SSC CGL Previous Year Questions (2023-20): Economics - 2 | SSC CGL Previous Year Papers PDF Download

 Page 1


 Pinnacle  Economics 
 Q.151.  Who  among  the  following  headed 
 the National Income Committee? 
 SSC CGL 12/12/2022 (2nd Shift) 
 (a) PC Mahalanobis   (b) VKRV Rao 
 (c) DR Gadgil               (d) BR Ambedkar 
 Sol.151.(a)  PC  Mahalanobis  (chairman 
 of  Indian  Statistical  Institute).  The 
 National  Income  Committee  (NIC) 
 (1949)  calculated  the  National  Income  of 
 India  and  compiled  statistics.  Members 
 of NIC : VKRV Rao and DR Gadgil. 
 Q.152.  The  difference  between  a 
 farmer's  output  over  and  above  his 
 on-farm consumption is known as ______. 
 SSC CPO  09/11/2022 (Evening) 
 (a) consumer surplus 
 (b) marketable surplus 
 (c) foreign consumption 
 (d) domestic consumption 
 Sol.152.(b)  Marketable  Surplus. 
 Consumer  surplus,  also  called  social 
 surplus,  occurs  when  the  price 
 consumers  pay  for  a  product  or  service 
 is  less  than  the  price  they  are  willing  to 
 pay.  Domestic  consumption  products 
 and  services  that  are  bought  and  used  in 
 the country that makes them. 
 Q.153.  In  1950-51,  what  percentage  of 
 GDP  of  India  was  contributed  by  the 
 industrial sector? 
 SSC CPO 10/11/2022 (Evening) 
 (a) 22  %  (b) 28  %  (c) 13  %  (d) 16  % 
 Sol.153.(c)  13%.  GDP  (Gross  Domestic 
 Product)  Agriculture  sector  -  59%  of  GDP 
 in (1950-51). 
 Q.154.  Which  of  the  following 
 commodities are exempted from GST? 
 SSC CPO 11/11/2022 (Afternoon) 
 (a) Hand sanitisers 
 (b) Pens 
 (c) Alcohol for human consumption 
 (d) Ventilators 
 Sol.154.(c)  Alcohol  for  human 
 consumption  .  Other  Goods  not  covered 
 under  Goods  and  Services  Tax  (GST): 
 Petrol,  high-speed  diesel,  aviation  turbine 
 fuel,  crude  oil,  Electricity,  and  Natural 
 Gas.  GST  {The  Constitution  122nd 
 Amendment  Bill  (2014),  101st 
 Amendment  Act  (2016),  Article  246A 
 (Special  Provision  for  GST),  Article  269A 
 (Levy  and  Collection  of  GST  for 
 Inter-State  Supply),  Article  279A  (GST 
 Council),  Article  286  (Restrictions  on  Tax 
 Imposition)}. 
 Q.155.  When  tax  collection  exceeds  the 
 required  expenditure,  the  budget  is  said 
 to be in ______. 
 SSC MTS 14/07/2022 (Afternoon) 
 (a) de?cit                          (b) surplus 
 (c) economic spread      (d) balance 
 Sol.155.(b) Surplus.  Balanced Budget  – 
 if  the  expected  expenditure  is  equal  to 
 the  anticipated  receipts  for  a  ?scal  year. 
 Surplus  Budget  –  If  the  expected 
 revenues  surpass  the  estimated 
 expenditure  for  a  particular  business 
 year. 
 Q.156.  The  tax  imposed  on  goods 
 imported  into  and  exported  out  of  India 
 is called _____. 
 SSC MTS 22/07/2022 (Afternoon) 
 (a) corporation tax       (b) excise tax 
 (c) capital gain tax       (d) custom duty 
 Sol.156.(d)  Customs  duty  refers  to  the 
 tax  imposed  on  goods  when  they  are 
 transported  across  international  borders. 
 An  Excise  tax  is  any  duty  on 
 manufactured  goods  that  is  levied  at  the 
 moment  of  manufacture  rather  than  at 
 sale. 
 Q.157.  Lack  of  ?nancial  discipline  by  the 
 government can lead to ______________. 
 (A) excess expenditure 
 (B) in?ation 
 SSC CHSL 26/05/2022 ( Morning) 
 (a) Only B  (b) Only A 
 (c) A and B  (d) Neither A nor B 
 Sol.157.(c)  A  and  B.  Lack  of  ?nancial 
 discipline  by  the  government  can  lead  to 
 excess  expenditure  and  in?ation. 
 In?ation  is  a  decrease  in  the  purchasing 
 power  of  money,  re?ected  in  a  general 
 increase in the prices of goods and 
 services in an economy. 
 Q.158.  GDP  that  takes  into  account  the 
 costs  in  terms  of  environmental  pollution 
 and  exploitation  of  natural  resources  is 
 called __________. 
 SSC CHSL 27/05/2022 (Evening) 
 (a) white GDP  (b) green GDP 
 (c) brown GDP  (d) blue GDP 
 Sol.158.(b)  The  Green  Gross  Domestic 
 Product  is  an  indicator  of  economic 
 growth  with  environmental  factors  taken 
 into  consideration  along  with  the 
 standard  GDP  of  a  country.  The  blue 
 economy  is  the  "sustainable  use  of 
 ocean  resources  for  economic  growth, 
 improved  livelihoods,  and  jobs  while 
 preserving  the  health  of  the  ocean 
 ecosystem." 
 Q.159.  NDP at FC = GDP at FC minus ___. 
 SSC CHSL 30/05/2022 (Morning) 
 (a) depreciation 
 (b) indirect taxes 
 (c) net factor income from abroad 
 (d) subsidies 
 Sol.159.(a) Depreciation  . 
 Q.160.  Which  of  the  following  angles  of 
 the  ?ow  of  factor  payments  forms  the 
 basis to estimate the national income? 
 SSC CHSL 30/05/2022 (Afternoon) 
 (a) Consumption angle 
 (b) Expenditure angle 
 (c) Income distribution angle 
 (d) Production angle 
 Sol.160.(c)  Income  distribution  angle 
 forms  the  basis  to  estimate  the  National 
 income.  National  income  is  the  sum  of 
 all  the  factor  income  that  is  generated 
 during a production year. 
 Q.161.  What  is  the  domestic  income  if 
 national  income  is  ?10,000  crore  and  net 
 factor  income  from  abroad  is  ?2,000 
 crore? 
 SSC CHSL 02/06/2022 (Morning) 
 (a) ?5,000 crore  (b) ?12,000 crore 
 (c) ?10,000 crore  (d) ?8,000 crore 
 Sol.161.(d)  ?8,000  crore  .  Domestic 
 income  =  National  Income  -  Net  factor 
 income  from  abroad.  Domestic  income= 
 ?10000- ?2000= ?8,000 crore. 
 Q.162.  To  combat  in?ation,  what  is  the 
 usual monetary policy stance adopted? 
 SSC CHSL 03/06/2022 (Afternoon) 
 (a) Owlish  (b) Dovish 
 (c) Hicksian  (d) Hawkish 
 Sol.162.(d) Hawkish stance  - To combat 
 in?ation,  the  central  bank  is  willing  to 
 hike  interest  rates  to  curb  the  money 
 supply  and  thus  reduce  the  demand. 
 Accommodative  stance  -  Central  bank  is 
 prepared  to  expand  the  money  supply  by 
 cutting  interest  rates  to  boost  economic 
 growth.  Neutral  stance  -  Central  banks 
 can either cut-rate or increase the rate. 
 Q.163.  Which  of  the  following 
 statements is/are correct? 
 I.  Only  marketed  goods  are  considered 
 while  estimating  Gross  Domestic 
 Product(GDP). 
 II.  The  work  done  by  a  woman  at  her 
 home  is  outside  the  purview  of  Gross 
 Domestic Product. 
 III.  In estimating GDP , only ?nal goods 
 and services are considered. 
 SSC CGL 11/04/2022 (Morning) 
 (a) Only II and III  (b) I, II and III 
 (c) Only I and III  (d) Only II 
 Sol.163.(b)  I, II and III. 
 Q.164.  The  value  of  the  Gross  Domestic 
 Product  (GDP)  of  India  is  published  by 
 www.ssccglpinnacle.com                                                 Download Pinnacle Exam Preparation App 381
Page 2


 Pinnacle  Economics 
 Q.151.  Who  among  the  following  headed 
 the National Income Committee? 
 SSC CGL 12/12/2022 (2nd Shift) 
 (a) PC Mahalanobis   (b) VKRV Rao 
 (c) DR Gadgil               (d) BR Ambedkar 
 Sol.151.(a)  PC  Mahalanobis  (chairman 
 of  Indian  Statistical  Institute).  The 
 National  Income  Committee  (NIC) 
 (1949)  calculated  the  National  Income  of 
 India  and  compiled  statistics.  Members 
 of NIC : VKRV Rao and DR Gadgil. 
 Q.152.  The  difference  between  a 
 farmer's  output  over  and  above  his 
 on-farm consumption is known as ______. 
 SSC CPO  09/11/2022 (Evening) 
 (a) consumer surplus 
 (b) marketable surplus 
 (c) foreign consumption 
 (d) domestic consumption 
 Sol.152.(b)  Marketable  Surplus. 
 Consumer  surplus,  also  called  social 
 surplus,  occurs  when  the  price 
 consumers  pay  for  a  product  or  service 
 is  less  than  the  price  they  are  willing  to 
 pay.  Domestic  consumption  products 
 and  services  that  are  bought  and  used  in 
 the country that makes them. 
 Q.153.  In  1950-51,  what  percentage  of 
 GDP  of  India  was  contributed  by  the 
 industrial sector? 
 SSC CPO 10/11/2022 (Evening) 
 (a) 22  %  (b) 28  %  (c) 13  %  (d) 16  % 
 Sol.153.(c)  13%.  GDP  (Gross  Domestic 
 Product)  Agriculture  sector  -  59%  of  GDP 
 in (1950-51). 
 Q.154.  Which  of  the  following 
 commodities are exempted from GST? 
 SSC CPO 11/11/2022 (Afternoon) 
 (a) Hand sanitisers 
 (b) Pens 
 (c) Alcohol for human consumption 
 (d) Ventilators 
 Sol.154.(c)  Alcohol  for  human 
 consumption  .  Other  Goods  not  covered 
 under  Goods  and  Services  Tax  (GST): 
 Petrol,  high-speed  diesel,  aviation  turbine 
 fuel,  crude  oil,  Electricity,  and  Natural 
 Gas.  GST  {The  Constitution  122nd 
 Amendment  Bill  (2014),  101st 
 Amendment  Act  (2016),  Article  246A 
 (Special  Provision  for  GST),  Article  269A 
 (Levy  and  Collection  of  GST  for 
 Inter-State  Supply),  Article  279A  (GST 
 Council),  Article  286  (Restrictions  on  Tax 
 Imposition)}. 
 Q.155.  When  tax  collection  exceeds  the 
 required  expenditure,  the  budget  is  said 
 to be in ______. 
 SSC MTS 14/07/2022 (Afternoon) 
 (a) de?cit                          (b) surplus 
 (c) economic spread      (d) balance 
 Sol.155.(b) Surplus.  Balanced Budget  – 
 if  the  expected  expenditure  is  equal  to 
 the  anticipated  receipts  for  a  ?scal  year. 
 Surplus  Budget  –  If  the  expected 
 revenues  surpass  the  estimated 
 expenditure  for  a  particular  business 
 year. 
 Q.156.  The  tax  imposed  on  goods 
 imported  into  and  exported  out  of  India 
 is called _____. 
 SSC MTS 22/07/2022 (Afternoon) 
 (a) corporation tax       (b) excise tax 
 (c) capital gain tax       (d) custom duty 
 Sol.156.(d)  Customs  duty  refers  to  the 
 tax  imposed  on  goods  when  they  are 
 transported  across  international  borders. 
 An  Excise  tax  is  any  duty  on 
 manufactured  goods  that  is  levied  at  the 
 moment  of  manufacture  rather  than  at 
 sale. 
 Q.157.  Lack  of  ?nancial  discipline  by  the 
 government can lead to ______________. 
 (A) excess expenditure 
 (B) in?ation 
 SSC CHSL 26/05/2022 ( Morning) 
 (a) Only B  (b) Only A 
 (c) A and B  (d) Neither A nor B 
 Sol.157.(c)  A  and  B.  Lack  of  ?nancial 
 discipline  by  the  government  can  lead  to 
 excess  expenditure  and  in?ation. 
 In?ation  is  a  decrease  in  the  purchasing 
 power  of  money,  re?ected  in  a  general 
 increase in the prices of goods and 
 services in an economy. 
 Q.158.  GDP  that  takes  into  account  the 
 costs  in  terms  of  environmental  pollution 
 and  exploitation  of  natural  resources  is 
 called __________. 
 SSC CHSL 27/05/2022 (Evening) 
 (a) white GDP  (b) green GDP 
 (c) brown GDP  (d) blue GDP 
 Sol.158.(b)  The  Green  Gross  Domestic 
 Product  is  an  indicator  of  economic 
 growth  with  environmental  factors  taken 
 into  consideration  along  with  the 
 standard  GDP  of  a  country.  The  blue 
 economy  is  the  "sustainable  use  of 
 ocean  resources  for  economic  growth, 
 improved  livelihoods,  and  jobs  while 
 preserving  the  health  of  the  ocean 
 ecosystem." 
 Q.159.  NDP at FC = GDP at FC minus ___. 
 SSC CHSL 30/05/2022 (Morning) 
 (a) depreciation 
 (b) indirect taxes 
 (c) net factor income from abroad 
 (d) subsidies 
 Sol.159.(a) Depreciation  . 
 Q.160.  Which  of  the  following  angles  of 
 the  ?ow  of  factor  payments  forms  the 
 basis to estimate the national income? 
 SSC CHSL 30/05/2022 (Afternoon) 
 (a) Consumption angle 
 (b) Expenditure angle 
 (c) Income distribution angle 
 (d) Production angle 
 Sol.160.(c)  Income  distribution  angle 
 forms  the  basis  to  estimate  the  National 
 income.  National  income  is  the  sum  of 
 all  the  factor  income  that  is  generated 
 during a production year. 
 Q.161.  What  is  the  domestic  income  if 
 national  income  is  ?10,000  crore  and  net 
 factor  income  from  abroad  is  ?2,000 
 crore? 
 SSC CHSL 02/06/2022 (Morning) 
 (a) ?5,000 crore  (b) ?12,000 crore 
 (c) ?10,000 crore  (d) ?8,000 crore 
 Sol.161.(d)  ?8,000  crore  .  Domestic 
 income  =  National  Income  -  Net  factor 
 income  from  abroad.  Domestic  income= 
 ?10000- ?2000= ?8,000 crore. 
 Q.162.  To  combat  in?ation,  what  is  the 
 usual monetary policy stance adopted? 
 SSC CHSL 03/06/2022 (Afternoon) 
 (a) Owlish  (b) Dovish 
 (c) Hicksian  (d) Hawkish 
 Sol.162.(d) Hawkish stance  - To combat 
 in?ation,  the  central  bank  is  willing  to 
 hike  interest  rates  to  curb  the  money 
 supply  and  thus  reduce  the  demand. 
 Accommodative  stance  -  Central  bank  is 
 prepared  to  expand  the  money  supply  by 
 cutting  interest  rates  to  boost  economic 
 growth.  Neutral  stance  -  Central  banks 
 can either cut-rate or increase the rate. 
 Q.163.  Which  of  the  following 
 statements is/are correct? 
 I.  Only  marketed  goods  are  considered 
 while  estimating  Gross  Domestic 
 Product(GDP). 
 II.  The  work  done  by  a  woman  at  her 
 home  is  outside  the  purview  of  Gross 
 Domestic Product. 
 III.  In estimating GDP , only ?nal goods 
 and services are considered. 
 SSC CGL 11/04/2022 (Morning) 
 (a) Only II and III  (b) I, II and III 
 (c) Only I and III  (d) Only II 
 Sol.163.(b)  I, II and III. 
 Q.164.  The  value  of  the  Gross  Domestic 
 Product  (GDP)  of  India  is  published  by 
 www.ssccglpinnacle.com                                                 Download Pinnacle Exam Preparation App 381
 Pinnacle  Economics 
 PIB in ______. 
 SSC CGL 12/04/2022 (Morning) 
 (a) US Dollar  (b) Yen 
 (c) Yuan  (d) Indian Rupee 
 Sol.164.(d)  Indian  Rupee.  GDP  is  de?ned 
 by  the  following  formula  :  GDP  = 
 Consumption  +  Investment  + 
 Government Spending  +  Net Exports. 
 Q.165.  In  which  year  did  India's  ratio  of 
 public  debt  to  GDP  go  up  to  a  record 
 84.2% ? 
 SSC CGL 12/04/2022 (Afternoon) 
 (a) 1991   (b) 1999   (c) 2003   (d) 2001 
 Sol.165.(c)  2003. 
 Q.166.  ______  is  a  tax  system  that 
 collects  a  greater  share  of  income  from 
 those  with  high  incomes  than  from  those 
 with lower incomes. 
 SSC CGL 12/04/2022 (Evening) 
 (a) Proportional tax  (b) Regressive tax 
 (c) Payroll tax            (d) Progressive tax 
 Sol.166.(d)  Progressive  tax  is  a  tax 
 system  that  collects  a  greater  share  of 
 income  from  those  with  high  incomes 
 than  from  those  with  lower  incomes. 
 Payroll  tax  can  be  de?ned  as  the  tax  that 
 is  withheld,  charged,  or  levied  on  the 
 payroll of the employer. 
 Q.167.  According  to  the  Output  Method, 
 GDP is calculated as: 
 SSC CGL 13/04/2022 (Evening) 
 (a) GDP at Constant Prices – Taxes + 
 Subsidies 
 (b) GDP at Constant Prices + Subsidies 
 (c) GDP at Constant Prices – Taxes 
 (d) GDP at Constant Prices + Taxes – 
 Subsidies 
 Sol.167.(a)  GDP  at  Constant  Prices  – 
 Taxes  +  Subsidies  .  GDP  can  be 
 calculated in three ways, using 
 expenditures, production, or incomes. 
 Q.168.  Which  of  the  following  is  India’s 
 ?rst Paperless Budget? 
 SSC CGL 18/04/2022 (Morning) 
 (a) Union Budget 2018-19 
 (b) Union Budget 2020-21 
 (c) Union Budget 2019-20 
 (d) Union Budget 2021-22 
 Sol.168.(d)  Union  Budget  2021-22. 
 Finance  Minister  Nirmala  Sitharaman 
 presented the ?rst paperless budget. 
 Q.169.  Which  of  the  given  statements 
 about the Union Budget is/are true? 
 a)  Vote  on  Account  deals  only  with  the 
 expenditure  side  of  the  government 
 budget. 
 b)  Vote  on  Account  and  Interim  Budget 
 are not the same. 
 c)  An  Interim  Budget  gives  a  complete 
 ?nancial  statement,  similar  to  a  full 
 budget. 
 SSC CGL 21/04/2022 (Evening) 
 (a) Only a             (b) Only c 
 (c) a, b and c       (d) a and b 
 Sol.169.(c)  Budget  (Annual  ?nancial 
 statement,  Article  112)  is  a  statement  of 
 the  estimated  receipts  and  expenditure 
 of  the  government  in  a  ?nancial  year  (1 
 st 
 April  -  31 
 st 
 March).  A  vote-on-account  is 
 Parliament's  approval  to  the  Centre  for 
 withdrawal  of  money  from  the 
 Consolidated  Fund  of  India  for  a 
 speci?ed  expenditure  to  be  incurred  for  a 
 particular period. 
 Q.170.  The GDP de?ator is also called: 
 SSC CGL 21/04/2022 (Evening) 
 (a) implicit in?ation index 
 (b) explicit in?ation index 
 (c) implicit price de?ator 
 (d) explicit price de?ator 
 Sol.170.(c)  Implicit  price  de?ator  .  Gross 
 domestic  product  (GDP)  is  the  monetary 
 value  of  all  ?nished  goods  and  services 
 made  within  a  political  territory  during  a 
 speci?c period. 
 Q.171.  As  per  the  recommendations  of 
 the  National  Statistical  Commission,  the 
 Base  Year  of  the  GDP  Series  in  India  was 
 revised  from  2004-05  to  ______  with 
 effect from January 2015. 
 SSC MTS 06/10/2021 (Afternoon) 
 (a) 2011-12  (b) 2013-14 
 (c) 2005-06  (d) 2009-10 
 Sol.171.(a)  2011-12.  Base  Year  prices 
 are  being  used  to  calculate  the  real  GDP . 
 The  Base  Year  is  a  reference  period  that 
 provides  a  benchmark  against  which 
 price  changes  of  goods  and  services  are 
 measured. 
 Q.172.  Ronald  Reagan,  the  40th 
 President  of  the  US,  signed  the  largest 
 tax  cut  in  the  history  of  their  country  in 
 1981. Which economic theory was this 
 policy centred around? 
 SSC MTS 06/10/2021 (Evening) 
 (a) Laffer Curve 
 (b) Lorenz Curve 
 (c) Kuznets Curve 
 (d) Sweezy's Kinked Demand Curve 
 Sol.172.(a)  Laffer  Curve  is  a  graphic 
 representation  of  the  relationship 
 between  rates  of  taxation  and  the 
 resulting levels of government revenue. 
 Q.173.  In  which  year  was  the  Value 
 Added Tax introduced in India? 
 SSC MTS 08/10/2021 (Afternoon) 
 (a) 2007   (b) 2005    (c) 2002     (d) 2010 
 Sol.173.(b)  2005  .  Value  added  tax  (VAT, 
 Indirect  tax)  is  an  added  amount  on  the 
 purchase  of  an  article  that  increases  the 
 price  of  that  item  at  each  stage  of 
 production  to  distribution.  Since  2017,  it 
 get  subsumed  under  Goods  and  services 
 tax. 
 Q.174.  Which  of  the  following  items  does 
 NOT  directly  affect  the  Current  Account 
 Balance of India? 
 SSC MTS 11/10/2021 (Evening) 
 (a) Net income abroad 
 (b) Foreign aid 
 (c) Trade gap 
 (d) Revenue income 
 Sol.174.(d)  Revenue  income  .  The  5 
 major  sources  of  revenue  for  the 
 Government  are  Goods  and  Services  Tax 
 (GST),  Income  tax,  corporation  tax, 
 non-tax revenues, union excise duties. 
 Q.175.  The  Union  Budget,  2020-21, 
 increased  deposit  insurance  coverage  for 
 bank  deposits  to  ?  ____  (lakhs)per 
 depositor. 
 SSC MTS 22/10/2021 (Afternoon) 
 (a) 1  (b) 2       (c) 5  (d) 3 
 Sol.175.(c) 5 Lakhs.  Deposit Insurance 
 provided  by  the  Deposit  Insurance  and 
 Credit  Guarantee  Corporation  (DICGC),  a 
 wholly  owned  subsidiary  of  the  Reserve 
 Bank  of  India  (RBI).  It  provides  deposit 
 insurance  that  works  as  a  protection 
 cover  for  bank  deposit  holders  when  the 
 bank fails to pay its depositors. 
 Q.176.  Which of the following sectors of 
 the  economy  has  the  highest  share  in 
 India's GDP ? 
 SSC CHSL 12/10/2020 (Afternoon) 
 (a) Agriculture  (b) Industrial 
 (c) Manufacturing   (d) Service 
 Sol.176.(d)  Services  sector  .  Example  of 
 Services  sector  -  banking,  insurance, 
 ?nance etc. 
 Q.177.  Who  among  the  following 
 publishes the Economic Survey of India ? 
 SSC CGL 03/03/2020 (Evening) 
 (a) Ministry of Finance 
 (b) Indian Statistical Institute 
 (c) National Development Council 
 (d) Institute of ?nance 
 Sol.177.(a)  Ministry  of  Finance  .  The 
 Department  of  Economic  Affairs, 
 Ministry  of  Finance  presents  the  survey 
 in  parliament  every  year,  just  before  the 
 union budget. 
 www.ssccglpinnacle.com                                                 Download Pinnacle Exam Preparation App 382
Page 3


 Pinnacle  Economics 
 Q.151.  Who  among  the  following  headed 
 the National Income Committee? 
 SSC CGL 12/12/2022 (2nd Shift) 
 (a) PC Mahalanobis   (b) VKRV Rao 
 (c) DR Gadgil               (d) BR Ambedkar 
 Sol.151.(a)  PC  Mahalanobis  (chairman 
 of  Indian  Statistical  Institute).  The 
 National  Income  Committee  (NIC) 
 (1949)  calculated  the  National  Income  of 
 India  and  compiled  statistics.  Members 
 of NIC : VKRV Rao and DR Gadgil. 
 Q.152.  The  difference  between  a 
 farmer's  output  over  and  above  his 
 on-farm consumption is known as ______. 
 SSC CPO  09/11/2022 (Evening) 
 (a) consumer surplus 
 (b) marketable surplus 
 (c) foreign consumption 
 (d) domestic consumption 
 Sol.152.(b)  Marketable  Surplus. 
 Consumer  surplus,  also  called  social 
 surplus,  occurs  when  the  price 
 consumers  pay  for  a  product  or  service 
 is  less  than  the  price  they  are  willing  to 
 pay.  Domestic  consumption  products 
 and  services  that  are  bought  and  used  in 
 the country that makes them. 
 Q.153.  In  1950-51,  what  percentage  of 
 GDP  of  India  was  contributed  by  the 
 industrial sector? 
 SSC CPO 10/11/2022 (Evening) 
 (a) 22  %  (b) 28  %  (c) 13  %  (d) 16  % 
 Sol.153.(c)  13%.  GDP  (Gross  Domestic 
 Product)  Agriculture  sector  -  59%  of  GDP 
 in (1950-51). 
 Q.154.  Which  of  the  following 
 commodities are exempted from GST? 
 SSC CPO 11/11/2022 (Afternoon) 
 (a) Hand sanitisers 
 (b) Pens 
 (c) Alcohol for human consumption 
 (d) Ventilators 
 Sol.154.(c)  Alcohol  for  human 
 consumption  .  Other  Goods  not  covered 
 under  Goods  and  Services  Tax  (GST): 
 Petrol,  high-speed  diesel,  aviation  turbine 
 fuel,  crude  oil,  Electricity,  and  Natural 
 Gas.  GST  {The  Constitution  122nd 
 Amendment  Bill  (2014),  101st 
 Amendment  Act  (2016),  Article  246A 
 (Special  Provision  for  GST),  Article  269A 
 (Levy  and  Collection  of  GST  for 
 Inter-State  Supply),  Article  279A  (GST 
 Council),  Article  286  (Restrictions  on  Tax 
 Imposition)}. 
 Q.155.  When  tax  collection  exceeds  the 
 required  expenditure,  the  budget  is  said 
 to be in ______. 
 SSC MTS 14/07/2022 (Afternoon) 
 (a) de?cit                          (b) surplus 
 (c) economic spread      (d) balance 
 Sol.155.(b) Surplus.  Balanced Budget  – 
 if  the  expected  expenditure  is  equal  to 
 the  anticipated  receipts  for  a  ?scal  year. 
 Surplus  Budget  –  If  the  expected 
 revenues  surpass  the  estimated 
 expenditure  for  a  particular  business 
 year. 
 Q.156.  The  tax  imposed  on  goods 
 imported  into  and  exported  out  of  India 
 is called _____. 
 SSC MTS 22/07/2022 (Afternoon) 
 (a) corporation tax       (b) excise tax 
 (c) capital gain tax       (d) custom duty 
 Sol.156.(d)  Customs  duty  refers  to  the 
 tax  imposed  on  goods  when  they  are 
 transported  across  international  borders. 
 An  Excise  tax  is  any  duty  on 
 manufactured  goods  that  is  levied  at  the 
 moment  of  manufacture  rather  than  at 
 sale. 
 Q.157.  Lack  of  ?nancial  discipline  by  the 
 government can lead to ______________. 
 (A) excess expenditure 
 (B) in?ation 
 SSC CHSL 26/05/2022 ( Morning) 
 (a) Only B  (b) Only A 
 (c) A and B  (d) Neither A nor B 
 Sol.157.(c)  A  and  B.  Lack  of  ?nancial 
 discipline  by  the  government  can  lead  to 
 excess  expenditure  and  in?ation. 
 In?ation  is  a  decrease  in  the  purchasing 
 power  of  money,  re?ected  in  a  general 
 increase in the prices of goods and 
 services in an economy. 
 Q.158.  GDP  that  takes  into  account  the 
 costs  in  terms  of  environmental  pollution 
 and  exploitation  of  natural  resources  is 
 called __________. 
 SSC CHSL 27/05/2022 (Evening) 
 (a) white GDP  (b) green GDP 
 (c) brown GDP  (d) blue GDP 
 Sol.158.(b)  The  Green  Gross  Domestic 
 Product  is  an  indicator  of  economic 
 growth  with  environmental  factors  taken 
 into  consideration  along  with  the 
 standard  GDP  of  a  country.  The  blue 
 economy  is  the  "sustainable  use  of 
 ocean  resources  for  economic  growth, 
 improved  livelihoods,  and  jobs  while 
 preserving  the  health  of  the  ocean 
 ecosystem." 
 Q.159.  NDP at FC = GDP at FC minus ___. 
 SSC CHSL 30/05/2022 (Morning) 
 (a) depreciation 
 (b) indirect taxes 
 (c) net factor income from abroad 
 (d) subsidies 
 Sol.159.(a) Depreciation  . 
 Q.160.  Which  of  the  following  angles  of 
 the  ?ow  of  factor  payments  forms  the 
 basis to estimate the national income? 
 SSC CHSL 30/05/2022 (Afternoon) 
 (a) Consumption angle 
 (b) Expenditure angle 
 (c) Income distribution angle 
 (d) Production angle 
 Sol.160.(c)  Income  distribution  angle 
 forms  the  basis  to  estimate  the  National 
 income.  National  income  is  the  sum  of 
 all  the  factor  income  that  is  generated 
 during a production year. 
 Q.161.  What  is  the  domestic  income  if 
 national  income  is  ?10,000  crore  and  net 
 factor  income  from  abroad  is  ?2,000 
 crore? 
 SSC CHSL 02/06/2022 (Morning) 
 (a) ?5,000 crore  (b) ?12,000 crore 
 (c) ?10,000 crore  (d) ?8,000 crore 
 Sol.161.(d)  ?8,000  crore  .  Domestic 
 income  =  National  Income  -  Net  factor 
 income  from  abroad.  Domestic  income= 
 ?10000- ?2000= ?8,000 crore. 
 Q.162.  To  combat  in?ation,  what  is  the 
 usual monetary policy stance adopted? 
 SSC CHSL 03/06/2022 (Afternoon) 
 (a) Owlish  (b) Dovish 
 (c) Hicksian  (d) Hawkish 
 Sol.162.(d) Hawkish stance  - To combat 
 in?ation,  the  central  bank  is  willing  to 
 hike  interest  rates  to  curb  the  money 
 supply  and  thus  reduce  the  demand. 
 Accommodative  stance  -  Central  bank  is 
 prepared  to  expand  the  money  supply  by 
 cutting  interest  rates  to  boost  economic 
 growth.  Neutral  stance  -  Central  banks 
 can either cut-rate or increase the rate. 
 Q.163.  Which  of  the  following 
 statements is/are correct? 
 I.  Only  marketed  goods  are  considered 
 while  estimating  Gross  Domestic 
 Product(GDP). 
 II.  The  work  done  by  a  woman  at  her 
 home  is  outside  the  purview  of  Gross 
 Domestic Product. 
 III.  In estimating GDP , only ?nal goods 
 and services are considered. 
 SSC CGL 11/04/2022 (Morning) 
 (a) Only II and III  (b) I, II and III 
 (c) Only I and III  (d) Only II 
 Sol.163.(b)  I, II and III. 
 Q.164.  The  value  of  the  Gross  Domestic 
 Product  (GDP)  of  India  is  published  by 
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 Pinnacle  Economics 
 PIB in ______. 
 SSC CGL 12/04/2022 (Morning) 
 (a) US Dollar  (b) Yen 
 (c) Yuan  (d) Indian Rupee 
 Sol.164.(d)  Indian  Rupee.  GDP  is  de?ned 
 by  the  following  formula  :  GDP  = 
 Consumption  +  Investment  + 
 Government Spending  +  Net Exports. 
 Q.165.  In  which  year  did  India's  ratio  of 
 public  debt  to  GDP  go  up  to  a  record 
 84.2% ? 
 SSC CGL 12/04/2022 (Afternoon) 
 (a) 1991   (b) 1999   (c) 2003   (d) 2001 
 Sol.165.(c)  2003. 
 Q.166.  ______  is  a  tax  system  that 
 collects  a  greater  share  of  income  from 
 those  with  high  incomes  than  from  those 
 with lower incomes. 
 SSC CGL 12/04/2022 (Evening) 
 (a) Proportional tax  (b) Regressive tax 
 (c) Payroll tax            (d) Progressive tax 
 Sol.166.(d)  Progressive  tax  is  a  tax 
 system  that  collects  a  greater  share  of 
 income  from  those  with  high  incomes 
 than  from  those  with  lower  incomes. 
 Payroll  tax  can  be  de?ned  as  the  tax  that 
 is  withheld,  charged,  or  levied  on  the 
 payroll of the employer. 
 Q.167.  According  to  the  Output  Method, 
 GDP is calculated as: 
 SSC CGL 13/04/2022 (Evening) 
 (a) GDP at Constant Prices – Taxes + 
 Subsidies 
 (b) GDP at Constant Prices + Subsidies 
 (c) GDP at Constant Prices – Taxes 
 (d) GDP at Constant Prices + Taxes – 
 Subsidies 
 Sol.167.(a)  GDP  at  Constant  Prices  – 
 Taxes  +  Subsidies  .  GDP  can  be 
 calculated in three ways, using 
 expenditures, production, or incomes. 
 Q.168.  Which  of  the  following  is  India’s 
 ?rst Paperless Budget? 
 SSC CGL 18/04/2022 (Morning) 
 (a) Union Budget 2018-19 
 (b) Union Budget 2020-21 
 (c) Union Budget 2019-20 
 (d) Union Budget 2021-22 
 Sol.168.(d)  Union  Budget  2021-22. 
 Finance  Minister  Nirmala  Sitharaman 
 presented the ?rst paperless budget. 
 Q.169.  Which  of  the  given  statements 
 about the Union Budget is/are true? 
 a)  Vote  on  Account  deals  only  with  the 
 expenditure  side  of  the  government 
 budget. 
 b)  Vote  on  Account  and  Interim  Budget 
 are not the same. 
 c)  An  Interim  Budget  gives  a  complete 
 ?nancial  statement,  similar  to  a  full 
 budget. 
 SSC CGL 21/04/2022 (Evening) 
 (a) Only a             (b) Only c 
 (c) a, b and c       (d) a and b 
 Sol.169.(c)  Budget  (Annual  ?nancial 
 statement,  Article  112)  is  a  statement  of 
 the  estimated  receipts  and  expenditure 
 of  the  government  in  a  ?nancial  year  (1 
 st 
 April  -  31 
 st 
 March).  A  vote-on-account  is 
 Parliament's  approval  to  the  Centre  for 
 withdrawal  of  money  from  the 
 Consolidated  Fund  of  India  for  a 
 speci?ed  expenditure  to  be  incurred  for  a 
 particular period. 
 Q.170.  The GDP de?ator is also called: 
 SSC CGL 21/04/2022 (Evening) 
 (a) implicit in?ation index 
 (b) explicit in?ation index 
 (c) implicit price de?ator 
 (d) explicit price de?ator 
 Sol.170.(c)  Implicit  price  de?ator  .  Gross 
 domestic  product  (GDP)  is  the  monetary 
 value  of  all  ?nished  goods  and  services 
 made  within  a  political  territory  during  a 
 speci?c period. 
 Q.171.  As  per  the  recommendations  of 
 the  National  Statistical  Commission,  the 
 Base  Year  of  the  GDP  Series  in  India  was 
 revised  from  2004-05  to  ______  with 
 effect from January 2015. 
 SSC MTS 06/10/2021 (Afternoon) 
 (a) 2011-12  (b) 2013-14 
 (c) 2005-06  (d) 2009-10 
 Sol.171.(a)  2011-12.  Base  Year  prices 
 are  being  used  to  calculate  the  real  GDP . 
 The  Base  Year  is  a  reference  period  that 
 provides  a  benchmark  against  which 
 price  changes  of  goods  and  services  are 
 measured. 
 Q.172.  Ronald  Reagan,  the  40th 
 President  of  the  US,  signed  the  largest 
 tax  cut  in  the  history  of  their  country  in 
 1981. Which economic theory was this 
 policy centred around? 
 SSC MTS 06/10/2021 (Evening) 
 (a) Laffer Curve 
 (b) Lorenz Curve 
 (c) Kuznets Curve 
 (d) Sweezy's Kinked Demand Curve 
 Sol.172.(a)  Laffer  Curve  is  a  graphic 
 representation  of  the  relationship 
 between  rates  of  taxation  and  the 
 resulting levels of government revenue. 
 Q.173.  In  which  year  was  the  Value 
 Added Tax introduced in India? 
 SSC MTS 08/10/2021 (Afternoon) 
 (a) 2007   (b) 2005    (c) 2002     (d) 2010 
 Sol.173.(b)  2005  .  Value  added  tax  (VAT, 
 Indirect  tax)  is  an  added  amount  on  the 
 purchase  of  an  article  that  increases  the 
 price  of  that  item  at  each  stage  of 
 production  to  distribution.  Since  2017,  it 
 get  subsumed  under  Goods  and  services 
 tax. 
 Q.174.  Which  of  the  following  items  does 
 NOT  directly  affect  the  Current  Account 
 Balance of India? 
 SSC MTS 11/10/2021 (Evening) 
 (a) Net income abroad 
 (b) Foreign aid 
 (c) Trade gap 
 (d) Revenue income 
 Sol.174.(d)  Revenue  income  .  The  5 
 major  sources  of  revenue  for  the 
 Government  are  Goods  and  Services  Tax 
 (GST),  Income  tax,  corporation  tax, 
 non-tax revenues, union excise duties. 
 Q.175.  The  Union  Budget,  2020-21, 
 increased  deposit  insurance  coverage  for 
 bank  deposits  to  ?  ____  (lakhs)per 
 depositor. 
 SSC MTS 22/10/2021 (Afternoon) 
 (a) 1  (b) 2       (c) 5  (d) 3 
 Sol.175.(c) 5 Lakhs.  Deposit Insurance 
 provided  by  the  Deposit  Insurance  and 
 Credit  Guarantee  Corporation  (DICGC),  a 
 wholly  owned  subsidiary  of  the  Reserve 
 Bank  of  India  (RBI).  It  provides  deposit 
 insurance  that  works  as  a  protection 
 cover  for  bank  deposit  holders  when  the 
 bank fails to pay its depositors. 
 Q.176.  Which of the following sectors of 
 the  economy  has  the  highest  share  in 
 India's GDP ? 
 SSC CHSL 12/10/2020 (Afternoon) 
 (a) Agriculture  (b) Industrial 
 (c) Manufacturing   (d) Service 
 Sol.176.(d)  Services  sector  .  Example  of 
 Services  sector  -  banking,  insurance, 
 ?nance etc. 
 Q.177.  Who  among  the  following 
 publishes the Economic Survey of India ? 
 SSC CGL 03/03/2020 (Evening) 
 (a) Ministry of Finance 
 (b) Indian Statistical Institute 
 (c) National Development Council 
 (d) Institute of ?nance 
 Sol.177.(a)  Ministry  of  Finance  .  The 
 Department  of  Economic  Affairs, 
 Ministry  of  Finance  presents  the  survey 
 in  parliament  every  year,  just  before  the 
 union budget. 
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 Pinnacle  Economics 
 Money Banking and Financial 
 Institutions 
 Q.178.  Who  issued  guidelines  for  the 
 micro?nance institutions in India? 
 SSC CHSL Tier II  10/01/2024 
 (a) Finance Ministry 
 (b) NABARD 
 (c) State Government 
 (d) Reserve Bank of India 
 Sol.178.(d)  Reserve  Bank  of  India. 
 Micro?nance  institution  -  An  organisation 
 that  offers  microloans,  microsavings  and 
 microinsurance  services  to  low  income 
 populations.  In  India,  loans  below  one 
 lakh  rupees  are  de?ned  as  microloans. 
 The  RBI  de?ned  micro?nance  as 
 collateral  free  loans  given  to  households 
 having annual income up to Rs. 3 lakh. 
 Q.179.  The  Reserve  Bank  of  India  was 
 established in: 
 SSC CHSL Tier II  02/11/2023 
 (a) 1930    (b) 1951   (c) 1948   (d) 1935 
 Sol.179.(d)  1935.  The  Reserve  Bank  of 
 India  was  established  on  April  1,1935  in 
 accordance  with  the  provisions  of  the 
 Reserve  Bank  of  India  Act,  1934.  The 
 Central  O?ce  of  the  Reserve  Bank  was 
 initially  established  in  Kolkata  but  was 
 permanently  moved  to  Mumbai  in  1937. 
 Few  other  banks  and  their  establishment 
 years:  Bank  of  India  -  1906,  Central  Bank 
 of  India  -  1911,  Punjab  National  Bank  - 
 1894. 
 Q.180.  When  RBI  decides  to  decrease  the 
 repo  rate,  money  supply  will  _________  .SSC 
 Stenographer 12/10/2023 (Morning) 
 (a) decrease 
 (b) increase 
 (c) remain unaffected 
 (d) initially stay constant and then 
 decrease 
 Sol.180.(b)  increase.  Repo  rate  :-  It 
 refers  to  the  rate  at  which  commercial 
 banks  borrow  money  by  selling  their 
 securities  to  the  Reserve  bank  of  india 
 (RBI)  to  maintain  liquidity,  in  case  of 
 shortage  of  funds  or  due  to  some 
 statutory  measures.  It  is  one  of  the  main 
 tools  of  RBI  to  keep  in?ation  under 
 control.  If  Repo  Rate  increases  then 
 money supply will decrease. 
 Q.181.  The  Reserve  Bank  of  India  was 
 nationalised on ________. 
 SSC Stenographer 12/10/2023 (Morning) 
 (a) March 1, 1949       (b) January 1, 1949 
 (c) October 1, 1949    (d) April 1, 1949 
 Sol.181.(b) January 1, 1949. 
 The  Reserve  Bank  of  India  (RBI)  was 
 established  on  1  April  1935.  It  was  set  up 
 on  the  basis  of  the  recommendations  of 
 the  ‘Hilton  Young  Commission’  (1926) 
 and  under  RBI  Act  1934.  The  ?rst  Indian 
 Governor  of  the  RBI  was  CD  Deshmukh. 
 Twenty-?fth  governor:  Shaktikanta  Das. 
 Headquarter - Mumbai (Maharashtra). 
 Q.182.  For  providing  a  non-micro?nance 
 loan  to  a  low-income  household,  there  is 
 a  limit  of  ____________  on  monthly  loan 
 repayment  obligations  of  a  household  as 
 a  percentage  of  monthly  household 
 income. 
 SSC Stenographer 12/10/2023 (Afternoon) 
 (a) 25%     (b) 50%       (c) 75%     (d) 40% 
 Sol.182.(b)  50%.  This  limit  is  set  by  the 
 Reserve  Bank  of  India  (RBI)  to  protect 
 low-income  households  from 
 over-indebtedness. 
 Q.183.  ________  is  an  instrument  under 
 the  Liquidity  Adjustment  Facility  (LAF)  at 
 which RBI lends to commercial banks. 
 SSC Stenographer 12/10/2023 (Evening) 
 (a) Repo rate          (b) Reverse repo rate 
 (c) Bank rate           (d) Cash reserve ratio 
 Sol.183.(a)  Repo  rate.  Reverse  repo  rate 
 -  The  rate  at  which  the  central  bank  of  a 
 country  borrows  money  from 
 commercial  banks.  Bank  rate  -  It  is  a  rate 
 at  which  the  Reserve  Bank  of  India  (RBI) 
 provides  the  loan  to  commercial  banks 
 without  keeping  any  security.  Cash 
 reserve  ratio  -  The  percentage  of  a  bank's 
 total  deposits  that  it  needs  to  maintain 
 as liquid cash. 
 Q.184.  The  maximum  limit  on 
 micro?nance  loans  for  NBFCs  other  than 
 NBFC-MFIs is_________ . 
 SSC Stenographer 13/10/2023 (Morning) 
 (a) 75% of the total assets 
 (b) 25% of the total assets 
 (c) 85% of the total loans 
 (d) 25% of the total equity 
 Sol.184.(b)  25%  of  the  total  assets.  The 
 minimum  and  maximum  interest  rate 
 cannot  be  more  than  4%.  NBFC-MFI  is 
 required  to  maintain  not  less  than  85%  of 
 its net assets as qualifying assets. 
 Q.185.  In  the  concept  of  money  supply, 
 M4 refers to ________. 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) currency with the public 
 (b) M1+ post o?ce saving deposits 
 (c) M3+ total post o?ce deposits 
 (d) M1+ time deposits of the public with 
 banks 
 Sol.185.(c) M3+ total post o?ce 
 deposits.  The  Reserve  Bank  of  India 
 (RBI)  releases  data  for  four  different 
 metrics  representing  money  supply, 
 namely  M1,  M2,  M3,  and  M4.  M2  =  M1  + 
 Savings  deposits  with  Post  O?ce 
 savings  banks.  M3  =  M1  +  Net  time 
 deposits of commercial banks. 
 Q.186.  Identify  the  correct  statement  in 
 the context of money supply 
 (i)  Money  supply  refers  to  the  total 
 volume  of  money  held  by  public  at  a 
 particular point of time 
 (ii)  Money supply is a ?ow concept 
 (iii)  M1  is  the  most  liquid  measure  of 
 money supply 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) Only (ii)                   (b) Only (i) 
 (c) Only (ii) and (iii)     (d) Only (i) and (iii) 
 Sol.186.(d)  Only  (i)  and  (iii).  The  money 
 supply  is  the  entire  stock  of  currency  and 
 other  liquid  instruments  in  a  country's 
 economy  as  of  a  particular  time.  M1,  M2, 
 M3,  M4  is  the  measure  of  money  supply. 
 M1  is  the  most  liquid  and  makes 
 transactions  the  easiest,  while  M4  is  the 
 least  liquid.  M1,  M2  -  Narrow  Money.  M3, 
 M4  -  Broad  Money.  M1  =  Currency  with 
 the  public  +  Demand  deposits  in  bank  + 
 Other  deposits  with  RBI.  M4  =  M3  +  Total 
 Deposits  with  Post  O?ce  Savings 
 Organisation. 
 Q.187.  Which  of  the  following  is  a 
 function  performed  by  commercial  banks 
 in India? 
 SSC Stenographer 13/10/2023 (Evening) 
 (a) Credit creation 
 (b) Issue of currency 
 (c) Banking facilities to the government 
 (d) Credit control 
 Sol.187.(a)  Credit  creation  -  Process  by 
 which  commercial  banks  create  new 
 money  by  lending  to  businesses  and 
 individuals. 
 Q.188.  In  India  all  loans  that  are  below 
 _______ are considered as micro loans. 
 SSC CPO 03/10/2023 (Morning) 
 (a) one lakh rupees  (b) four lakh rupees 
 (c) two lakh rupees  (d) three lakh rupees 
 Sol.188.(a) one lakh rupees. 
 Non-Banking  Financial  Company  -  Micro 
 Finance  Institution  (NBFC-MFI):  A  type  of 
 ?nancial  institution  that  provides 
 ?nancial  services,  including  microloans 
 and  other  ?nancial  products,  to 
 low-income  and  economically  vulnerable 
 individuals,  especially  in  rural  and 
 underserved  areas.  The  regulator  of 
 Micro  Finance  in  India  is  the  Reserve 
 Bank of India. 
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Page 4


 Pinnacle  Economics 
 Q.151.  Who  among  the  following  headed 
 the National Income Committee? 
 SSC CGL 12/12/2022 (2nd Shift) 
 (a) PC Mahalanobis   (b) VKRV Rao 
 (c) DR Gadgil               (d) BR Ambedkar 
 Sol.151.(a)  PC  Mahalanobis  (chairman 
 of  Indian  Statistical  Institute).  The 
 National  Income  Committee  (NIC) 
 (1949)  calculated  the  National  Income  of 
 India  and  compiled  statistics.  Members 
 of NIC : VKRV Rao and DR Gadgil. 
 Q.152.  The  difference  between  a 
 farmer's  output  over  and  above  his 
 on-farm consumption is known as ______. 
 SSC CPO  09/11/2022 (Evening) 
 (a) consumer surplus 
 (b) marketable surplus 
 (c) foreign consumption 
 (d) domestic consumption 
 Sol.152.(b)  Marketable  Surplus. 
 Consumer  surplus,  also  called  social 
 surplus,  occurs  when  the  price 
 consumers  pay  for  a  product  or  service 
 is  less  than  the  price  they  are  willing  to 
 pay.  Domestic  consumption  products 
 and  services  that  are  bought  and  used  in 
 the country that makes them. 
 Q.153.  In  1950-51,  what  percentage  of 
 GDP  of  India  was  contributed  by  the 
 industrial sector? 
 SSC CPO 10/11/2022 (Evening) 
 (a) 22  %  (b) 28  %  (c) 13  %  (d) 16  % 
 Sol.153.(c)  13%.  GDP  (Gross  Domestic 
 Product)  Agriculture  sector  -  59%  of  GDP 
 in (1950-51). 
 Q.154.  Which  of  the  following 
 commodities are exempted from GST? 
 SSC CPO 11/11/2022 (Afternoon) 
 (a) Hand sanitisers 
 (b) Pens 
 (c) Alcohol for human consumption 
 (d) Ventilators 
 Sol.154.(c)  Alcohol  for  human 
 consumption  .  Other  Goods  not  covered 
 under  Goods  and  Services  Tax  (GST): 
 Petrol,  high-speed  diesel,  aviation  turbine 
 fuel,  crude  oil,  Electricity,  and  Natural 
 Gas.  GST  {The  Constitution  122nd 
 Amendment  Bill  (2014),  101st 
 Amendment  Act  (2016),  Article  246A 
 (Special  Provision  for  GST),  Article  269A 
 (Levy  and  Collection  of  GST  for 
 Inter-State  Supply),  Article  279A  (GST 
 Council),  Article  286  (Restrictions  on  Tax 
 Imposition)}. 
 Q.155.  When  tax  collection  exceeds  the 
 required  expenditure,  the  budget  is  said 
 to be in ______. 
 SSC MTS 14/07/2022 (Afternoon) 
 (a) de?cit                          (b) surplus 
 (c) economic spread      (d) balance 
 Sol.155.(b) Surplus.  Balanced Budget  – 
 if  the  expected  expenditure  is  equal  to 
 the  anticipated  receipts  for  a  ?scal  year. 
 Surplus  Budget  –  If  the  expected 
 revenues  surpass  the  estimated 
 expenditure  for  a  particular  business 
 year. 
 Q.156.  The  tax  imposed  on  goods 
 imported  into  and  exported  out  of  India 
 is called _____. 
 SSC MTS 22/07/2022 (Afternoon) 
 (a) corporation tax       (b) excise tax 
 (c) capital gain tax       (d) custom duty 
 Sol.156.(d)  Customs  duty  refers  to  the 
 tax  imposed  on  goods  when  they  are 
 transported  across  international  borders. 
 An  Excise  tax  is  any  duty  on 
 manufactured  goods  that  is  levied  at  the 
 moment  of  manufacture  rather  than  at 
 sale. 
 Q.157.  Lack  of  ?nancial  discipline  by  the 
 government can lead to ______________. 
 (A) excess expenditure 
 (B) in?ation 
 SSC CHSL 26/05/2022 ( Morning) 
 (a) Only B  (b) Only A 
 (c) A and B  (d) Neither A nor B 
 Sol.157.(c)  A  and  B.  Lack  of  ?nancial 
 discipline  by  the  government  can  lead  to 
 excess  expenditure  and  in?ation. 
 In?ation  is  a  decrease  in  the  purchasing 
 power  of  money,  re?ected  in  a  general 
 increase in the prices of goods and 
 services in an economy. 
 Q.158.  GDP  that  takes  into  account  the 
 costs  in  terms  of  environmental  pollution 
 and  exploitation  of  natural  resources  is 
 called __________. 
 SSC CHSL 27/05/2022 (Evening) 
 (a) white GDP  (b) green GDP 
 (c) brown GDP  (d) blue GDP 
 Sol.158.(b)  The  Green  Gross  Domestic 
 Product  is  an  indicator  of  economic 
 growth  with  environmental  factors  taken 
 into  consideration  along  with  the 
 standard  GDP  of  a  country.  The  blue 
 economy  is  the  "sustainable  use  of 
 ocean  resources  for  economic  growth, 
 improved  livelihoods,  and  jobs  while 
 preserving  the  health  of  the  ocean 
 ecosystem." 
 Q.159.  NDP at FC = GDP at FC minus ___. 
 SSC CHSL 30/05/2022 (Morning) 
 (a) depreciation 
 (b) indirect taxes 
 (c) net factor income from abroad 
 (d) subsidies 
 Sol.159.(a) Depreciation  . 
 Q.160.  Which  of  the  following  angles  of 
 the  ?ow  of  factor  payments  forms  the 
 basis to estimate the national income? 
 SSC CHSL 30/05/2022 (Afternoon) 
 (a) Consumption angle 
 (b) Expenditure angle 
 (c) Income distribution angle 
 (d) Production angle 
 Sol.160.(c)  Income  distribution  angle 
 forms  the  basis  to  estimate  the  National 
 income.  National  income  is  the  sum  of 
 all  the  factor  income  that  is  generated 
 during a production year. 
 Q.161.  What  is  the  domestic  income  if 
 national  income  is  ?10,000  crore  and  net 
 factor  income  from  abroad  is  ?2,000 
 crore? 
 SSC CHSL 02/06/2022 (Morning) 
 (a) ?5,000 crore  (b) ?12,000 crore 
 (c) ?10,000 crore  (d) ?8,000 crore 
 Sol.161.(d)  ?8,000  crore  .  Domestic 
 income  =  National  Income  -  Net  factor 
 income  from  abroad.  Domestic  income= 
 ?10000- ?2000= ?8,000 crore. 
 Q.162.  To  combat  in?ation,  what  is  the 
 usual monetary policy stance adopted? 
 SSC CHSL 03/06/2022 (Afternoon) 
 (a) Owlish  (b) Dovish 
 (c) Hicksian  (d) Hawkish 
 Sol.162.(d) Hawkish stance  - To combat 
 in?ation,  the  central  bank  is  willing  to 
 hike  interest  rates  to  curb  the  money 
 supply  and  thus  reduce  the  demand. 
 Accommodative  stance  -  Central  bank  is 
 prepared  to  expand  the  money  supply  by 
 cutting  interest  rates  to  boost  economic 
 growth.  Neutral  stance  -  Central  banks 
 can either cut-rate or increase the rate. 
 Q.163.  Which  of  the  following 
 statements is/are correct? 
 I.  Only  marketed  goods  are  considered 
 while  estimating  Gross  Domestic 
 Product(GDP). 
 II.  The  work  done  by  a  woman  at  her 
 home  is  outside  the  purview  of  Gross 
 Domestic Product. 
 III.  In estimating GDP , only ?nal goods 
 and services are considered. 
 SSC CGL 11/04/2022 (Morning) 
 (a) Only II and III  (b) I, II and III 
 (c) Only I and III  (d) Only II 
 Sol.163.(b)  I, II and III. 
 Q.164.  The  value  of  the  Gross  Domestic 
 Product  (GDP)  of  India  is  published  by 
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 Pinnacle  Economics 
 PIB in ______. 
 SSC CGL 12/04/2022 (Morning) 
 (a) US Dollar  (b) Yen 
 (c) Yuan  (d) Indian Rupee 
 Sol.164.(d)  Indian  Rupee.  GDP  is  de?ned 
 by  the  following  formula  :  GDP  = 
 Consumption  +  Investment  + 
 Government Spending  +  Net Exports. 
 Q.165.  In  which  year  did  India's  ratio  of 
 public  debt  to  GDP  go  up  to  a  record 
 84.2% ? 
 SSC CGL 12/04/2022 (Afternoon) 
 (a) 1991   (b) 1999   (c) 2003   (d) 2001 
 Sol.165.(c)  2003. 
 Q.166.  ______  is  a  tax  system  that 
 collects  a  greater  share  of  income  from 
 those  with  high  incomes  than  from  those 
 with lower incomes. 
 SSC CGL 12/04/2022 (Evening) 
 (a) Proportional tax  (b) Regressive tax 
 (c) Payroll tax            (d) Progressive tax 
 Sol.166.(d)  Progressive  tax  is  a  tax 
 system  that  collects  a  greater  share  of 
 income  from  those  with  high  incomes 
 than  from  those  with  lower  incomes. 
 Payroll  tax  can  be  de?ned  as  the  tax  that 
 is  withheld,  charged,  or  levied  on  the 
 payroll of the employer. 
 Q.167.  According  to  the  Output  Method, 
 GDP is calculated as: 
 SSC CGL 13/04/2022 (Evening) 
 (a) GDP at Constant Prices – Taxes + 
 Subsidies 
 (b) GDP at Constant Prices + Subsidies 
 (c) GDP at Constant Prices – Taxes 
 (d) GDP at Constant Prices + Taxes – 
 Subsidies 
 Sol.167.(a)  GDP  at  Constant  Prices  – 
 Taxes  +  Subsidies  .  GDP  can  be 
 calculated in three ways, using 
 expenditures, production, or incomes. 
 Q.168.  Which  of  the  following  is  India’s 
 ?rst Paperless Budget? 
 SSC CGL 18/04/2022 (Morning) 
 (a) Union Budget 2018-19 
 (b) Union Budget 2020-21 
 (c) Union Budget 2019-20 
 (d) Union Budget 2021-22 
 Sol.168.(d)  Union  Budget  2021-22. 
 Finance  Minister  Nirmala  Sitharaman 
 presented the ?rst paperless budget. 
 Q.169.  Which  of  the  given  statements 
 about the Union Budget is/are true? 
 a)  Vote  on  Account  deals  only  with  the 
 expenditure  side  of  the  government 
 budget. 
 b)  Vote  on  Account  and  Interim  Budget 
 are not the same. 
 c)  An  Interim  Budget  gives  a  complete 
 ?nancial  statement,  similar  to  a  full 
 budget. 
 SSC CGL 21/04/2022 (Evening) 
 (a) Only a             (b) Only c 
 (c) a, b and c       (d) a and b 
 Sol.169.(c)  Budget  (Annual  ?nancial 
 statement,  Article  112)  is  a  statement  of 
 the  estimated  receipts  and  expenditure 
 of  the  government  in  a  ?nancial  year  (1 
 st 
 April  -  31 
 st 
 March).  A  vote-on-account  is 
 Parliament's  approval  to  the  Centre  for 
 withdrawal  of  money  from  the 
 Consolidated  Fund  of  India  for  a 
 speci?ed  expenditure  to  be  incurred  for  a 
 particular period. 
 Q.170.  The GDP de?ator is also called: 
 SSC CGL 21/04/2022 (Evening) 
 (a) implicit in?ation index 
 (b) explicit in?ation index 
 (c) implicit price de?ator 
 (d) explicit price de?ator 
 Sol.170.(c)  Implicit  price  de?ator  .  Gross 
 domestic  product  (GDP)  is  the  monetary 
 value  of  all  ?nished  goods  and  services 
 made  within  a  political  territory  during  a 
 speci?c period. 
 Q.171.  As  per  the  recommendations  of 
 the  National  Statistical  Commission,  the 
 Base  Year  of  the  GDP  Series  in  India  was 
 revised  from  2004-05  to  ______  with 
 effect from January 2015. 
 SSC MTS 06/10/2021 (Afternoon) 
 (a) 2011-12  (b) 2013-14 
 (c) 2005-06  (d) 2009-10 
 Sol.171.(a)  2011-12.  Base  Year  prices 
 are  being  used  to  calculate  the  real  GDP . 
 The  Base  Year  is  a  reference  period  that 
 provides  a  benchmark  against  which 
 price  changes  of  goods  and  services  are 
 measured. 
 Q.172.  Ronald  Reagan,  the  40th 
 President  of  the  US,  signed  the  largest 
 tax  cut  in  the  history  of  their  country  in 
 1981. Which economic theory was this 
 policy centred around? 
 SSC MTS 06/10/2021 (Evening) 
 (a) Laffer Curve 
 (b) Lorenz Curve 
 (c) Kuznets Curve 
 (d) Sweezy's Kinked Demand Curve 
 Sol.172.(a)  Laffer  Curve  is  a  graphic 
 representation  of  the  relationship 
 between  rates  of  taxation  and  the 
 resulting levels of government revenue. 
 Q.173.  In  which  year  was  the  Value 
 Added Tax introduced in India? 
 SSC MTS 08/10/2021 (Afternoon) 
 (a) 2007   (b) 2005    (c) 2002     (d) 2010 
 Sol.173.(b)  2005  .  Value  added  tax  (VAT, 
 Indirect  tax)  is  an  added  amount  on  the 
 purchase  of  an  article  that  increases  the 
 price  of  that  item  at  each  stage  of 
 production  to  distribution.  Since  2017,  it 
 get  subsumed  under  Goods  and  services 
 tax. 
 Q.174.  Which  of  the  following  items  does 
 NOT  directly  affect  the  Current  Account 
 Balance of India? 
 SSC MTS 11/10/2021 (Evening) 
 (a) Net income abroad 
 (b) Foreign aid 
 (c) Trade gap 
 (d) Revenue income 
 Sol.174.(d)  Revenue  income  .  The  5 
 major  sources  of  revenue  for  the 
 Government  are  Goods  and  Services  Tax 
 (GST),  Income  tax,  corporation  tax, 
 non-tax revenues, union excise duties. 
 Q.175.  The  Union  Budget,  2020-21, 
 increased  deposit  insurance  coverage  for 
 bank  deposits  to  ?  ____  (lakhs)per 
 depositor. 
 SSC MTS 22/10/2021 (Afternoon) 
 (a) 1  (b) 2       (c) 5  (d) 3 
 Sol.175.(c) 5 Lakhs.  Deposit Insurance 
 provided  by  the  Deposit  Insurance  and 
 Credit  Guarantee  Corporation  (DICGC),  a 
 wholly  owned  subsidiary  of  the  Reserve 
 Bank  of  India  (RBI).  It  provides  deposit 
 insurance  that  works  as  a  protection 
 cover  for  bank  deposit  holders  when  the 
 bank fails to pay its depositors. 
 Q.176.  Which of the following sectors of 
 the  economy  has  the  highest  share  in 
 India's GDP ? 
 SSC CHSL 12/10/2020 (Afternoon) 
 (a) Agriculture  (b) Industrial 
 (c) Manufacturing   (d) Service 
 Sol.176.(d)  Services  sector  .  Example  of 
 Services  sector  -  banking,  insurance, 
 ?nance etc. 
 Q.177.  Who  among  the  following 
 publishes the Economic Survey of India ? 
 SSC CGL 03/03/2020 (Evening) 
 (a) Ministry of Finance 
 (b) Indian Statistical Institute 
 (c) National Development Council 
 (d) Institute of ?nance 
 Sol.177.(a)  Ministry  of  Finance  .  The 
 Department  of  Economic  Affairs, 
 Ministry  of  Finance  presents  the  survey 
 in  parliament  every  year,  just  before  the 
 union budget. 
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 Pinnacle  Economics 
 Money Banking and Financial 
 Institutions 
 Q.178.  Who  issued  guidelines  for  the 
 micro?nance institutions in India? 
 SSC CHSL Tier II  10/01/2024 
 (a) Finance Ministry 
 (b) NABARD 
 (c) State Government 
 (d) Reserve Bank of India 
 Sol.178.(d)  Reserve  Bank  of  India. 
 Micro?nance  institution  -  An  organisation 
 that  offers  microloans,  microsavings  and 
 microinsurance  services  to  low  income 
 populations.  In  India,  loans  below  one 
 lakh  rupees  are  de?ned  as  microloans. 
 The  RBI  de?ned  micro?nance  as 
 collateral  free  loans  given  to  households 
 having annual income up to Rs. 3 lakh. 
 Q.179.  The  Reserve  Bank  of  India  was 
 established in: 
 SSC CHSL Tier II  02/11/2023 
 (a) 1930    (b) 1951   (c) 1948   (d) 1935 
 Sol.179.(d)  1935.  The  Reserve  Bank  of 
 India  was  established  on  April  1,1935  in 
 accordance  with  the  provisions  of  the 
 Reserve  Bank  of  India  Act,  1934.  The 
 Central  O?ce  of  the  Reserve  Bank  was 
 initially  established  in  Kolkata  but  was 
 permanently  moved  to  Mumbai  in  1937. 
 Few  other  banks  and  their  establishment 
 years:  Bank  of  India  -  1906,  Central  Bank 
 of  India  -  1911,  Punjab  National  Bank  - 
 1894. 
 Q.180.  When  RBI  decides  to  decrease  the 
 repo  rate,  money  supply  will  _________  .SSC 
 Stenographer 12/10/2023 (Morning) 
 (a) decrease 
 (b) increase 
 (c) remain unaffected 
 (d) initially stay constant and then 
 decrease 
 Sol.180.(b)  increase.  Repo  rate  :-  It 
 refers  to  the  rate  at  which  commercial 
 banks  borrow  money  by  selling  their 
 securities  to  the  Reserve  bank  of  india 
 (RBI)  to  maintain  liquidity,  in  case  of 
 shortage  of  funds  or  due  to  some 
 statutory  measures.  It  is  one  of  the  main 
 tools  of  RBI  to  keep  in?ation  under 
 control.  If  Repo  Rate  increases  then 
 money supply will decrease. 
 Q.181.  The  Reserve  Bank  of  India  was 
 nationalised on ________. 
 SSC Stenographer 12/10/2023 (Morning) 
 (a) March 1, 1949       (b) January 1, 1949 
 (c) October 1, 1949    (d) April 1, 1949 
 Sol.181.(b) January 1, 1949. 
 The  Reserve  Bank  of  India  (RBI)  was 
 established  on  1  April  1935.  It  was  set  up 
 on  the  basis  of  the  recommendations  of 
 the  ‘Hilton  Young  Commission’  (1926) 
 and  under  RBI  Act  1934.  The  ?rst  Indian 
 Governor  of  the  RBI  was  CD  Deshmukh. 
 Twenty-?fth  governor:  Shaktikanta  Das. 
 Headquarter - Mumbai (Maharashtra). 
 Q.182.  For  providing  a  non-micro?nance 
 loan  to  a  low-income  household,  there  is 
 a  limit  of  ____________  on  monthly  loan 
 repayment  obligations  of  a  household  as 
 a  percentage  of  monthly  household 
 income. 
 SSC Stenographer 12/10/2023 (Afternoon) 
 (a) 25%     (b) 50%       (c) 75%     (d) 40% 
 Sol.182.(b)  50%.  This  limit  is  set  by  the 
 Reserve  Bank  of  India  (RBI)  to  protect 
 low-income  households  from 
 over-indebtedness. 
 Q.183.  ________  is  an  instrument  under 
 the  Liquidity  Adjustment  Facility  (LAF)  at 
 which RBI lends to commercial banks. 
 SSC Stenographer 12/10/2023 (Evening) 
 (a) Repo rate          (b) Reverse repo rate 
 (c) Bank rate           (d) Cash reserve ratio 
 Sol.183.(a)  Repo  rate.  Reverse  repo  rate 
 -  The  rate  at  which  the  central  bank  of  a 
 country  borrows  money  from 
 commercial  banks.  Bank  rate  -  It  is  a  rate 
 at  which  the  Reserve  Bank  of  India  (RBI) 
 provides  the  loan  to  commercial  banks 
 without  keeping  any  security.  Cash 
 reserve  ratio  -  The  percentage  of  a  bank's 
 total  deposits  that  it  needs  to  maintain 
 as liquid cash. 
 Q.184.  The  maximum  limit  on 
 micro?nance  loans  for  NBFCs  other  than 
 NBFC-MFIs is_________ . 
 SSC Stenographer 13/10/2023 (Morning) 
 (a) 75% of the total assets 
 (b) 25% of the total assets 
 (c) 85% of the total loans 
 (d) 25% of the total equity 
 Sol.184.(b)  25%  of  the  total  assets.  The 
 minimum  and  maximum  interest  rate 
 cannot  be  more  than  4%.  NBFC-MFI  is 
 required  to  maintain  not  less  than  85%  of 
 its net assets as qualifying assets. 
 Q.185.  In  the  concept  of  money  supply, 
 M4 refers to ________. 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) currency with the public 
 (b) M1+ post o?ce saving deposits 
 (c) M3+ total post o?ce deposits 
 (d) M1+ time deposits of the public with 
 banks 
 Sol.185.(c) M3+ total post o?ce 
 deposits.  The  Reserve  Bank  of  India 
 (RBI)  releases  data  for  four  different 
 metrics  representing  money  supply, 
 namely  M1,  M2,  M3,  and  M4.  M2  =  M1  + 
 Savings  deposits  with  Post  O?ce 
 savings  banks.  M3  =  M1  +  Net  time 
 deposits of commercial banks. 
 Q.186.  Identify  the  correct  statement  in 
 the context of money supply 
 (i)  Money  supply  refers  to  the  total 
 volume  of  money  held  by  public  at  a 
 particular point of time 
 (ii)  Money supply is a ?ow concept 
 (iii)  M1  is  the  most  liquid  measure  of 
 money supply 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) Only (ii)                   (b) Only (i) 
 (c) Only (ii) and (iii)     (d) Only (i) and (iii) 
 Sol.186.(d)  Only  (i)  and  (iii).  The  money 
 supply  is  the  entire  stock  of  currency  and 
 other  liquid  instruments  in  a  country's 
 economy  as  of  a  particular  time.  M1,  M2, 
 M3,  M4  is  the  measure  of  money  supply. 
 M1  is  the  most  liquid  and  makes 
 transactions  the  easiest,  while  M4  is  the 
 least  liquid.  M1,  M2  -  Narrow  Money.  M3, 
 M4  -  Broad  Money.  M1  =  Currency  with 
 the  public  +  Demand  deposits  in  bank  + 
 Other  deposits  with  RBI.  M4  =  M3  +  Total 
 Deposits  with  Post  O?ce  Savings 
 Organisation. 
 Q.187.  Which  of  the  following  is  a 
 function  performed  by  commercial  banks 
 in India? 
 SSC Stenographer 13/10/2023 (Evening) 
 (a) Credit creation 
 (b) Issue of currency 
 (c) Banking facilities to the government 
 (d) Credit control 
 Sol.187.(a)  Credit  creation  -  Process  by 
 which  commercial  banks  create  new 
 money  by  lending  to  businesses  and 
 individuals. 
 Q.188.  In  India  all  loans  that  are  below 
 _______ are considered as micro loans. 
 SSC CPO 03/10/2023 (Morning) 
 (a) one lakh rupees  (b) four lakh rupees 
 (c) two lakh rupees  (d) three lakh rupees 
 Sol.188.(a) one lakh rupees. 
 Non-Banking  Financial  Company  -  Micro 
 Finance  Institution  (NBFC-MFI):  A  type  of 
 ?nancial  institution  that  provides 
 ?nancial  services,  including  microloans 
 and  other  ?nancial  products,  to 
 low-income  and  economically  vulnerable 
 individuals,  especially  in  rural  and 
 underserved  areas.  The  regulator  of 
 Micro  Finance  in  India  is  the  Reserve 
 Bank of India. 
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 Pinnacle  Economics 
 Q.189.  Which  of  the  following 
 micro?nance  institutions  was 
 established  in  India  at  the  time  of 
 independence? 
 SSC CPO 03/10/2023 (Afternoon) 
 (a) Self Help Group 
 (b) Grameen Model Bank 
 (c) Rural Cooperatives 
 (d) Joint Liability Group 
 Sol.189.(c)  Rural  Cooperatives. 
 Micro?nance  Institutions  -  Financial 
 companies  that  provide  small  loans  to 
 people  who  do  not  have  any  access  to 
 banking  facilities.  Bandhan  Bank  became 
 the  ?rst  micro?nance  company  to  get  a 
 bank  licence  in  2014.  Grameen  Model 
 Bank  -  It  was  the  brainchild  of  Nobel 
 Laureate  Prof.  Muhammad  Yunus  in 
 Bangladesh in the 1970s. 
 Q.190.  Which  of  the  following  options  is 
 not an example of small savings? 
 SSC CPO 05/10/2023 (Morning) 
 (a) Mutual Funds 
 (b) Kisan Vikas Patras 
 (c) National Savings Certi?cates 
 (d) Post O?ce Deposits 
 Sol.190.(a)  Mutual  Funds  -  A  mutual 
 fund  is  a  type  of  investment  vehicle 
 consisting  of  a  portfolio  of  stocks, 
 bonds,  or  other  securities.  The  mutual 
 funds  in  India  are  regulated  by  the 
 Securities  and  Exchange  Board  of  India 
 (SEBI)  and  the  Reserve  Bank  of  India 
 (RBI).  The  Government  of  India  set  up  the 
 ?rst  mutual  fund  by  an  Act  of  Parliament 
 in 1963. 
 Q.191.  What  is  the  difference  between  a 
 debit card and a credit card ? 
 SSC MTS 01/09/2023 (1st Shift) 
 (a) Debit cards are used for online 
 transactions, while credit cards are 
 used for in-person purchases. 
 (b) Credit cards require a PIN, while debit 
 cards require a signature. 
 (c) Debit cards withdraw money directly 
 from a bank account, while credit 
 cards allow borrowing up to a certain 
 limit. 
 (d) Debit cards have higher interest rates 
 than credit cards. 
 Sol.191.(c)  Debit  cards  (Plastic  Money) 
 and  credit  cards  look  nearly  identical,  and 
 both  can  give  a  fast  and  convenient  way 
 to  pay  -  no  matter  whether  you’re  paying 
 in  person,  online  or  over  the  phone.  Using 
 a  debit  card  is  like  using  cash  in  hand,  as 
 you  can  spend  only  what  you  have.  But 
 credit  cards  come  with  a  credit  limit  that 
 is not dependent on bank balance. 
 Q.192.  Which  of  the  following  is  NOT  a 
 characteristic of money? 
 SSC MTS 04/09/2023 (1st Shift) 
 (a) Portability               (b) Perishability 
 (c) Divisibility               (d) Durability 
 Sol.192.(b)  Perishability  -  A 
 characteristic  of  products  and  services 
 that  do  not  allow  for  the  product  or 
 service  to  be  stored  for  sale  at  a  future 
 date.  Money  -  Any  object  that  is  generally 
 accepted  as  payment  for  goods  and 
 services  and  repayment  of  debts  in  a 
 given country or socio-economic context. 
 Q.193.  The  important  milestones  of  the 
 SHG  Bank  linkage  movement  was 
 spearheaded  by  __________  with  support 
 from RBI. 
 SSC MTS 04/09/2023 (3rd Shift) 
 (a) SEBI                    (b) Indian Bank 
 (c) NABARD            (d) Cooperative Bank 
 Sol.193.(c)  NABARD  (National  Bank  for 
 Agriculture  and  Rural  Development)  .  It  is 
 the  apex  banking  institution  to  provide 
 ?nance  for  Agriculture  and  rural 
 development.  The  SHG-Bank  Linkage 
 Programme  (SBLP)  was  initiated  as  an 
 action  research  by  the  NABARD  in  1989 
 and  was  subsequently  crystallised  into  a 
 pilot project in 1992. 
 Q.194.  What  is  a  dimension  related  to 
 the  sustainability  of  micro?nance 
 institutions in India? 
 SSC MTS 04/09/2023 (3rd Shift) 
 (a) Dependency on donor funding 
 (b) Limited social impact 
 (c) High-pro?t margins 
 (d) Excessive interest rates 
 Sol.194.(a)  Dependency  on  donor 
 funding.  Micro?nance  Institutions  in 
 India  -  Self  Help  Group  (SHG);  Joint 
 Liability  Group  (JLG)  and  Grameen  Model 
 Bank. 
 Q.195.  What  does  the  term  'interest'  refer 
 to in banking? 
 SSC MTS 05/09/2023 (1st Shift) 
 (a) The additional amount earned on a 
 loan or deposit 
 (b) The amount of money deposited into 
 a bank account 
 (c) The value of a currency in relation to 
 other currencies 
 (d) The fee charged for withdrawing 
 money from an ATM 
 Sol.195.(a)  Banking  Terminologies:  Repo 
 Rate:  The  interest  rate  at  which  a  nation's 
 central  bank  lends  money  to  commercial 
 banks  often  in  the  form  of  very 
 short-term loans. 
 Q.196.  What  is  the  main  role  of 
 commercial banks in the economy? 
 SSC MTS 05/09/2023 (2nd Shift) 
 (a) To promote economic growth and 
 development 
 (b) Regulating the stock market 
 (c) control on in?ation 
 (d) Management of foreign exchange 
 reserves 
 Sol.196.(a)  Other  functions  of 
 commercial  Banks  :  Accepting  Deposits 
 (Savings,  Currents,  Fixed),  Lend  money  to 
 people  and  businesses,  Provide  Locker 
 to  Customers,  Deals  with  foreign 
 exchanges  etc.  Commercial  Banks  are 
 regulated  by  Reserve  Bank  of  India  (RBI) 
 under  Banking  Regulation  Act,  1949. 
 Function  of  RBI  -  Management  of  foreign 
 exchange  reserves,  control  on  in?ation, 
 issues  notes,  serve  as  Bank  of 
 commercial Banks. 
 Q.197.  Which  of  the  following  is  a  key 
 objective  of  Micro  Finance  Institutions  in 
 India ? 
 SSC MTS 06/09/2023 (1st Shift) 
 (a) Providing loans exclusively to women 
 entrepreneurs 
 (b) Encouraging large-scale 
 industrialisation 
 (c) Maximising pro?ts for shareholders 
 (d) Promoting ?nancial inclusion and 
 poverty alleviation 
 Sol.197.(d)  MFIs  are  ?nancial  companies 
 that  provide  small  loans  to  people  who 
 do  not  have  any  access  to  banking 
 facilities.  The  de?nition  of  “small  loans” 
 varies  between  countries.  In  India,  all 
 loans  that  are  below  Rs.1  lakh  can  be 
 considered  as  microloans.  Types  of 
 institutions  that  offer  micro?nance  are: 
 Credit  unions,  Non  governmental 
 organisations,  Commercial  banks, 
 Cooperatives. 
 Q.198.  Which  of  the  following 
 statements  best  de?nes  a  Micro  Finance 
 Institution (MFI)? 
 SSC MTS 06/09/2023 (1st Shift) 
 (a) MFIs are investment ?rms that cater 
 exclusively to high-net-worth 
 individuals. 
 (b) MFIs are non-pro?t organisations that 
 provide ?nancial services to 
 low-income individuals and small 
 businesses. 
 (c) MFIs are banks that provide loans 
 only to large corporations. 
 (d) MFIs are government agencies that 
 regulate the micro?nance sector. 
 Sol.198.(b)  Micro?nance,  also  called 
 microcredit ,  is  a  type  of  banking  service 
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 Pinnacle  Economics 
 Q.151.  Who  among  the  following  headed 
 the National Income Committee? 
 SSC CGL 12/12/2022 (2nd Shift) 
 (a) PC Mahalanobis   (b) VKRV Rao 
 (c) DR Gadgil               (d) BR Ambedkar 
 Sol.151.(a)  PC  Mahalanobis  (chairman 
 of  Indian  Statistical  Institute).  The 
 National  Income  Committee  (NIC) 
 (1949)  calculated  the  National  Income  of 
 India  and  compiled  statistics.  Members 
 of NIC : VKRV Rao and DR Gadgil. 
 Q.152.  The  difference  between  a 
 farmer's  output  over  and  above  his 
 on-farm consumption is known as ______. 
 SSC CPO  09/11/2022 (Evening) 
 (a) consumer surplus 
 (b) marketable surplus 
 (c) foreign consumption 
 (d) domestic consumption 
 Sol.152.(b)  Marketable  Surplus. 
 Consumer  surplus,  also  called  social 
 surplus,  occurs  when  the  price 
 consumers  pay  for  a  product  or  service 
 is  less  than  the  price  they  are  willing  to 
 pay.  Domestic  consumption  products 
 and  services  that  are  bought  and  used  in 
 the country that makes them. 
 Q.153.  In  1950-51,  what  percentage  of 
 GDP  of  India  was  contributed  by  the 
 industrial sector? 
 SSC CPO 10/11/2022 (Evening) 
 (a) 22  %  (b) 28  %  (c) 13  %  (d) 16  % 
 Sol.153.(c)  13%.  GDP  (Gross  Domestic 
 Product)  Agriculture  sector  -  59%  of  GDP 
 in (1950-51). 
 Q.154.  Which  of  the  following 
 commodities are exempted from GST? 
 SSC CPO 11/11/2022 (Afternoon) 
 (a) Hand sanitisers 
 (b) Pens 
 (c) Alcohol for human consumption 
 (d) Ventilators 
 Sol.154.(c)  Alcohol  for  human 
 consumption  .  Other  Goods  not  covered 
 under  Goods  and  Services  Tax  (GST): 
 Petrol,  high-speed  diesel,  aviation  turbine 
 fuel,  crude  oil,  Electricity,  and  Natural 
 Gas.  GST  {The  Constitution  122nd 
 Amendment  Bill  (2014),  101st 
 Amendment  Act  (2016),  Article  246A 
 (Special  Provision  for  GST),  Article  269A 
 (Levy  and  Collection  of  GST  for 
 Inter-State  Supply),  Article  279A  (GST 
 Council),  Article  286  (Restrictions  on  Tax 
 Imposition)}. 
 Q.155.  When  tax  collection  exceeds  the 
 required  expenditure,  the  budget  is  said 
 to be in ______. 
 SSC MTS 14/07/2022 (Afternoon) 
 (a) de?cit                          (b) surplus 
 (c) economic spread      (d) balance 
 Sol.155.(b) Surplus.  Balanced Budget  – 
 if  the  expected  expenditure  is  equal  to 
 the  anticipated  receipts  for  a  ?scal  year. 
 Surplus  Budget  –  If  the  expected 
 revenues  surpass  the  estimated 
 expenditure  for  a  particular  business 
 year. 
 Q.156.  The  tax  imposed  on  goods 
 imported  into  and  exported  out  of  India 
 is called _____. 
 SSC MTS 22/07/2022 (Afternoon) 
 (a) corporation tax       (b) excise tax 
 (c) capital gain tax       (d) custom duty 
 Sol.156.(d)  Customs  duty  refers  to  the 
 tax  imposed  on  goods  when  they  are 
 transported  across  international  borders. 
 An  Excise  tax  is  any  duty  on 
 manufactured  goods  that  is  levied  at  the 
 moment  of  manufacture  rather  than  at 
 sale. 
 Q.157.  Lack  of  ?nancial  discipline  by  the 
 government can lead to ______________. 
 (A) excess expenditure 
 (B) in?ation 
 SSC CHSL 26/05/2022 ( Morning) 
 (a) Only B  (b) Only A 
 (c) A and B  (d) Neither A nor B 
 Sol.157.(c)  A  and  B.  Lack  of  ?nancial 
 discipline  by  the  government  can  lead  to 
 excess  expenditure  and  in?ation. 
 In?ation  is  a  decrease  in  the  purchasing 
 power  of  money,  re?ected  in  a  general 
 increase in the prices of goods and 
 services in an economy. 
 Q.158.  GDP  that  takes  into  account  the 
 costs  in  terms  of  environmental  pollution 
 and  exploitation  of  natural  resources  is 
 called __________. 
 SSC CHSL 27/05/2022 (Evening) 
 (a) white GDP  (b) green GDP 
 (c) brown GDP  (d) blue GDP 
 Sol.158.(b)  The  Green  Gross  Domestic 
 Product  is  an  indicator  of  economic 
 growth  with  environmental  factors  taken 
 into  consideration  along  with  the 
 standard  GDP  of  a  country.  The  blue 
 economy  is  the  "sustainable  use  of 
 ocean  resources  for  economic  growth, 
 improved  livelihoods,  and  jobs  while 
 preserving  the  health  of  the  ocean 
 ecosystem." 
 Q.159.  NDP at FC = GDP at FC minus ___. 
 SSC CHSL 30/05/2022 (Morning) 
 (a) depreciation 
 (b) indirect taxes 
 (c) net factor income from abroad 
 (d) subsidies 
 Sol.159.(a) Depreciation  . 
 Q.160.  Which  of  the  following  angles  of 
 the  ?ow  of  factor  payments  forms  the 
 basis to estimate the national income? 
 SSC CHSL 30/05/2022 (Afternoon) 
 (a) Consumption angle 
 (b) Expenditure angle 
 (c) Income distribution angle 
 (d) Production angle 
 Sol.160.(c)  Income  distribution  angle 
 forms  the  basis  to  estimate  the  National 
 income.  National  income  is  the  sum  of 
 all  the  factor  income  that  is  generated 
 during a production year. 
 Q.161.  What  is  the  domestic  income  if 
 national  income  is  ?10,000  crore  and  net 
 factor  income  from  abroad  is  ?2,000 
 crore? 
 SSC CHSL 02/06/2022 (Morning) 
 (a) ?5,000 crore  (b) ?12,000 crore 
 (c) ?10,000 crore  (d) ?8,000 crore 
 Sol.161.(d)  ?8,000  crore  .  Domestic 
 income  =  National  Income  -  Net  factor 
 income  from  abroad.  Domestic  income= 
 ?10000- ?2000= ?8,000 crore. 
 Q.162.  To  combat  in?ation,  what  is  the 
 usual monetary policy stance adopted? 
 SSC CHSL 03/06/2022 (Afternoon) 
 (a) Owlish  (b) Dovish 
 (c) Hicksian  (d) Hawkish 
 Sol.162.(d) Hawkish stance  - To combat 
 in?ation,  the  central  bank  is  willing  to 
 hike  interest  rates  to  curb  the  money 
 supply  and  thus  reduce  the  demand. 
 Accommodative  stance  -  Central  bank  is 
 prepared  to  expand  the  money  supply  by 
 cutting  interest  rates  to  boost  economic 
 growth.  Neutral  stance  -  Central  banks 
 can either cut-rate or increase the rate. 
 Q.163.  Which  of  the  following 
 statements is/are correct? 
 I.  Only  marketed  goods  are  considered 
 while  estimating  Gross  Domestic 
 Product(GDP). 
 II.  The  work  done  by  a  woman  at  her 
 home  is  outside  the  purview  of  Gross 
 Domestic Product. 
 III.  In estimating GDP , only ?nal goods 
 and services are considered. 
 SSC CGL 11/04/2022 (Morning) 
 (a) Only II and III  (b) I, II and III 
 (c) Only I and III  (d) Only II 
 Sol.163.(b)  I, II and III. 
 Q.164.  The  value  of  the  Gross  Domestic 
 Product  (GDP)  of  India  is  published  by 
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 Pinnacle  Economics 
 PIB in ______. 
 SSC CGL 12/04/2022 (Morning) 
 (a) US Dollar  (b) Yen 
 (c) Yuan  (d) Indian Rupee 
 Sol.164.(d)  Indian  Rupee.  GDP  is  de?ned 
 by  the  following  formula  :  GDP  = 
 Consumption  +  Investment  + 
 Government Spending  +  Net Exports. 
 Q.165.  In  which  year  did  India's  ratio  of 
 public  debt  to  GDP  go  up  to  a  record 
 84.2% ? 
 SSC CGL 12/04/2022 (Afternoon) 
 (a) 1991   (b) 1999   (c) 2003   (d) 2001 
 Sol.165.(c)  2003. 
 Q.166.  ______  is  a  tax  system  that 
 collects  a  greater  share  of  income  from 
 those  with  high  incomes  than  from  those 
 with lower incomes. 
 SSC CGL 12/04/2022 (Evening) 
 (a) Proportional tax  (b) Regressive tax 
 (c) Payroll tax            (d) Progressive tax 
 Sol.166.(d)  Progressive  tax  is  a  tax 
 system  that  collects  a  greater  share  of 
 income  from  those  with  high  incomes 
 than  from  those  with  lower  incomes. 
 Payroll  tax  can  be  de?ned  as  the  tax  that 
 is  withheld,  charged,  or  levied  on  the 
 payroll of the employer. 
 Q.167.  According  to  the  Output  Method, 
 GDP is calculated as: 
 SSC CGL 13/04/2022 (Evening) 
 (a) GDP at Constant Prices – Taxes + 
 Subsidies 
 (b) GDP at Constant Prices + Subsidies 
 (c) GDP at Constant Prices – Taxes 
 (d) GDP at Constant Prices + Taxes – 
 Subsidies 
 Sol.167.(a)  GDP  at  Constant  Prices  – 
 Taxes  +  Subsidies  .  GDP  can  be 
 calculated in three ways, using 
 expenditures, production, or incomes. 
 Q.168.  Which  of  the  following  is  India’s 
 ?rst Paperless Budget? 
 SSC CGL 18/04/2022 (Morning) 
 (a) Union Budget 2018-19 
 (b) Union Budget 2020-21 
 (c) Union Budget 2019-20 
 (d) Union Budget 2021-22 
 Sol.168.(d)  Union  Budget  2021-22. 
 Finance  Minister  Nirmala  Sitharaman 
 presented the ?rst paperless budget. 
 Q.169.  Which  of  the  given  statements 
 about the Union Budget is/are true? 
 a)  Vote  on  Account  deals  only  with  the 
 expenditure  side  of  the  government 
 budget. 
 b)  Vote  on  Account  and  Interim  Budget 
 are not the same. 
 c)  An  Interim  Budget  gives  a  complete 
 ?nancial  statement,  similar  to  a  full 
 budget. 
 SSC CGL 21/04/2022 (Evening) 
 (a) Only a             (b) Only c 
 (c) a, b and c       (d) a and b 
 Sol.169.(c)  Budget  (Annual  ?nancial 
 statement,  Article  112)  is  a  statement  of 
 the  estimated  receipts  and  expenditure 
 of  the  government  in  a  ?nancial  year  (1 
 st 
 April  -  31 
 st 
 March).  A  vote-on-account  is 
 Parliament's  approval  to  the  Centre  for 
 withdrawal  of  money  from  the 
 Consolidated  Fund  of  India  for  a 
 speci?ed  expenditure  to  be  incurred  for  a 
 particular period. 
 Q.170.  The GDP de?ator is also called: 
 SSC CGL 21/04/2022 (Evening) 
 (a) implicit in?ation index 
 (b) explicit in?ation index 
 (c) implicit price de?ator 
 (d) explicit price de?ator 
 Sol.170.(c)  Implicit  price  de?ator  .  Gross 
 domestic  product  (GDP)  is  the  monetary 
 value  of  all  ?nished  goods  and  services 
 made  within  a  political  territory  during  a 
 speci?c period. 
 Q.171.  As  per  the  recommendations  of 
 the  National  Statistical  Commission,  the 
 Base  Year  of  the  GDP  Series  in  India  was 
 revised  from  2004-05  to  ______  with 
 effect from January 2015. 
 SSC MTS 06/10/2021 (Afternoon) 
 (a) 2011-12  (b) 2013-14 
 (c) 2005-06  (d) 2009-10 
 Sol.171.(a)  2011-12.  Base  Year  prices 
 are  being  used  to  calculate  the  real  GDP . 
 The  Base  Year  is  a  reference  period  that 
 provides  a  benchmark  against  which 
 price  changes  of  goods  and  services  are 
 measured. 
 Q.172.  Ronald  Reagan,  the  40th 
 President  of  the  US,  signed  the  largest 
 tax  cut  in  the  history  of  their  country  in 
 1981. Which economic theory was this 
 policy centred around? 
 SSC MTS 06/10/2021 (Evening) 
 (a) Laffer Curve 
 (b) Lorenz Curve 
 (c) Kuznets Curve 
 (d) Sweezy's Kinked Demand Curve 
 Sol.172.(a)  Laffer  Curve  is  a  graphic 
 representation  of  the  relationship 
 between  rates  of  taxation  and  the 
 resulting levels of government revenue. 
 Q.173.  In  which  year  was  the  Value 
 Added Tax introduced in India? 
 SSC MTS 08/10/2021 (Afternoon) 
 (a) 2007   (b) 2005    (c) 2002     (d) 2010 
 Sol.173.(b)  2005  .  Value  added  tax  (VAT, 
 Indirect  tax)  is  an  added  amount  on  the 
 purchase  of  an  article  that  increases  the 
 price  of  that  item  at  each  stage  of 
 production  to  distribution.  Since  2017,  it 
 get  subsumed  under  Goods  and  services 
 tax. 
 Q.174.  Which  of  the  following  items  does 
 NOT  directly  affect  the  Current  Account 
 Balance of India? 
 SSC MTS 11/10/2021 (Evening) 
 (a) Net income abroad 
 (b) Foreign aid 
 (c) Trade gap 
 (d) Revenue income 
 Sol.174.(d)  Revenue  income  .  The  5 
 major  sources  of  revenue  for  the 
 Government  are  Goods  and  Services  Tax 
 (GST),  Income  tax,  corporation  tax, 
 non-tax revenues, union excise duties. 
 Q.175.  The  Union  Budget,  2020-21, 
 increased  deposit  insurance  coverage  for 
 bank  deposits  to  ?  ____  (lakhs)per 
 depositor. 
 SSC MTS 22/10/2021 (Afternoon) 
 (a) 1  (b) 2       (c) 5  (d) 3 
 Sol.175.(c) 5 Lakhs.  Deposit Insurance 
 provided  by  the  Deposit  Insurance  and 
 Credit  Guarantee  Corporation  (DICGC),  a 
 wholly  owned  subsidiary  of  the  Reserve 
 Bank  of  India  (RBI).  It  provides  deposit 
 insurance  that  works  as  a  protection 
 cover  for  bank  deposit  holders  when  the 
 bank fails to pay its depositors. 
 Q.176.  Which of the following sectors of 
 the  economy  has  the  highest  share  in 
 India's GDP ? 
 SSC CHSL 12/10/2020 (Afternoon) 
 (a) Agriculture  (b) Industrial 
 (c) Manufacturing   (d) Service 
 Sol.176.(d)  Services  sector  .  Example  of 
 Services  sector  -  banking,  insurance, 
 ?nance etc. 
 Q.177.  Who  among  the  following 
 publishes the Economic Survey of India ? 
 SSC CGL 03/03/2020 (Evening) 
 (a) Ministry of Finance 
 (b) Indian Statistical Institute 
 (c) National Development Council 
 (d) Institute of ?nance 
 Sol.177.(a)  Ministry  of  Finance  .  The 
 Department  of  Economic  Affairs, 
 Ministry  of  Finance  presents  the  survey 
 in  parliament  every  year,  just  before  the 
 union budget. 
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 Pinnacle  Economics 
 Money Banking and Financial 
 Institutions 
 Q.178.  Who  issued  guidelines  for  the 
 micro?nance institutions in India? 
 SSC CHSL Tier II  10/01/2024 
 (a) Finance Ministry 
 (b) NABARD 
 (c) State Government 
 (d) Reserve Bank of India 
 Sol.178.(d)  Reserve  Bank  of  India. 
 Micro?nance  institution  -  An  organisation 
 that  offers  microloans,  microsavings  and 
 microinsurance  services  to  low  income 
 populations.  In  India,  loans  below  one 
 lakh  rupees  are  de?ned  as  microloans. 
 The  RBI  de?ned  micro?nance  as 
 collateral  free  loans  given  to  households 
 having annual income up to Rs. 3 lakh. 
 Q.179.  The  Reserve  Bank  of  India  was 
 established in: 
 SSC CHSL Tier II  02/11/2023 
 (a) 1930    (b) 1951   (c) 1948   (d) 1935 
 Sol.179.(d)  1935.  The  Reserve  Bank  of 
 India  was  established  on  April  1,1935  in 
 accordance  with  the  provisions  of  the 
 Reserve  Bank  of  India  Act,  1934.  The 
 Central  O?ce  of  the  Reserve  Bank  was 
 initially  established  in  Kolkata  but  was 
 permanently  moved  to  Mumbai  in  1937. 
 Few  other  banks  and  their  establishment 
 years:  Bank  of  India  -  1906,  Central  Bank 
 of  India  -  1911,  Punjab  National  Bank  - 
 1894. 
 Q.180.  When  RBI  decides  to  decrease  the 
 repo  rate,  money  supply  will  _________  .SSC 
 Stenographer 12/10/2023 (Morning) 
 (a) decrease 
 (b) increase 
 (c) remain unaffected 
 (d) initially stay constant and then 
 decrease 
 Sol.180.(b)  increase.  Repo  rate  :-  It 
 refers  to  the  rate  at  which  commercial 
 banks  borrow  money  by  selling  their 
 securities  to  the  Reserve  bank  of  india 
 (RBI)  to  maintain  liquidity,  in  case  of 
 shortage  of  funds  or  due  to  some 
 statutory  measures.  It  is  one  of  the  main 
 tools  of  RBI  to  keep  in?ation  under 
 control.  If  Repo  Rate  increases  then 
 money supply will decrease. 
 Q.181.  The  Reserve  Bank  of  India  was 
 nationalised on ________. 
 SSC Stenographer 12/10/2023 (Morning) 
 (a) March 1, 1949       (b) January 1, 1949 
 (c) October 1, 1949    (d) April 1, 1949 
 Sol.181.(b) January 1, 1949. 
 The  Reserve  Bank  of  India  (RBI)  was 
 established  on  1  April  1935.  It  was  set  up 
 on  the  basis  of  the  recommendations  of 
 the  ‘Hilton  Young  Commission’  (1926) 
 and  under  RBI  Act  1934.  The  ?rst  Indian 
 Governor  of  the  RBI  was  CD  Deshmukh. 
 Twenty-?fth  governor:  Shaktikanta  Das. 
 Headquarter - Mumbai (Maharashtra). 
 Q.182.  For  providing  a  non-micro?nance 
 loan  to  a  low-income  household,  there  is 
 a  limit  of  ____________  on  monthly  loan 
 repayment  obligations  of  a  household  as 
 a  percentage  of  monthly  household 
 income. 
 SSC Stenographer 12/10/2023 (Afternoon) 
 (a) 25%     (b) 50%       (c) 75%     (d) 40% 
 Sol.182.(b)  50%.  This  limit  is  set  by  the 
 Reserve  Bank  of  India  (RBI)  to  protect 
 low-income  households  from 
 over-indebtedness. 
 Q.183.  ________  is  an  instrument  under 
 the  Liquidity  Adjustment  Facility  (LAF)  at 
 which RBI lends to commercial banks. 
 SSC Stenographer 12/10/2023 (Evening) 
 (a) Repo rate          (b) Reverse repo rate 
 (c) Bank rate           (d) Cash reserve ratio 
 Sol.183.(a)  Repo  rate.  Reverse  repo  rate 
 -  The  rate  at  which  the  central  bank  of  a 
 country  borrows  money  from 
 commercial  banks.  Bank  rate  -  It  is  a  rate 
 at  which  the  Reserve  Bank  of  India  (RBI) 
 provides  the  loan  to  commercial  banks 
 without  keeping  any  security.  Cash 
 reserve  ratio  -  The  percentage  of  a  bank's 
 total  deposits  that  it  needs  to  maintain 
 as liquid cash. 
 Q.184.  The  maximum  limit  on 
 micro?nance  loans  for  NBFCs  other  than 
 NBFC-MFIs is_________ . 
 SSC Stenographer 13/10/2023 (Morning) 
 (a) 75% of the total assets 
 (b) 25% of the total assets 
 (c) 85% of the total loans 
 (d) 25% of the total equity 
 Sol.184.(b)  25%  of  the  total  assets.  The 
 minimum  and  maximum  interest  rate 
 cannot  be  more  than  4%.  NBFC-MFI  is 
 required  to  maintain  not  less  than  85%  of 
 its net assets as qualifying assets. 
 Q.185.  In  the  concept  of  money  supply, 
 M4 refers to ________. 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) currency with the public 
 (b) M1+ post o?ce saving deposits 
 (c) M3+ total post o?ce deposits 
 (d) M1+ time deposits of the public with 
 banks 
 Sol.185.(c) M3+ total post o?ce 
 deposits.  The  Reserve  Bank  of  India 
 (RBI)  releases  data  for  four  different 
 metrics  representing  money  supply, 
 namely  M1,  M2,  M3,  and  M4.  M2  =  M1  + 
 Savings  deposits  with  Post  O?ce 
 savings  banks.  M3  =  M1  +  Net  time 
 deposits of commercial banks. 
 Q.186.  Identify  the  correct  statement  in 
 the context of money supply 
 (i)  Money  supply  refers  to  the  total 
 volume  of  money  held  by  public  at  a 
 particular point of time 
 (ii)  Money supply is a ?ow concept 
 (iii)  M1  is  the  most  liquid  measure  of 
 money supply 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) Only (ii)                   (b) Only (i) 
 (c) Only (ii) and (iii)     (d) Only (i) and (iii) 
 Sol.186.(d)  Only  (i)  and  (iii).  The  money 
 supply  is  the  entire  stock  of  currency  and 
 other  liquid  instruments  in  a  country's 
 economy  as  of  a  particular  time.  M1,  M2, 
 M3,  M4  is  the  measure  of  money  supply. 
 M1  is  the  most  liquid  and  makes 
 transactions  the  easiest,  while  M4  is  the 
 least  liquid.  M1,  M2  -  Narrow  Money.  M3, 
 M4  -  Broad  Money.  M1  =  Currency  with 
 the  public  +  Demand  deposits  in  bank  + 
 Other  deposits  with  RBI.  M4  =  M3  +  Total 
 Deposits  with  Post  O?ce  Savings 
 Organisation. 
 Q.187.  Which  of  the  following  is  a 
 function  performed  by  commercial  banks 
 in India? 
 SSC Stenographer 13/10/2023 (Evening) 
 (a) Credit creation 
 (b) Issue of currency 
 (c) Banking facilities to the government 
 (d) Credit control 
 Sol.187.(a)  Credit  creation  -  Process  by 
 which  commercial  banks  create  new 
 money  by  lending  to  businesses  and 
 individuals. 
 Q.188.  In  India  all  loans  that  are  below 
 _______ are considered as micro loans. 
 SSC CPO 03/10/2023 (Morning) 
 (a) one lakh rupees  (b) four lakh rupees 
 (c) two lakh rupees  (d) three lakh rupees 
 Sol.188.(a) one lakh rupees. 
 Non-Banking  Financial  Company  -  Micro 
 Finance  Institution  (NBFC-MFI):  A  type  of 
 ?nancial  institution  that  provides 
 ?nancial  services,  including  microloans 
 and  other  ?nancial  products,  to 
 low-income  and  economically  vulnerable 
 individuals,  especially  in  rural  and 
 underserved  areas.  The  regulator  of 
 Micro  Finance  in  India  is  the  Reserve 
 Bank of India. 
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 Pinnacle  Economics 
 Q.189.  Which  of  the  following 
 micro?nance  institutions  was 
 established  in  India  at  the  time  of 
 independence? 
 SSC CPO 03/10/2023 (Afternoon) 
 (a) Self Help Group 
 (b) Grameen Model Bank 
 (c) Rural Cooperatives 
 (d) Joint Liability Group 
 Sol.189.(c)  Rural  Cooperatives. 
 Micro?nance  Institutions  -  Financial 
 companies  that  provide  small  loans  to 
 people  who  do  not  have  any  access  to 
 banking  facilities.  Bandhan  Bank  became 
 the  ?rst  micro?nance  company  to  get  a 
 bank  licence  in  2014.  Grameen  Model 
 Bank  -  It  was  the  brainchild  of  Nobel 
 Laureate  Prof.  Muhammad  Yunus  in 
 Bangladesh in the 1970s. 
