Question Answers with Explanation Industries Chapter 12... · does not come under the sphere of...

HIMALAI - THE BEST QUALITY SUBJECT WISE AND CHAPTER WISE STUDY MATERIALS, MCQ’s WITH EXPLANATIONS FOR IAS PRELIMINARY EXAMINATION

HIMALAI MAKING INDIAN ADMINISTRATORS SINCE 1998 1

Question Answers with Explanation

Industries

1. Consider the following statements:

1. India is the largest producer of sponge iron in the world.

2. All industries of public sector are profit oriented.

3. Industrial Development Bank of India (IDBI) is an apex institution in the field of industrial

finance.

Which of the statements are correct?

a) 1 only b) 2 only c) 1 and 3 only d) 1, 2 and 3

Ans: C

Explanation: The statement ( 1) is correct because India stands at first position in the world in case

of sponge iron production

Statement (2) is not correct because all public sector industries are not profit oriented.

IDBI is an apex institution in the field of Industrial Finance. Thus statement 3 is correct.

2. Match List I with List II correctly and Select your answer from the codes given below:

List I (EPZ) List II (Items)

a) Tirupur 1. Handloom

b) Muradabad 2. Sports items

c) Panipat handicraft 3. Brassware

d) Meerut 4. Hosiery & Weaving industry

Codes: A B C D

a) 1 2 3 4

b) 1 2 4 3

c) 4 3 1 2

d) 4 3 2 1

Ans: C

Explanation: The correct match is :

a) Tirupur Hosiery & Weaving industry

b) Muradabad Brassware handicrafts

c) Panipat handicraft Handloom

d) Meerut Sports items

3. Core Industries Include:

1. Iron and Steel Industry 2. Service sector 3. Heavy machinery 4. Cement industry

Select the correct answer with the help of codes given Below:

a) 1 and 2 b) 3 and 4 c) 1, 2 and 3 d) 1, 3 and 4

Ans: D

Explanation: Development of infrastructure industries like cement, iron and steel, petroleum, heavy

machinery etc. can only ensure the development of the economy as a whole. Such industries

are core sector industries. They accelerate the development of any country. Service sector

does not come under the sphere of core industries.


1. Abid Hussain Committee was related to energy sector reforms

2. Bhilai Steel plant is the collaborative project of Indian government and Britain.



3. Raaurkela Steel plant was set up with the assistance from UK

Which statements are not correct?

Ans: D

Explanation: All the statements are not correct. The Correct statements are:

1. Abid Hussain Committee was related to small and medium industries

2. Bhilai Steel Plant is the collaborative project of Indian government and soviet Union (now

Russia)

3. Raurkela Steel Plant was set up with the assistance from western Germany.


1. The first industrial policy was introduced by Shyama Prasad Mukherjee in 1948.

2. India is the largest manufacture of cement in the world

Which statements are correct:

a) 1 only b) 2 only c) 1 and 2 both d) Neither 1 nor 2

Ans: A

Explanation: Shyama Prasad Mukherjee introduced the first industrial policy on 6 April, 1948. The

foundation of mixed and controlled economy was laid down by this policy. So statement (1)

is correct.

Statement (2) is not correct because India is the second largest manufacturer of cement in the

world.


1. First industrial revolution Took Place in England.

2. Bhilai and Durgapur steel plants were established in second five year plan

3. Second Five year plan was based on Mahalanobis Model

Which of the Statements are correct?

a) 1 and 2 b) 2 and 3 c) 1, 3 and 4 d) 1, 2 and 3

Ans: D

Explanation: 1. First Industrial revolution took place in England. Hence statement 1 is correct

2. Statements 2 and 3 are also correct because Bhilai, Durgapur and Raaurkela steel

plants were established in 2nd FYP

Statement 4 is not correct because Industries were on top priority in second FYP and

not in 1st FYP

7. The characteristics features of new Industrial Policy, 1991 are:

1. Public sector’s role diluted.

2. Abolition of Industrial Licensing.

3. Entry of foreign investment and technology made easier.

Select the correct answer with the help of codes:

a) 1 only b) 1 and 2 only c) 2 and 3 only d) 1, 2 and 3

Ans: D

Explanation: In the year 1991 the government of India accepted the policy of LPG (liberalization,

Privatization and globalization). The impact of LPG policy could be seen on new industrial

policy of 1991. The main features of this policy are:

Dilution of Public sector role

Abolition of Industrial licensing

Entry of foreign investment and technology made easier.

8. Correlate the following



Industry Field

a. Basic Industries Fertilizer

b. Strategic Industries Petroleum

c. Critical Industries Automobile

d. Goods based Arms and Industries Ammunition

Code: A B C D

a) 4 2 3 1

b) 4 1 2 3

c) 1 4 2 3

d) 2 4 3 1

Ans: D

Explanation: The correct match is:

a. Basic Industries Petroleum

b. Strategic Industries Ammunition

c. Critical Industries Automobile

d. Goods based Arms and Industries Fertilizers

9. Find out the Correctly matched pair/s:

1. Triwari Committee - Industrial Sickness.

2. Nayak Committee - Financial and sickness related problems of the small

Industries

3. Meera Seth Committee - Handloom Industry

4. Narsimhan Committee -Banking sector reforms

Select Your Answer from the codes given Below:

a) 1 and 2 b) 1, 2 and 3 c) 1, 2, 3 and 4 d) None of these

Ans: C

Explanation: 1. Triwari Committee - Industrial Sickness.

2. Nayak Committee -Financial and sickness related problems of the small

Industries

3. Meera Seth Committee -Handloom Industry

4. Narsimhan Committee -Banking sector reforms


1. Cotton industry is the oldest large industry of India.

2. The first fertilizer plant was set up in Trombay

3. Plastic Industries receive raw materials from petroleum refineries.

Which statements are correct?

a) 1 only b) 1 and 3 only c) 2 and 3 only d) 1,2 and 3

Ans: B

Explanation: Cotton Industry is the oldest large industry in India. So statement (1) is correct.

Statement (2) is not correct Because first fertilizer plant was set up in Sindri (Bihar), not in

Trombay. Plastic industries receive raw materials from petroleum refineries, so statement 3 is

correct.

11. Match the following

Select the correct answer from the codes given below

a) Gold 1. Khetri

b) Coal 2. Kolar



c) Copper 3. Kuderamukh

d) Iron 4. Jharia

Codes: A B C D

a) 1 2 3 4

b) 4 3 2 1

c) 3 4 1 2

d) 2 4 1 3

Ans: D


a) Gold 1. Kolar

b) Coal 2. Jharia

c) Copper 3. Khetri

d) Iron 4. Kuderamukh

12. The concept of ‘Navartna’ is associated with:

a) Selected categories of technical manpower b) Selected export oriented units

c) Selected food processing industries d) Selected public sector enterprises

Ans: D

Explanation: The concept of Navratna is associated with the selected public sector enterprises.

Navartna public sector enterprises have been enhanced autonomy and delegation of powers to

enter into technology joint ventures, to incur capital expenditure and to raise capital form

domestic and international market etc.

13. Match the List-II correctly and select the correct answer from the codes given below.

List-I List-II

a) Mineral oil 1. Orissa

b) Gypsum 2. Karnatka

c) Gold 3. Gujarat

d) Bauxite 4. Rajastjan

Codes: A B C D

a) 3 2 1 4

b) 2 1 4 3

c) 4 3 1 2

d) 3 4 2 1

Ans: D


1. Mineral Oil Gujrat

2. Gypsum Rajasthan

3. Gold Karnataka

4. Bauxite Orissa

14. Match List-I (Minerals) with List-II (Location) and select the correct answer, using code

given below the lists:

List-I List-II

(Minerals) (Location)

a) Coal 1. Giridih

b) Copper 2. Jayamkondam

c) Mangnese 3. Alwar



d) Lignite 4. Dharwar

Code: A B C D

a) 1 4 3 2

b) 2 3 4 1

c) 1 3 4 2

d) 2 4 3 1

Ans: (C)


Minerals Location

Coal - Giridih

Copper - Alwar

Mangnese - Dharwar

Lignite - Jayamkondam

15. Consider the following problems being faced by the Indian Coal Industry:

1. Poor quality of coal and bottlenecks in the coal movement.

2. Low utilisation capacity of washeries

3. Growing dependence on the import of coking coal

4. Administered prices

Which of the above are correct?

a) 2, 3 and 4 b) 1, 2, 3 and 4 c) 1, 3 and 4 d) 1, 2 and 3

Ans: B

Explanation: Indian Coal Company is facing many problems. The coal is of poor quality and there is

hindrance in the coal movement. The washries have low utilization capacities. Other

problems are administered prices and growing dependence on import of coking coal. So

correct answer is (b) .


1. The main purpose of GAAR is to bring those deals or investments under the purview of

tax which have been structured only to avoid the payment of taxes.

2. At present India’s total foreign debt stock is 25% of GDP

Choose correct option:

a) Only 1 b) Only 2 c) 1 and 2 d) None of these

Ans: A

Explanation: GAAR limits avoidance of taxes. In India GAAR is an acronym for general anti

avoidance rule which are framed to minimized tax avoidance. It was purposed by union

budget 2012-13.

At present India’s total foreign debt stock is 18.3% of GDP.

17. Read the following statements and select correct code:

1. Insider trading is the trading of a corporation stock or other securities by individuals with

potential access to non-public information about the company.

2. In company bill insider trading is criminal offence.

a) Only 1 is true b) Only 2 is true c) Both 1 and 2 d) Neither 1 nor 2

Ans: C



Explanation: Insider trading is the trading of a public company’s stock or other securities by

individuals with access to non-public information in various countries. Insider trading based

on insider information is illegal.

In company bill insider trading is criminal offence.

18. Match the following List-I and List-2:

List-1 List-2

(Export development centre)

A) Panipat 1.Handicraft

B) Muradabad handicraft 2.Brassware

C) Jalandhar 3.Sport Material

D) Wapi (Ankeleswar) 4.Chemical

Code: A B C D

a) 1 2 3 4

b) 1 2 4 4

c) 2 3 4 1

d) 2 3 4 1

Ans: A


Panipat - Handloom

Muradabad - Brassware handicraft

Jalandar - Sport material

Wapi - Chemical

19. Which of the following airport in India is the first to be owned by public limited company:

a) Bangalore airport b) Hyderabad airport

c) Dabolim airport d) None of these

Ans: A

Explanation: Bangalore airport is the first to be owned by public limited company in India. The

private consortium is led by Germany. Cochin is new green field international airport to have

been built. It was open to traffic in 1999.

20. Which of the following is/are not Drug/Pharma company/Companies?

1. Chevron 2. Pfizer 3. Zydus Cadila 4. Nicholar Piramal

Code:

a) 1, 2, 3 and 3 b) 1, 2 and 3 are correct

c) 2 and 1 are correct d) Only 1 is correct

Ans: D

Explanation: Chevron Corporation is the world’s fourth largest non-government energy company.

It is a engaged in every aspect of the oil and gas industries including production and

exploration, refining, marketing and transport. Chevron is a world six super major oil

company.

21. In which district of Madhya Pradesh (MP) is the industry alternators of Diesel engine

proposed in the rail budget 2012-13.

a) Gwalior b) Bhopal c) Vidisha d) Jabalpur

Ans: C

Explanation: In Vidisha district of Madhya Pradesh is the industry alternator of Diesel engine

proposed in the rail budget 2012-13.



22. Deficit financing means that the government borrows money from the:

a) Central Bank of India b) Reserve Bank of India

c) World Bank d) None of these

Ans: (b)

Explanation: The deficit financing means that the government borrow money from the world bank.

World bank is situated in Washington (America). Deficit financing is defined as financing the

budgetary deficit through public loans and creation of new money.

23. The Government of India has recently added the following currency for allowing Indian

companies to raise debts through external commercial borrowings.

a) Chinest Yuan b) Yen (Japan) c) Batt (Thailand) d) Takka (Bangladesh)

Ans: A

Explanation: The government of India has recently added the Chinest Yuan currency for allowing

Indian companies to raise debts through external commercial borrowings.

24. Which of the following pairs is not correctly matched with given company/project:

Project Company

a) Integrated steel plant at Jalpur (Odissa) 1. Steel Authority of India

b) Kayamkulom Power Plant (Kerla) 2. National Thermal Power Corporation

c) Power Plant at Jamnagar (Gujrat) 3. Essar Power

d) Nabi nagar power plant (Bihar) 4. Indian Railways

Ans: C

Explanation: Reliance power ltd. has dropped its 20,000 crore pet coke-based power generation

project in Jamnagar. So except all are correctly matched with their pairs.

25. Select the correct statement about the shut - down price:

a) That lower price of a firm’s product at which the firm decides to shut down the firm.

b) The cost of a firm pays in the form of interest, salaries and fines etc. once it decides to shut

down the firm.

c) The price, like a bid price, which is demanded by a firm from the other firm for shutting

down its operations.

d) The prices a limited liability firm needs to pay as compensation to the workers before

shutting down the firm.

Ans: A

Explanation: Such situations occur when it becomes impossible for the firm to recover even the

short-run variable cost. The great depression in 1929 saw hundreds of such instances in

Europe and the United State of the America.

26. The economic strength of a country is measured by which of the following developments:

a) The development of the manufacturing industries

b) The development of the literacy ratio

c) The development of the health status.

d) The development of the population growth.

Ans: A

Explanation: Manufacturing industries help in modernising agriculture. It reduces the heavy

dependence of people on agriculture income by providing them jobs in tertiary and secondary

sectors. Export of manufactured goods expands trade and commerce and brings in much



needed foreign exchange. In manufacturing, raw materials are transformed into a wide variety

of furnished goods which are of higher values.

27. The Iron and the steel industries of public sector in India market their steel through:

a) Various government agencies b) TISCO

c) Steel Authority of India Limited d) Individually

Ans: C

Explanation: SAIL is India largest steel producing companies. It has five integrated steel plants and

three special plants and one subsidiary in different part of country. SAIL has turnover of

Rs.49,250 crore, the company among the seven maharatna of country, central public sector

enterprises.

