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:

If the RBI adopts expansionist open market operations policy, this means that it will:

• openly announce to the market that it intends to expand credit
• sell securities in open market
• offer commercial banks more credit in the open market
• buy securities from non-government holders
Solution
Correct Option: B  [ sell securities in open market ]

Explanation:

If withdrawal of a worker from employment does not create any output loss, this situation is known as

• Search unemployment
• Voluntary unemployment
• Disguised unemployment
• Frictional unemployment
Solution
Correct Option: C  [ Disguised unemployment ]

Explanation:

From the following statements pertaining to the World Economic Forum (WEF), find the correct statement(s) :

(i) The WEF is a platform under the International Monetary Fund (IMF).

(ii) The WEF is an independent department of the World Bank.

(iii) The WEF is an International Organization for Public-Private Cooperation.

(iv) The WEF was established in 1971 as a not-for-profit foundation and is headquartered in Geneva, Switzerland.

Select the correct answer using the codes given below.

• Only (1)
• Only (ii)
• Only (iii) and (iv)
• Only (ii) and (iii)
Solution
Correct Option: C  [ Only (iii) and (iv) ]

Explanation:

Which of the following was established in 1990 as a wholly owned subsidiary under the Small Industries Development Bank of India Act, 1989 ?

• RBI
• SIDBI
• ICICI
• NABARD
Solution
Correct Option: B  [ SIDBI ]

Explanation:

NITI Aayog, which replaced the Planning commission of India, was formed by a cabinet resolution of the Government of Inda on:

• 1st January, 2015
• 26th January, 2015
• 15th August, 2015
• None of the above
Solution
Correct Option: A  [ 1st January, 2015 ]

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:

Which of the following sector gives the largest income in India ?

• Trade sector
• Railway
• Agriculture
• Service sector
Solution
Correct Option: D  [ Service sector ]

Explanation:

Parallel economy refers to:

• Traditional economy
• Black money
• Agriculture based economy
• Socialist economy
Solution
Correct Option: B  [ Black money ]

Explanation:

Which of the following sources provides highest tax revenue to Government of India?

• Personal Income Tax
• Excise Duty
• Corporation Tax
• Customs Duty
Solution
Correct Option: C  [ Corporation Tax ]

Explanation: