Existence of huge black money creates

• increase in the inequality of income
• decrease in the quality of output
• high living standard for all
• Both (B) and (C)
Solution
Correct Option: A  [ increase in the inequality of income ]

Explanation:

In order to control inflationary price rise, Reserve Bank directs Banks to

• Reduce rate of interest on credit
• Reduce Statutory Liquidity Ratio (SLR)
• Increase Cash Reserve Ratio (CRR)
• Buy bonds from capital market
Solution
Correct Option: C  [ Increase Cash Reserve Ratio (CRR) ]

Explanation:

The purpose of land reforms was to :

• increase the production in agriculture
• increase the purchasing power of the rural population
• ensure distributive justice with economic growth
• all of the above
Solution
Correct Option: D  [ all of the above ]

Explanation:

National Development Council was set up in:

• 1950
• 1951
• 1952
• 1954
Solution
Correct Option: C  [ 1952 ]

Explanation:

Fiscal Deficit is:

• Government expenditure minus borrowings
• Government expenditure minus revenue receipts
• Same as budget deficit
• Budget deficit minus borrowings and other liabilities
Solution
Correct Option: B  [ Government expenditure minus revenue receipts ]

Explanation:

Which of the following Committees are related to Banking reforms:
i) Narsimham Committee
ii) P J Nayak Committee
iii) Sunil Mehta Committee
iv) Nachiket Mor Committee

• (i), (ii) and (iii) only
• (ii), (iii) and (iv) only
• (i) and (iv) only
• (i), (ii), (iii) and (iv)
Solution
Correct Option: D  [ (i), (ii), (iii) and (iv) ]

Explanation:

The equilibrium condition for money market is:

• demand for money should be equal to supply of money
• cash in hand should be equal to deposits in bank
• saving is equal to investment
• bank rate is equal to repo rate
Solution
Correct Option: A  [ demand for money should be equal to supply of money ]

Explanation:

Tertiary sector activities include

• Cottage industries
• Mining activities
• Construction activities
• Infrastructure services
Solution
Correct Option: D  [ Infrastructure services ]

Explanation:

The qualification for the Chairman and the members of the Finance Commission are specified in:

• Finance Act of 1951
• Finance Act of 1952
• Finance Act of 1950
• Finance Act of 1953
Solution
Correct Option: A  [ Finance Act of 1951 ]

Explanation:

The period of high inflation and low economic growth is termed as:

• Stagnation
• Take-off stage in economy
• Stagflation
• Depression
Solution
Correct Option: C  [ Stagflation ]

Explanation: