PRACTICE SET 1

1. The financial year in India is
a. April 1 to March 31
b. January 1 to December 31
c. March 1 to April 30
d. March 16 to March 15

ANSWER: a. April 1 to March 31

National income is calculated for a specific period of time. In India, it is calculated for April 1 to March 31.

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

i. National income is the monetary value of all final goods and services produced.
ii. Depreciation is deducted from gross value to get the net value

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

National Income is the monetary value of all final goods and services that are produced by the residents of the country.

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

i. While calculating GDP, income generated by foreigners in a country is taken into consideration
ii. While calculating GDP, income generated by nationals of a country outside the country is taken into account

a. I only
b. ii only
c. both
d. none

ANSWER: a. I only

While calculating GDP, income generated by nationals of a country outside the country is not taken into account.

4. The net value of GDP after deducting depreciation from GDP is

a. Net national product
b. Net domestic product
c. Gross national product
d. Disposable income

ANSWER: b. Net domestic product

After deducting the depreciation charges of plant and machinery from GDP, we get net value of GDP which is called NDP.

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

i. While calculating GNP, income generated by foreigners in a country is taken into consideration
ii. While calculating GNP, income generated by nationals of a country outside the country is taken into account

a. I only
b. ii only
c. both
d. none

ANSWER: b. ii only

While calculating GNP, income generated by foreigners in a country is not taken into consideration.

6. When depreciation is deducted from GNP, the net value is

a. Net national product
b. Net domestic product
c. Gross national product
d. Disposable income

ANSWER: a. Net national product

NNP is the net value of GNP after the depreciation of plant and machinery is deducted.

7. The value of NNP at consumer point is

a. NNP at factor cost
b. NNP at market price
c. GNP at market price
d. GNP at factor cost

ANSWER: b. NNP at market price

NNP at market price is calculated by deducting indirect taxes and subsidies from NNP at factor cost.

8. The value of NNP at production point is called

a. NNP at factor cost
b. NNP at market price
c. GNP at market price
d. GNP at factor cost

ANSWER: b. NNP at market price

NNP at factor cost is the value of the NNP when the value of goods and services are taken at the production point.

9. The value of national income adjusted for inflation is called

a. Per capita income
b. Disposable income
c. Inflation rate
d. Real national income

ANSWER: d. Real national income

It is adjusted for inflation that is calculated from a reference point which is a base year.

10. The average income of the country is

a. Per capita income
b. Disposable income
c. Inflation rate
d. Real national income

ANSWER: a. Per capita income

Per capita income is calculated by dividing the total national income by the total population of the year.

11. The author of the book An Essay on Principles of Population is

a. Malthus
b. James Princep
c. Keynes
d. Frank Notenstein

ANSWER: a. Malthus

The theory of population is given by Malthus in this book. Frank Notenstein gave the theory of demographic transition.

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

i. According to the Malthusian theory, supply of food grains increase in geometric progression
ii. The population grows in arithmetic progression.

a. I only
b. ii only
c. both
d. none

ANSWER: d. none

According to the Malthusian theory, supply of food grains increase in arithmetic progression. The population grows in geometric progression.

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

i. Malthus supported population control to ensure balance between population and availability of food grains
ii. He advocated "unethical" means to control population

a. I only
b. ii only
c. both
d. none

ANSWER: a. I only

He advocated ethical means to control population like self control, late marriage etc. he was against methods like abortion.

14. The theory that says the level of population at which per capita income is maximum is

a. Theory of population by Malthus
b. Theory of optimum population
c. Theory of demographic transition
d. None of the below

ANSWER: b. Theory of optimum population

The theory that says the level of population at which per capita income is maximum is the Theory of optimum population.

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

i. According to the theory of demographic transition, in the first stage, birth rate is low but death rate is high
ii. The difference between them is high

a. I only
b. ii only
c. both
d. none

ANSWER: d. none

According to the theory of demographic transition, in the first stage, birth rate and death rate both are high and the difference between them is quite low.

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

i. In the second stage of demographic transition, death rates declines.
ii. The difference between birth rate and death rate decreases

a. I only
b. ii only
c. both
d. none

ANSWER: a. I only

In the second stage, there is negligible decline in the birth rate. Hence the difference between birth and death rate increases.

17. In which stage of demographic transition is the population growth rate highest?

a. First
b. Second
c. Third
d. Fourth

ANSWER: b. Second

In the second stage, there is negligible decline in the birth rate. Hence the difference between birth and death rate increases.

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

i. The third stage is the period of declining growth rates.
ii. The second stage of demographic transition witnesses population explosion

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

In the third stage of demographic transition, the population growth rate declines at a faster rate.

19. Match the following.

i. 1891-1921 ------------ a. period of stagnant population
ii. 1921-1951 ----------- b. period of steady growth
iii. 1951-1981 ---------- c. period of high growth
iv. 1981-2011 ----------- d. period of declining growth rate

a. Ia, iib, iiic, ivd
b. Ic, iib, iiia, ivd
c. Ib, iic, iiia, ivd
d. Ia, iib, iiid, ivc

ANSWER: a. Ia iib iiic ivd

This is the population trend in India from 1891 onwards. It has slowly moved towards the declining growth rate period.

20. Arrange the birthrates of the states in the highest to lowest order.

a. UP, Bihar, Rajasthan, Karnataka
b. Bihar, UP, Rajasthan, Karnataka
c. UP, Rajasthan, Bihar, Karnataka
d. UP, Bihar, Karnataka, Rajasthan

ANSWER: a. UP, Bihar, Rajasthan, Karnataka

The birthrate of UP is the highest with

21. Arrange the death rates of the states in the highest to lowest order.

a. Odisha, UP, MP, Assam
b. Odisha, MP, Assam, UP
c. MP, Odisha, UP, Assam
d. UP,MP, Odisha, Assam

ANSWER: b. Odisha, MP, Assam, UP

Odisha has the highest death rate of 8.5, MP with 8.2, Assam with 8 and UP with 7.9

22. The state with lowest death rate is

a. West Bengal
b. Haryana
c. Bihar
d. Kerala

ANSWER: a. West Bengal

Kerala has the death rate of 7. West Bengal has the death rate of 6.2, Haryana with 6.5 and Bihar with 6.7

23. The state with lowest birth rate is

a. West Bengal
b. Kerala
c. Karnataka
d. Assam

ANSWER: b. Kerala

Kerala has the lowest birth rate of 15.2, West Bengal with 6.2, Karnataka with 7.1 and Assam with 8.

24. Which five year plan stated the objective of stabilizing the population growth to be the central feature of planning?

a. First
b. Second
c. Third
d. Fourth

ANSWER: c. Third

Family planning was adopted as a measure to stabilize the population growth.

25. The Department of Family Planning was set up in

a. 1965
b. 1966
c. 1977
d. 1975

ANSWER: b. 1966

From third five year plan onwards, importance was given to family planning measures to stabilize the population growth.

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

i. Family planning was made target-oriented in the 1960s
ii. The period saw cafeteria approach

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

From third five year plan onwards, importance was given to family planning measures to stabilize the population growth.

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

i. The 4th five year plan aimed at reducing birth rate from 39 per thousand to 29 in next 10 years.
ii. There was emphasis on providing supplies and services.

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

The 4th five year plan aimed at reducing birth rate from 39 per thousand to 29 in next 10 years.

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

i. The National Population Policy was announced in 1976.
ii. Prior to this policy, family planning was voluntary

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

Prior to the 1976 Population policy, government was just acting as a facilitator and family planning was a voluntary act.

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

i. the 2000 population policy has a long term objective of achieving a stable population by 2015
ii. The National Population Policy aimed at achieving universal immunization of children against all vaccine preventable diseases.

a. I only
b. ii only
c. both
d. none

ANSWER: b. ii only

The 2000 population policy has a long term objective of achieving a stable population by 2045. The policy has immediate, medium term and long term goals.

30. Which of the following is/are immediate objective of the population policy of 2000?

a. meet the needs of contraception
b. meet the needs of health infrastructure
c. meet the needs of health personnel
d. all the above

ANSWER: d. all the above

Along with the above objectives, it also aims at providing integrated services for basic reproductive and child health care.

31. Which of the following is a method to measure relative poverty?

a. Gini coefficient
b. Lorenz curve
c. Both a and b
d. Poverty line

ANSWER: c. Both a and b

Relative poverty refers to income inequality where high income group as more share than low income group.

32. Which of the following is associated with poverty estimation ?

a. Tendulkar committee
b. Lakdawala committee
c. Saxena committee
d. All the above

ANSWER: d. All the above

All these committees have recommended various criteria and methods of poverty estimation.

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

i. Poverty line is defined as the mid-point of monthly per capita expenditure class having a daily calorie intake of 2400 calorie per person in urban areas.

ii. In rural areas, it is 2100 calories a day

a. I only
b. ii only
c. both
d. none

ANSWER: d. none

Poverty line is defined as the mid-point of monthly per capita expenditure class having a daily calorie intake of 2400 calorie per person in rural areas and for urban areas, it is 2100 calories.

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

i. The Tendulkar panel committee on poverty submitted its report in 2001

ii. As per the report, poverty estimates will be based on private household consumer expenditure of households

a. I only
b. ii only
c. both
d. none

ANSWER: b. ii only

The Tendulkar panel committee on poverty submitted its report in 2009. The data is collected by the NSSO.

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

i. As per the Tendulkar report, NSSO has decided to shift mixed reference period.

ii. Prior to this, 30 day recall period was used.

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

As per the report, it has been decided to use mixed reference period for all consumption surveys in future.

36. The Saxena Committee was constituted by

a. Ministry of Home Affairs
b. Ministry of Rural Development
c. Ministry of Economic Affairs
d. Ministry of Social Welfare

ANSWER: b. Ministry of Rural Development

This committee was set up by the Rural Development Ministry to suggest methods to suggest methods to identify BPL families in rural areas.

37. Which of the following is not included in the automatic exclusion as per the Saxena Committee?

a. Families having two wheelers
b. Families having minimum one mechanized farm equipment
c. Income tax payers
d. Families having a person who draws above 10000 rupees per month working in private organization

ANSWER: a. Families having two wheelers

A family having a person who draws above 10000 rupees per month working in private organization or government or NGO on a regular basis is excluded.

38. Which of the following is included in the automatic inclusion category?

a. Designated primitive tribal groups
b. Single women-headed households
c. Homeless households
d. All the above

ANSWER: d. All the above

Apart from these, maha Dalit groups, destitute households, households headed by minor etc are also included.

39. Which of the following is the nodal Ministry to identify BPL families in urban areas?

a. Ministry of Economic Affairs
b. Ministry of Social Welfare
c. Ministry of Housing and Poverty Alleviation
d. Ministry of Urban Development

ANSWER: c. Ministry of Housing and Poverty Alleviation

Ministry of Housing and Poverty Alleviation is the nodal Ministry to identify BPL families in urban areas.

40. The current weekly status of a person is calculated with a reference period of

a. 5 days
b. 6 days
c. 7 days
d. 4 weeks

ANSWER: c. 7 days

The current weekly status of a person is calculated with a reference period of 7 days.

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

i. JRY was implemented in 1989
ii. JRY worked on the principle of decentralization

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

The responsibility of implementing JRY rests with the village panchayats. Both NREP and RLEGP were merged to form JRY.

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

i. The short term objective of JRY is to provide 1 year wage employment to BPL families.
ii. The long term objective is to create community assets in rural areas.

a. I only
b. ii only
c. both
d. none

ANSWER: b. ii only

The short term objective of JRY is to provide 50 to 100 days of wage employment to BPL families.

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

i. SGSY was introduced in 1999 as a self employment programme.
ii. The cost of sharing between centre and the states is 50:50

a. I only
b. ii only
c. both
d. none

ANSWER: a. I only

SGSY aims at promoting micro enterprises and help the rural poor through Self Help Groups. The cost of sharing between centre and the states is 75:25

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

i. The MGNREGA provides at least 100 days of guaranteed wage employment in a year.
ii. The scheme mandates for 1/3rd participation for women

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

MGNREGA came into effect in 2006 in 200 districts. It aims at enhancing the livelihood security of households in rural areas.

45. Consider the following statements about MGNREGA and identify the right ones.

i. The disbursement of wages has to be done on monthly basis.
ii. Wages will be paid through their bank or post office accounts.

a. I only
b. ii only
c. both
d. none

ANSWER: b. ii only

The disbursement of wages has to be done on a weekly basis. Generally, this should not be beyond a fortnight.

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

i. The SGSY has been restructured as National Rural Livelihood Mission
ii. It aims at providing at least one member from each identified rural poor household to be brought under SHG.

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

This programme aims at reducing poverty thereby enabling poor households to access gainful self-employment and also skilled wage employment opportunities.

47. Consider the following statements about Aam Admi Bhima Yojana and identify the right ones.

i. The central government is the nodal agency
ii. The premium of 200 rupees will be borne by the centre and states equally

a. I only
b. ii only
c. both
d. none

ANSWER: b. ii only

The state government is the nodal agency for this scheme.

48. Consider the following statements about Aam Admi Bhima Yojana and identify the right ones.

i. 30000 rupees will be payable in case of natural death
ii. 25000 rupees will be payable in case of total permanent disability

a. I only
b. ii only
c. both
d. none

ANSWER: a. I only

Under this scheme, rupees 75000 will be payable if it is a case of total permanent disability and rupees 37500 in case of partial disability.

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

i. The Janashree Bhima Yojana provides life insurance protection to rural BPL families only
ii. People between 18 and 59 years and who are members of the identified occupational group are eligible.

a. I only
b. ii only
c. both
d. none

ANSWER: b. ii only

The Janashree Bhima Yojana provides life insurance protection to rural families as well as urban families living below and marginally above povert line.

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

i. The National Social Security Fund is created for the organized sectors
ii. The beneficiaries are weavers, rickshaw pullers etc.

a. I only
b. ii only
c. both
d. none

ANSWER: b. ii only

The National Social Security Fund is created for the unorganized sectors.

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

i. The National Rural Health Mission was launched in 2005
ii. Under this scheme, it was decided to set up mobile medical units for each districts by 2009.

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

Under this scheme, over 5 lakh ASHAs- Accredited Social Health Activists were to be available by 2008.

52. Which of the following is not a component of Bharat Nirman?

a. Irrigation
b. Sanitation
c. Drinking water
d. Electrification

ANSWER: b. Sanitation

Bharat Nirman has 6 components. The other 3 are rural telephones, roads and housing.

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

i. Under Bharat Nirman, 60 lakh houses are to be constructed.
ii. It aims at creating 10 million ha of additional irrigation capacity.

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

Bharat Nirman has 6 components. They are rural telephones, roads ,housing, electrification, drinking water and irrigation.

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

i. SSA aims at providing free education for all children between 6 and 14.
ii. It is a fundamental right under the RTE Act of 2009

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

The Sarva Shiksha Abhiyan aims at providing free education for all children between 6 and 14.

55.Which of the following is a reason for inflation?

a. Deficit financing
b. Growth in per capita income
c. Structural deficiencies
d. All the above

ANSWER: d. All the above

Inflation refers to rise in the general price level in the economy. Various demand and supply side factors cause inflation.

56.Which of the following is an effect of inflation?

a. Erosion in purchasing power
b. Affects relative price of goods
c. Increase in inequalities of income
d. All the above

ANSWER: d. All the above

As a result of inflation, some sections like producers or big landlords gain due to the ownership of assets, income inequality increases.

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

i. Government can reduce indirect taxes to control inflation
ii. There is trade-off between growth and inflation in India

a. i only
b. ii only
c. both
d. none

ANSWER: c. both

Growth cannot be sustained in inflationary situation for a long time and inflation is bound to be high with high growth rates.

58.Which of the following is not a reason for inflation?

a. Increase in administered prices
b. Increase in cost of capital
c. More dependence on indirect taxes for revenue
d. None of these

ANSWER: d. None of these

Inflation refers to rise in the general price level in the economy. Various demand and supply side factors cause inflation.

59.Which of the following can be undertaken to control inflation?

a. Control on public expenditure
b. Control on hoarding and black marketing
c. Effective control on credit
d. All the above

ANSWER: d. All the above

Inflation can be controlled using monetary, fiscal and other measures.

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

i. For measuring overall inflation in the economy, CPI is used.
ii. WPI was first published in 1942 for 23 commodities

a. i only
b. ii only
c. both
d. none

ANSWER: b. ii only

For measuring overall inflation in the economy, WPI is used. WPI was first published in 1942 for 23 commodities.

61.The base year used for WPI is

a. 1993-94
b. 2001-02
c. 2004-05
d. 2014-15

ANSWER: c. 2004-05

The base year used for WPI is 2004-05, based on the recommendations of Abhijit Sen Committee.

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

i. There are 676 items divided into 3 parts in the WPI
ii. All the 3 parts are given equal weightage

a. i only
b. ii only
c. both
d. none

ANSWER: a. I only

Primary articles constitute 20.12 weightage, fuel has weightage of 14.91 while manufactured items have 64.97 weightage.

63.Which group constitutes maximum weightage in WPI?

a. Primary articles
b. Fuel
c. Manufactured items
d. Equal weightage

ANSWER: c. Manufactured items

Primary articles constitute 20.12 weightage, fuel has weightage of 14.91 while manufactured items have 64.97 weightage.

64.The base year to calculate CPI-IW is

a. 2001
b. 1994
c. 1991
d. 2004

ANSWER: a. 2001

The base year to calculate CPI-IW is 2001. 260 items are included in the index.

