PET Practice Set 9

The Reserve Bank of India was established in:

1. A.1935✓
2. B.1947
3. C.1949
4. D.1950

Correct answer: A

The Reserve Bank of India was nationalized in:

1. A.1935
2. B.1947
3. C.1949✓
4. D.1951

Correct answer: C

The rate at which commercial banks borrow money from the RBI is called:

1. A.Bank Rate
2. B.Repo Rate✓
3. C.Reverse Repo Rate
4. D.PLR

Correct answer: B

The rate at which RBI borrows money from commercial banks is called:

1. A.Bank Rate
2. B.Repo Rate
3. C.Reverse Repo Rate✓
4. D.CRR

Correct answer: C

Cash Reserve Ratio (CRR) is the percentage of deposits that banks must keep with:

1. A.The Government
2. B.The Reserve Bank of India✓
3. C.Other commercial banks
4. D.The Finance Ministry

Correct answer: B

Which of the following is NOT a function of the Reserve Bank of India?

1. A.Issuing currency notes
2. B.Acting as banker to the government
3. C.Collecting income tax✓
4. D.Regulating credit in the economy

Correct answer: C

Nationalization of major commercial banks first took place in India in:

1. A.1955
2. B.1969✓
3. C.1971
4. D.1980

Correct answer: B

How many banks were nationalized in 1969?

1. A.10
2. B.12
3. C.14✓
4. D.16

Correct answer: C

GDP stands for:

1. A.Gross Domestic Price
2. B.Gross Domestic Product✓
3. C.General Domestic Product
4. D.Gross Demand Product

Correct answer: B

The base year currently used for calculating India's GDP is:

1. A.2004-05
2. B.2011-12✓
3. C.2015-16
4. D.2000-01

Correct answer: B

Consumer Price Index (CPI) measures:

1. A.Industrial production
2. B.Wholesale prices
3. C.Retail price changes faced by consumers✓
4. D.Stock market performance

Correct answer: C

Inflation refers to:

1. A.A sustained decrease in the general price level
2. B.A sustained increase in the general price level✓
3. C.Increase in money supply only
4. D.Decrease in production

Correct answer: B

Deflation is:

1. A.Rise in general price level
2. B.Fall in general price level✓
3. C.Rise in production
4. D.Fall in exports

Correct answer: B

National Income of India is calculated by:

1. A.Planning Commission
2. B.Finance Commission
3. C.Central Statistical Organisation (CSO/NSO)✓
4. D.Reserve Bank of India

Correct answer: C

The New Economic Policy (LPG reforms) was introduced in India in:

1. A.1985
2. B.1990
3. C.1991✓
4. D.1995

Correct answer: C

LPG in economic reforms stands for:

1. A.Liquidation, Privatization, Globalization
2. B.Liberalization, Privatization, Globalization✓
3. C.Liberalization, Production, Globalization
4. D.Liquidation, Production, Growth

Correct answer: B

GST (Goods and Services Tax) was implemented in India from:

1. A.1 April 2016
2. B.1 July 2017✓
3. C.1 January 2018
4. D.1 April 2017

Correct answer: B

GST is levied under which Constitutional Amendment?

1. A.100th Amendment
2. B.101st Amendment✓
3. C.102nd Amendment
4. D.99th Amendment

Correct answer: B

Which of the following is a direct tax?

1. A.GST
2. B.Excise Duty
3. C.Income Tax✓
4. D.Customs Duty

Correct answer: C

The GST Council is chaired by:

1. A.Prime Minister
2. B.RBI Governor
3. C.Union Finance Minister✓
4. D.Chief Justice of India

Correct answer: C

The Pradhan Mantri Jan Dhan Yojana was launched in:

1. A.2013
2. B.2014✓
3. C.2015
4. D.2016

Correct answer: B

MGNREGA guarantees how many days of employment in a year?

1. A.50 days
2. B.100 days✓
3. C.150 days
4. D.200 days

Correct answer: B

Under the PM Kisan Samman Nidhi scheme, eligible farmers receive per year:

1. A.Rs. 2,000
2. B.Rs. 4,000
3. C.Rs. 6,000✓
4. D.Rs. 10,000

Correct answer: C

Pradhan Mantri Ujjwala Yojana is related to:

1. A.Providing electricity to rural areas
2. B.Providing free LPG connections to BPL families✓
3. C.Building toilets in rural areas
4. D.Providing drinking water

Correct answer: B

Ayushman Bharat (PM-JAY) provides health coverage up to:

1. A.Rs. 1 lakh per family
2. B.Rs. 3 lakh per family
3. C.Rs. 5 lakh per family per year✓
4. D.Rs. 10 lakh per family

Correct answer: C

Fiscal deficit is defined as:

1. A.Total revenue minus total expenditure
2. B.Total expenditure minus total receipts excluding borrowings✓
3. C.Revenue expenditure minus revenue receipts
4. D.Capital expenditure minus capital receipts

Correct answer: B

The Union Budget of India is presented on:

1. A.Last day of January
2. B.1st February✓
3. C.28th February
4. D.1st March

Correct answer: B

The Annual Financial Statement (Union Budget) is dealt with under which Article?

1. A.Article 110
2. B.Article 112✓
3. C.Article 114
4. D.Article 266

Correct answer: B

Revenue deficit occurs when:

1. A.Capital expenditure exceeds capital receipts
2. B.Revenue expenditure exceeds revenue receipts✓
3. C.Total expenditure exceeds total revenue
4. D.Imports exceed exports

Correct answer: B

The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in:

1. A.1991
2. B.2000
3. C.2003✓
4. D.2008

Correct answer: C