Quiz 312 : Finance , Business & Economy For Bank PO Exams, Civil Services Examinations

1.What will be the ultimate impact on the poor and landless farmers if all of a sudden, government decides to raise the Minimum Support Prices of rice & foodgrains inexorably or excessively?
(A)The poor farmers will become rich
(B)The markets will crash
(C)The poor farmers will get more poor
(D)This will encourage the exports of rice and food grains
(E)Poverty in India will get eliminated

2.The Government of India is moving on Goods and Services Tax (GST) very soon. From the options A to E bring out the ultimate result of this transition?
(A)This transition will be able to bring down the fiscal deficit of the government.
(B)This will bring down the distorted economic incentives and avoidable hassles and uncertainties in the current tax system
(C)This will replace the current multiple tax system and will put single tax in system
(D)This will increase the direct tax revenue of the government
(E)This will justify the distribution of tax revenue among the states & center

3.Consider the following imaginary events in 2010:
1. The monsoon is normal and there is a bumper harvest compared to the poor harvest of the 2009
2. There is no monsoon and rainfall is even lesser to a great extent than 2009 and suddenly the country comes under the grip of the severe drought
3. A new technology comes which all of a sudden increases the farm output in the country by a great extent
Which of the above three events will led to a supply shock ?
(A)1 only
(B)1 & 2 only
(C)2 & 3 only
(D)1 & 3 only
(E)all 1,2,3

4.Which among the following is the most abundant human resource in India?
(A)High Skilled Labor in Organized Sector
(B)High Skilled Labor in Unorganized Sector
(C)Low skilled Labor in Organized sector
(D)Low skilled Labor in Unorganized sector
(E)None of them

5.Who among the following is the current (January 14, 2009) chairman of the Company Law Board?
(A)S Balasubramnian
(B)Dilip R Deshmukh
(C)KK Balu
(D)V S Rao
(E)None of them

6.Many a times we read in the newspapers that Government of India provides subsidies on food, fuel and electricity. Which among the following are reasons behind the fact that ultimate benefit of the subsidy don’t reach to the poorest of the poor in India?
(A)In India the poor people don’t have knowledge about the subsidy on the products
(B)In India subsidy on food, fuel and electricity is marginal and does not help the poor in anyways
(C)In India the public distribution system is quite weak and in only some states the public distribution system has effective coverage
(D)Govt. ‘s policies discourage the access to the subsidies by the poor rural people but encourage the urban people
(E)The subsidies are passed on the state governments which are unable to make the accessible to the rural poor.

7.In the recent years, we have seen that foreign capital has surged in India during the period 2005-08. The policy makers of the country including RBI Governor YV Reddy have emphasized the need for the capital account management in many situations during these years. Which among the
following options is not such a situation, when capital account management was required?
(A)Overly appreciated exchange rates
(B)Excessive domestic liquidity
(C)Asset Price Boom
(D)Inflation & Food Price Rise
(E)Stock Exchange Boom

8.In which year Market Access Initiative (MAI) scheme was launched?

9.Who among the following is the Brand ambassador of Wipro Safe Wash?
(A)Kareena Kapoor
(B)Juhi Chawla
(C)Rani Mukherjee
(E)None of them

10.Over how many years periodic review of the “Miniratna” & “Navratna” status of public enterprises on the basis of their performance?
(A)every year
(B)2 years
(C)3 years
(D)4 years
(E)5 years

11.If an exporter earns money and deposits that with RBI , what will be the ultimate impact on country’s money supply?
(A)Money supply will increase
(B)Money supply will decrease
(C)Money supply will remain unaltered
(D)Money supply will depend upon the current exchange rate
(E)None of the above

12.In which of the following countries maximum number of Branches of Indian Banks are located?

13.What is the FDI cap in India in Banking sector?

14.Many a times we read about Hot Money in newspapers. Which among the following options rightly describes hot money?
(A)Hot money is useful and generally durable and is good for the country in all weathers
(B)Hot money is dangerous and volatile and leaves the country in bad weather conditions
(C)Hot money is good and adds to the development of the country & it comes from exports of services
(D)Hot money is bad & useless as its arises from unusual activities like casinos, gambling, horse races, speculations etc.
(E)Hot money is neither good nor bad , but is just a part of the country’s monetary system and gets altered with the money supply

15.Which among the following is true ?
(A)FDI limit in airports is 74% and airlines is 26%
(B)FDI limit in airports is 74% and airlines is 49%
(C)FDI limit in airports is 49% and airlines is 51%
(D)FDI limit in airports is 100% and airlines is 49%
(E)FDI limit in airports is 100% and airlines is 74%

16.What is the main motive of the government behind having a dual price system & setting up of fair price shops?
(A)To demote speculation and hoarding
(B)To incentivise the trading of essential commodities
(C)To eliminate the monopoly of the traders and speculators
(D)To make the essential commodities available to the weaker sections of the society
(E)All of above

17.Which among the following is an example of Green Field Investment?
(A)Investment made by a real estate company in agriculture land to develop it later when the land prices increase
(B)Investment made by a company in a new factory complex in a remote land of the country where there was no facilities
(C)Investment made by a company to clean up a cement factory located in populated area because of its pollution and using it for a commercial office purpose
(D)Investment made by a company to clean up a cement factory located in populated area because of its pollution and using it for a residential purpose
(E)Development of residential complex / commercial complex with minimum 33% total floor area shed by green trees

18.A zero Gini index means the following?
(A)perfect equality in income
(B)perfect inequality in income
(C)zero GDP growth of the country
(D)zero inflation
(E)None of them

19.From which of the following countries , recently Google threatened to quit ___?

20.Which among the following is/ are correct about GDP per capita?
1.It’s a measurement of the standard of living in an economy
2.It’s a measure of personal income of the citizens
3. Its just an indicator about the health of the country’s economy
(A)1 only
(B)1 & 2 only
(C)2 & 3 only
(D)3 only
(E)2 only

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  • Anonymous

    as an aspirant of bank po it really helps me a lot sir,thank you.I wish all the readers a happy pongal and makar sankranti.

  • rahul

    Thanx a ton sir jee

  • Anonymous

    sir it is helping me a lot a million dollar thanks to u and i wish frm bottom of my heart a happy makar sankranti to u sir as well as to all my fellow friends :)

  • subodh singh

    no words 2 discribe simply awesome

  • Anonymous

    great info for all aspirants


  • Anonymous

    questions are very standard and options are very tricky only person with specialized economic knowledge can answer.TO frame question like this, each and every question demand expert level skill.

  • jyoti


    Thanks a lot for this to-the-point and concrete info at one place.

    I request you to please put a list of FDI limit in all sectors, as it is one of the common question in bank exams. So we will have a rough idea of FDI limits in various sectors and changes can be dealt with….

    Thanks a lot.

  • Anonymous

    Thanks sir
    It is just before of Indian Bank Exam……….

  • Anonymous

    Sir/Madam, I am a regular follower of all the quizez on the blog, they help a lot in answering Banking Exams. Just one request – Please give more questions on the banking system and rules & regulations related to banks, how banks function(as in different kinds of Accounts), what are the latest updates in different aspects of banks functioning like loans ceilings, NPA figures etc. This would be really helpful. Thank you !

  • ashyad

    sir could you please publish the various banks rate…thank you

  • Anonymous

    Its really great and woderfull


  • Anonymous

    q no.1

    why answer is c?

  • Admin

    read the Note by clicking on highlighted word Impact :
    Majority of the Indian farmers who are poorer marginal farmers will be hurt by a sudden increase in the MSP because raising MSP inexorably will raise the food prices and these poorer farmers in India are net buyers of food grains. Besides there are millions of landless laborers & rural households which along with the poor farmers & raising excessively higher MSPs for wheat and rice will prove damaging for rural households.