 Q.190.  Which  of  the  following  options  is 
 not an example of small savings? 
 SSC CPO 05/10/2023 (Morning) 
 (a) Mutual Funds 
 (b) Kisan Vikas Patras 
 (c) National Savings Certi?cates 
 (d) Post O?ce Deposits 
 Sol.190.(a)  Mutual  Funds  -  A  mutual 
 fund  is  a  type  of  investment  vehicle 
 consisting  of  a  portfolio  of  stocks, 
 bonds,  or  other  securities.  The  mutual 
 funds  in  India  are  regulated  by  the 
 Securities  and  Exchange  Board  of  India 
 (SEBI)  and  the  Reserve  Bank  of  India 
 (RBI).  The  Government  of  India  set  up  the 
 ?rst  mutual  fund  by  an  Act  of  Parliament 
 in 1963. 
 Q.191.  What  is  the  difference  between  a 
 debit card and a credit card ? 
 SSC MTS 01/09/2023 (1st Shift) 
 (a) Debit cards are used for online 
 transactions, while credit cards are 
 used for in-person purchases. 
 (b) Credit cards require a PIN, while debit 
 cards require a signature. 
 (c) Debit cards withdraw money directly 
 from a bank account, while credit 
 cards allow borrowing up to a certain 
 limit. 
 (d) Debit cards have higher interest rates 
 than credit cards. 
 Sol.191.(c)  Debit  cards  (Plastic  Money) 
 and  credit  cards  look  nearly  identical,  and 
 both  can  give  a  fast  and  convenient  way 
 to  pay  -  no  matter  whether  you’re  paying 
 in  person,  online  or  over  the  phone.  Using 
 a  debit  card  is  like  using  cash  in  hand,  as 
 you  can  spend  only  what  you  have.  But 
 credit  cards  come  with  a  credit  limit  that 
 is not dependent on bank balance. 
 Q.192.  Which  of  the  following  is  NOT  a 
 characteristic of money? 
 SSC MTS 04/09/2023 (1st Shift) 
 (a) Portability               (b) Perishability 
 (c) Divisibility               (d) Durability 
 Sol.192.(b)  Perishability  -  A 
 characteristic  of  products  and  services 
 that  do  not  allow  for  the  product  or 
 service  to  be  stored  for  sale  at  a  future 
 date.  Money  -  Any  object  that  is  generally 
 accepted  as  payment  for  goods  and 
 services  and  repayment  of  debts  in  a 
 given country or socio-economic context. 
 Q.193.  The  important  milestones  of  the 
 SHG  Bank  linkage  movement  was 
 spearheaded  by  __________  with  support 
 from RBI. 
 SSC MTS 04/09/2023 (3rd Shift) 
 (a) SEBI                    (b) Indian Bank 
 (c) NABARD            (d) Cooperative Bank 
 Sol.193.(c)  NABARD  (National  Bank  for 
 Agriculture  and  Rural  Development)  .  It  is 
 the  apex  banking  institution  to  provide 
 ?nance  for  Agriculture  and  rural 
 development.  The  SHG-Bank  Linkage 
 Programme  (SBLP)  was  initiated  as  an 
 action  research  by  the  NABARD  in  1989 
 and  was  subsequently  crystallised  into  a 
 pilot project in 1992. 
 Q.194.  What  is  a  dimension  related  to 
 the  sustainability  of  micro?nance 
 institutions in India? 
 SSC MTS 04/09/2023 (3rd Shift) 
 (a) Dependency on donor funding 
 (b) Limited social impact 
 (c) High-pro?t margins 
 (d) Excessive interest rates 
 Sol.194.(a)  Dependency  on  donor 
 funding.  Micro?nance  Institutions  in 
 India  -  Self  Help  Group  (SHG);  Joint 
 Liability  Group  (JLG)  and  Grameen  Model 
 Bank. 
 Q.195.  What  does  the  term  'interest'  refer 
 to in banking? 
 SSC MTS 05/09/2023 (1st Shift) 
 (a) The additional amount earned on a 
 loan or deposit 
 (b) The amount of money deposited into 
 a bank account 
 (c) The value of a currency in relation to 
 other currencies 
 (d) The fee charged for withdrawing 
 money from an ATM 
 Sol.195.(a)  Banking  Terminologies:  Repo 
 Rate:  The  interest  rate  at  which  a  nation's 
 central  bank  lends  money  to  commercial 
 banks  often  in  the  form  of  very 
 short-term loans. 
 Q.196.  What  is  the  main  role  of 
 commercial banks in the economy? 
 SSC MTS 05/09/2023 (2nd Shift) 
 (a) To promote economic growth and 
 development 
 (b) Regulating the stock market 
 (c) control on in?ation 
 (d) Management of foreign exchange 
 reserves 
 Sol.196.(a)  Other  functions  of 
 commercial  Banks  :  Accepting  Deposits 
 (Savings,  Currents,  Fixed),  Lend  money  to 
 people  and  businesses,  Provide  Locker 
 to  Customers,  Deals  with  foreign 
 exchanges  etc.  Commercial  Banks  are 
 regulated  by  Reserve  Bank  of  India  (RBI) 
 under  Banking  Regulation  Act,  1949. 
 Function  of  RBI  -  Management  of  foreign 
 exchange  reserves,  control  on  in?ation, 
 issues  notes,  serve  as  Bank  of 
 commercial Banks. 
 Q.197.  Which  of  the  following  is  a  key 
 objective  of  Micro  Finance  Institutions  in 
 India ? 
 SSC MTS 06/09/2023 (1st Shift) 
 (a) Providing loans exclusively to women 
 entrepreneurs 
 (b) Encouraging large-scale 
 industrialisation 
 (c) Maximising pro?ts for shareholders 
 (d) Promoting ?nancial inclusion and 
 poverty alleviation 
 Sol.197.(d)  MFIs  are  ?nancial  companies 
 that  provide  small  loans  to  people  who 
 do  not  have  any  access  to  banking 
 facilities.  The  de?nition  of  “small  loans” 
 varies  between  countries.  In  India,  all 
 loans  that  are  below  Rs.1  lakh  can  be 
 considered  as  microloans.  Types  of 
 institutions  that  offer  micro?nance  are: 
 Credit  unions,  Non  governmental 
 organisations,  Commercial  banks, 
 Cooperatives. 
 Q.198.  Which  of  the  following 
 statements  best  de?nes  a  Micro  Finance 
 Institution (MFI)? 
 SSC MTS 06/09/2023 (1st Shift) 
 (a) MFIs are investment ?rms that cater 
 exclusively to high-net-worth 
 individuals. 
 (b) MFIs are non-pro?t organisations that 
 provide ?nancial services to 
 low-income individuals and small 
 businesses. 
 (c) MFIs are banks that provide loans 
 only to large corporations. 
 (d) MFIs are government agencies that 
 regulate the micro?nance sector. 
 Sol.198.(b)  Micro?nance,  also  called 
 microcredit ,  is  a  type  of  banking  service 
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 provided  to  low-income  individuals  or 
 groups  who  otherwise  wouldn't  have 
 access to ?nancial services. 
 Q.199.  What  is  the  main  function  of 
 money in an economy ? 
 SSC MTS 06/09/2023 (3rd Shift) 
 (a) To regulate interest rates 
 (b) To create wealth 
 (c) To facilitate exchange 
 (d) To control in?ation 
 Sol.199.(c)  to  facilitate  exchange. 
 Primary  functions  of  money  :  Medium  of 
 exchange,  measure  of  value.  Secondary 
 Functions  /  Derivative  functions  :  Store  of 
 value,  deferred  payment,  Transfer  of 
 Value  /  Purchasing  Power.  Types  of 
 money  :  Fiduciary  money,  ?at  money, 
 commodity  money,  legal  tender  money 
 and cryptocurrency. 
 Q.200.  What  is  the  meaning  of  the  term 
 'Collateral' in banking ? 
 SSC MTS 08/09/2023 (3rd Shift) 
 (a) An investment portfolio 
 (b) A type of credit card 
 (c) A form of digital payment 
 (d) An asset pledged as security for a 
 loan 
 Sol.200.(d)  Banking  Terms:  Assets  -  Any 
 personal  possessions  of  value  (cash,  real 
 estate  and  investments).  CASA  Deposit  - 
 Deposit  in  bank  in  current  and  Savings. 
 Coverage  Ratio  -  Equity  minus  net  NPA 
 divided  by  total  assets  minus  intangible 
 assets.  Net  Interest  Margin  -  Net  interest 
 income  divided  by  average  interest 
 earning assets. 
 Q.201.  What  is  the  purpose  of  a  savings 
 account? 
 SSC MTS 11/09/2023 (1st Shift) 
 (a) Obtaining a mortgage loan 
 (b) Earning interest on deposits 
 (c) Making day-to-day transactions 
 (d) Paying bills online 
 Sol.201.(b)  Earning  interest  on  deposits: 
 It  is  paid  by  a  bank  or  ?nancial 
 institutions  to  account  holders  who  have 
 deposited with them. 
 Q.202.  Which  of  the  following  is  an 
 example  of  a  micro?nance  institution 
 (MFI) in India? 
 SSC MTS 11/09/2023 (3rd Shift) 
 (a) State Bank of India (SBI) 
 (b) Bandhan Bank 
 (c) ICICI Bank 
 (d) HDFC Bank 
 Sol.202.(b)  Bandhan  Bank.  Micro?nance 
 -  A  type  of  banking  service  that  provided 
 loans  to  those  who  face  di?culties  in 
 getting  loans  from  formal  ?nancial 
 institutions.  SEWA  Bank,  the  ?rst 
 micro?nance  institution  in  India, 
 established  in  1974.  Micro?nance 
 companies  in  India  -  Annapurna  Finance 
 (2009),  Asirvad  Micro?nance  (2007), 
 Bandhan  Financial  Services  (1995), 
 Fusion  Micro?nance  (2010),  Cashpor 
 Micro Credit (2002). 
 Q.203.  What  is  the  main  source  of 
 income for commercial banks? 
 SSC MTS 12/09/2023 (3rd Shift) 
 (a) Donations from customers 
 (b) Pro?ts from stock market 
 investments 
 (c) Government grants 
 (d) Interest earned on loans and 
 advances 
 Sol.203.(d)  The  commercial  bank  is  a 
 ?nancial  institution  whose  purpose  is  to 
 accept  deposits  from  people  and  provide 
 loans  and  other  facilities.  Functions  - 
 Accepting  deposits,  lending  out  loans, 
 transfer  of  money,  and  discounting  bills 
 of exchange. 
 Q.204.  Which  institution  mainly  provides 
 ?nancial  assistance  and  support  to 
 micro?nance institutions in India? 
 SSC MTS 12/09/2023 (3rd Shift) 
 (a) Department of Economic Affairs 
 (DEA) 
 (b) Ministry of Corporate Affairs 
 (c) Indian Banks' Association (IBA) 
 (d) Small Industries Development Bank 
 of India (SIDBI) 
 Sol.204.(d)  SIDBI.  Set  up  on  2nd  April 
 1990 under an Act of Indian Parliament. 
 Q.205.  What  does  the  term  'Overdraft' 
 mean in banking? 
 SSC MTS 13/09/2023 (2nd Shift) 
 (a) The process of transferring funds 
 between bank accounts 
 (b) The maximum withdrawal limit from 
 an ATM 
 (c) Short-term ?nancing facility 
 (d) The interest charged on loans 
 Sol.205.(c)  Short-term  ?nancing  facility. 
 Bank  overdraft  is  a  type  of  ?nancial 
 instrument  that  is  provided  to  some 
 customers  by  the  bank  in  the  form  of  an 
 extended  credit  facility,  which  comes  into 
 effect  once  the  main  balance  of  the 
 account  reaches  zero.  It  is  mainly  used 
 for  covering  short  term  cash 
 requirements. 
 Q.206.  Who said the following? 
 "Money is what money does." 
 SSC MTS 13/09/2023 (3rd Shift) 
 (a) Prof. Seligman     (b) Prof. Cole 
 (c) Prof. Walker         (d) Prof. Robertson 
 Sol.206.(c)  Prof.  Walker  -  American 
 economist.  Famous  quotes  in 
 economics  -  "Economics  is  the  science 
 of  wealth"  (Adam  Smith),  "A  national 
 debt,  if  it  is  not  excessive,  will  be  to  us  a 
 national  blessing."  (Alexander  Hamilton), 
 “Any  policy  maker’s  tool  kit  must  have 
 enough  room  for  ?scal  policies  because 
 they  are  of  paramount  importance”  (Gita 
 Gopinath). 
 Q.207.  What  is  the  main  purpose  of  a 
 bank statement? 
 SSC MTS 14/09/2023 (2nd Shift) 
 (a) To track income and expenses 
 (b) To transfer funds to another account 
 (c) To advertise new banking products 
 (d) To have locker facility in the bank 
 Sol.207.(a)  Other  Bank  related  terms  : 
 Savings  account  -  A  deposit  account 
 held  at  a  bank,  allowing  customers  to 
 save  money  while  earning  interest. 
 Current  account  -  Suitable  for  businesses 
 who  have  a  higher  number  of  regular 
 transactions  with  the  bank.  Fixed  Deposit 
 -  A  lump  sum  amount  put  in  a  bank  for  a 
 ?xed tenure at an agreed rate of interest. 
 Q.208.  Women  SHG  member  appointed 
 as a banking agent is called _________ . 
 SSC CHSL 02/08/2023 (1st shift) 
 (a) Bank Mitra                      (b) Bank Dost 
 (c) Bank Sakhi                     (d) Bank NGO 
 Sol.208.(c)  Bank  Sakhi.  Self  -  Help  Group 
 (SHG)  -  An  informal  association  of 
 people  who  come  together  to  ?nd  ways 
 to  improve  their  living  conditions.  They 
 are  generally  self-governed  and 
 peer-controlled.  Advantage  -  Offering 
 support  and  encouragement,  Facilitating 
 personal  growth,  Promoting  mental 
 health. 
 Q.209.  In  2014,  Bandhan  Financial 
 Services,  microlender  with  Headquarters 
 at  _____________  ,was  granted  in-principal 
 approval  by RBI to start a universal bank 
 SSC CHSL 02/08/2023 (1st shift) 
 (a) Kolkata                        (b) Mumbai 
 (c) Pune                            (d) Lucknow 
 Sol.209.(a)  Kolkata.  Bandhan  Finance 
 Service  -  Established  -  2001.  Founder  - 
 Chandra  Shekhar  Ghosh.  Micro  Lending 
 Bank  -  Connect  a  borrower  and  lender  for 
 a  non-traditional,  smaller  loan.  Universal 
 banking  is  a  system  of  banking  where 
 banks  undertake  a  blanket  of  ?nancial 
 services  like  investment  banking, 
 commercial  banking,  development 
 banking,  insurance  and  other  ?nancial 
 services.  ICICI Bank Limited  is the ?rst 
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