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

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

ANSWER: b. ii only

Central government has exclusive power to impose tax which is not mentioned in state or concurrent list.

66.The tax levied by the union government on income of individuals is known as

a. Personal income tax
b. Interest tax
c. Wealth tax
d.sales tax

ANSWER: a. Personal income tax

It is based on the principle of ability to pay. The tax levied by the union government on income of individuals is known as income tax.

67.The tax on net income of companies is

a. Personal income tax
b. Interest tax
c. Wealth tax
d. Corporation tax

ANSWER: d. Corporation tax

The tax on net income of companies is corporate tax. Tax rates are uniform for all categories of companies.

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

i. Wealth tax is collected from productive as well as unproductive assets
ii. Estate duty was a type of inheritance tax of large estates

a. i only
b. ii only
c. both
d. none

ANSWER: b. ii only

Wealth tax is collected from unproductive assets only. Estate duty was abolished in 1985.

69.Which of the following taxes is/are withdrawn or abolished?

a. Interest tax
b. Estate duty
c. Gift tax
d. All the above

ANSWER: d. All the above

Interest tax was withdrawn in 2000-01, estate duty abolished in 1985 and gift tax in 1998-99.

70.The most important source of revenue to the states is

a. Sales tax
b. Service tax
c. Excise duty
d. None of the above

ANSWER: a. Sales tax

Sales tax is the tax on sale of goods and is influenced by the value added tax system.

71. The tax levied on the interstate trade of goods is

a. Sales tax
b. Excise tax
c. Service tax
d. Central sales tax

ANSWER: d. Central sales tax

The tax levied on the interstate trade of goods is the central sales tax.

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

i. The 14th finance commission is headed by C. Rangarajan
ii. The recommendations of the commission will come into effect from April, 1, 2015

a. i only
b. ii only
c. both
d. none

ANSWER: b. ii only

The 14th finance commission was appointed in 2013. It is headed by Y V Reddy.

73.The difference between revenue expenditure and revenue receipts is

a. Revenue deficit
b. Fiscal deficit
c. Budget deficit
d. Primary deficit

ANSWER: a. Revenue deficit

Revenue deficit= revenue expenditure –revenue receipts

74. 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

ANSWER: c. Effective revenue deficit

Effective revenue deficit= revenue deficit-grants for creation of capital assets.

75. The difference between total expenditure and total receipts is

a. Fiscal deficit
b. Budget deficit
c. Primary deficit
d. Revenue deficit

ANSWER: b. Budget deficit

Budget deficit= total expenditure-total receipts

76.The difference between total expenditure and total receipts except loans and other liabilities is called

a. Fiscal deficit
b. Budget deficit
c. Primary deficit
d. Revenue deficit

ANSWER: a. Fiscal deficit

Fiscal deficit= total expenditure-total receipts except loans and other liabilities.

77.The difference between fiscal deficit and interest payment during the year is called

a. Fiscal deficit
b. Budget deficit
c. Primary deficit
d. Revenue deficit

ANSWER: c. Primary deficit

Primary deficit= fiscal deficit-interest payments.

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

i. IMF came into existence as an outcome on Bretton Woods agreement
ii. France was the 1st country to borrow from IMF

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

IMF oversees the international monetary system.

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

i. The executive board is the highest decision making body of IMF
ii. The Board of Governors meets twice a year.

a. I only
b. ii only
c. both
d. none

ANSWER: d. none

The Board of Governors is the highest decision making body of IMF. The Board of Governors meets once a year.

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

i. Executive board conducts the business of the IMF
ii. It meets once in a year

a. i only
b. ii only
c. both
d. none

ANSWER: a. I only

Executive board conducts the business of the IMF. It functions in continuous session and meets several times in a week.

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

i. The day to day work of IMF is conducted by the board of governors
ii. Selected nations who are members of IMF are given a quota

a. i only
b. ii only
c. both
d. none

ANSWER: b. ii only

The day to day work of IMF is conducted by the executive board. All the nations are assigned a quota.

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

i. The quota does not decide voting power in IMF’s decisions
ii. Quota subscription constitutes most of the financial resources of IMF

a. i only
b. ii only
c. both
d. none

ANSWER: b. ii only

The quota decides voting power in IMF’s decisions. Quota subscription constitutes most of the financial resources of IMF.

83.consider the following statements and identify the right ones.

i. SDRs cannot voluntarily be exchanged among members for currencies
ii. US is the largest member of the IMF

a. I only
b. ii only
c. both
d. none

ANSWER: b. ii only

SDRs can voluntarily be exchanged among members for currencies.

84.Which of the following is an institution of World Bank?

a. IBRD
b. IDA
c. IFC
d. All the above

ANSWER: d. All the above

World Bank has five institutions- IBRD, IDA, International Finance Corporation, MIGA and ISCID.

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

i. Low income countries are eligible to receive low interest loans from IDA
ii. India is eligible for a blend of financial assistance from IDA and IBRD

a. I only
b. ii only
c. both
d. none

ANSWER: c. both

IBRD aims at reducing poverty in middle income and credit-worthy poor countries.

86. Which of the following is not an objective of World Bank?

a. To provide guarantee on private loans
b. To develop production facilities in underdeveloped countries
c. To rehabilitate war ruined economies
d. None of the above

ANSWER: d. None of the above

World Bank provides long term capital to member countries for economic reconstruction and development.

87.Which of the following is known as soft loan window of the World Bank?

a. IDA
b. IFC
c. IBRD
d. MIGA

ANSWER: a. IDA

IDA was established in 1960. It aims at reducing poverty by providing interest free credits and grants for economic growth.

88. The investment arm of the world bank is

a. IDA
b. IFC
c. IBRD
d. MIGA
ANSWER b

89. The insurance arm of world bank is

a. IDA
b. IFC
c. IBRD
d. MIGA

ANSWER: d. MIGA

MIGA is known as the insurance arm of World Bank. It was established in 1988

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

i. MIGA does not offers political risk insurance for projects to developing member countries
ii. MIGA also helps investors and lenders deal with investment risks

a. i only
b. ii only
c. both
d. none

ANSWER: b. ii only

MIGA offers political risk insurance for projects to developing member countries.

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

i. IFC is governed by board of governors
ii. It mobilizes capital in international capital markets

a. i only
b. ii only
c. both
d. none

ANSWER: c. both

International Finance Corporation is governed by board of governors who are represented by member countries.

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

i. ICSID is a multilateral treaty formulated by executive directors of IBRD
ii. All the countries have deposited their instruments of ratification, acceptance of the convention.

a. I only
b. ii only
c. both
d. none

ANSWER: a. I only

Not all the countries have deposited their instruments of ratification, acceptance of the convention.

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

i. The head of WTO is known as director general
ii. The WTO summit is held once in very year

a. I only
b. ii only
c. both
d. none

ANSWER: a. I only

The WTO summit is held once in two years. The summit is known as Ministerial Conference.

94 Which of the following about strategy of unbalanced growth is right?
a. Deliberate imbalance in favor of some sectors
b. Simultaneous investment in all sectors
c. Both
d. None
ANSWER: a. Deliberate imbalance in favor of some sectors

This strategy says that there will be positive impact on the sectors that are lagging behind and they will also try to catch up with it.

95.he concept of PQLI was developed by
a. Morris D Morris
b. UNO
c. UNDP
d. Oxford Poverty and Human Development Initiative
ANSWER: a. Morris D Morris

Physical Quality of Life Index is one of the indicator to measure 4 development. It is calculated by using simple average.

96.The parameter/s of the PQLI is/are
a. Life Expectancy Index
b. Standard of living index
c. Infant mortality rate
d. A and C
ANSWER: d. A and C

PQLI has 3 parameters- life expectancy index, infant mortality rate and basic literacy index.

97.The concept of HDI was popularized by
a. Morris D Morris
b. Adam Smith
c. Keynes
d. Mahbub Ul Haq
ANSWER: d. Mahbub Ul Haq

The concept developed in the 1990s. It has 3 important parameters- life expectancy, education achievement index and standard of living index.

98. The component/s of HDI is/are
a. Life expectancy index
b. Infant mortality rate
c. Population growth rate
d. All the above

ANSWER: a. Life expectancy index

The concept developed in the 1990s. It has 3 important parameters- life expectancy, education achievement index and standard of living index.

99.The Multidimensional Poverty Index(MPI) has been developed by
a. The UNDP
b. Oxford HDI
c. The UNO
d. Morris D Morris
ANSWER: b. Oxford HDI

The MPI concept is developed by the Oxford Human Development Initiative. It has three main dimensions to it.

100.Which of following is not a component of MPI?
a. Health
b. Education
c. Occupation
d. Standard of living
ANSWER: c. Occupation

MPI has 3 important dimensions to it- health, education and standard of living. Based on these , there are ten parameters.