant indirect taxes include Value Added Tax, Central Sales Tax, Central Excise Duty, Customs Duty, stamp duties and expenditure tax. Property tax, Corporation tax and Wealth tax are examples of direct taxes.

Explanation: C. Gross national product at market price minus depreciation minus indirect tax plus subsidies.

Explanation: C.

Explanation: B. Procurement price is the support price at which the government will buy whatever quantum farmers wants to sell to the government in the event of private traders not buying the product. This is done to give a fair price to the farmer and to create a buffer stock of food grains to meet public distribution system requirements.

1. Market borrowing
2. Treasury bills
3. Special securities issued to RBI

Which of these is/are components(s) of internal debt?

Explanation: D. Internal debt is that part of the total debt that is owed to lenders within the country. Market borrowings, Treasury bills and special securities issued to RBI are all sources of internal borrowings.

Explanation: D. In the given bar diagram the annual production of "Rice" for the period 1991

Explanation: A. The only negative factor is the time difference which causes large employee turnover as most IT work is conducted during night shift.

1. Gujarat
2. Karnataka
3. Maharashtra
4. Tamil Nadu

The descending order of these states with reference to their level of Per Capita Net State Domestic Product is:

Explanation: B. Maharasthra>Gujarat>Karnataka>Tamil Nadu

1. It is a banker to the Central Government
2. It formulates and administers monetary policy
3. It acts as an agent of the Government in respect of India
4. It handles the borrowing programme of Government of India

Which of these statements are correct?

Explanation: C. Functions of RBI: sole authority to issue currency; government's bank; banker's bank; guardian of money market; lender of the last resort; sole reservoir of Foreign exchange reserves; controller of credit; clearing house for settling inter bank transactions. It follows an independent monetary policy.