28. Which two extremes location are connected by the South-North Corridor:

a) Amritsar and Tuticorin b) Srinagar and Triunanatpuram

c) Srinagar and Tuticorin d) Srinagar (J & K) to Kanyakumari

Ans: D

Explanation: North south Corridor connects Srinagar (J & K) to Kanyakumari (Tamil Nadu) and

East –West Corridor connects Silchar (Assam) to Porobandar (Gujrat).

North-South Corridor connects North and South part of India. It plays vital role for

transportation and economy.

29. Which one of the following industries due to its seasonal nature, is ideally situated to the

cooperative sector:

a) Sugar b) Jute textile c) Automobile d) Cotton textile

Ans: A

Explanation: Sugar industry is ideally situated to the cooperative sector. Cooperative is an

autonomous association of persons who voluntarily cooperates for their mutual, social,

economic and cultural benefit. Robert Owen was a social reformer and pioneer of the

cooperative movement.

30. Which one of the following industries provide single window service and high data

communication facilities to software experts:

a) Automobile industry b) Information technology

c) Chemical industry d) Iron and steel industry

Ans: B

Explanation: Software technology parks provide single window service and high data

communication facility to software experts.

Significance of IT industry in India:

1. A major impact of this industry has been an employment generation upto 31 March, 2005,

the IT industry employed over one million persons.

2. The number is expected to increase eight fold in next 3 to 4 years.

31. Which one of the following factors is considered as the most prominent one in industrial

location in a region:

a) Availability of raw materials b) Market

c) Cheap labour d) None of these

Ans: A



Explanation: Availability of raw material: The factories needed to be nearer to the location of raw

materials if they are heavy and bulky to transport e.g. Iron and steel and cement industries are

located near the source of raw materials. It cuts down the cost of transportation.

Labour: A large cheap labour force is required for labour-intensive manufacturing industries.

High tech industries have to located where suitable skilled workers are available.

32. Which one of the following is not correct regarding the importance of manufacturing

industries:

a) Export of manufactured goods brings in foreign exchange.

b) Manufacturing industries encourage trade and commerce.

c) They generate jobs in the secondary and tertiary sectors

d) The economic strength of a country is measured in terms of the raw material it possesses.

Ans: D

Explanation: The economic strength of a country is not measured in terms of the raw material it

possesses. It is measured in GDP. GDP means Gross Domestic Product. It is the total sum of

monetary values of final goods and services in affixed time of country economy.

33. Consider the following statements regarding the source of revenue of Panchayat:

1. Grant in aid from government. 2. Allotted by state finance commission.

3. NABARD 4. RBI

Choose the correct option:

a) 1 and 2 b) 2 and 3 c) 1 and 4 d) None of these

Ans: A

Explanation: Panchayat Raj is the three tier system of administration for the development of rural

areas. The main source of the income of the Panchayat are grant in aid from government, a

percentage of land revenue collection, donation, taxes, duties, income from village common

lands. It is also funded from the amount allotted by state finance commission.

34. Which one of the following department is maintaining National super highways:

a) Central Public Works Department b) National Public Work Department

c) National Highway Authority of India d) State Public Works Department

Ans: C

Explanation: National Highway Authority of India is an autonomous agency of government of

India responsible for management of a network of over 70,000km of National highway in

India. It is a nodal agency of the ministry of Road transport and high way.

35. Which one of the following types of roads are being constructed and maintained by National

Highway Authority of India.

a) Golden quadrilateral super highway b) National highway

c) State highway d) Border roads

Ans: A

Explanation: National Highway Authority of India is an autonomous agency of government of

India, responsible for management of a network of over 70,000 km of National highways in

India. It is a nodal agency of the ministry of Road transport and highway.

36. What is correct relating to the ‘total product’?

1. A product manufacture with all state of the art input needed no upgradation or

modification.



2. A product which comes in its totality but cannot be used directly and it requires

assemblage.

a) Only 2 is correct b) Only 1 is correct

c) Both 1 and 2 are correct d) None of these

Ans: D

Explanation: The main product support by many peripheral product which may include loan

facility, after sale service is known as total product. This is also called ‘core product’.

37. What is correct related to the term ‘transfer payment’?

a) The expenditure by government for which it received no goods or services, such as taxes

collection, non-employment allowance etc.

b) The minimum return in asset the must earn to prevent its transfer to the next best

alternative use.

c) a and b

d) None of these

Ans: A

Explanation: Statement (a) is correct about term ‘transfer payment’. All less making activity done

by the government in the social sector come under it – poverty alleviation, healthcare,

education, social security.

38. Match the following and select the correct answer using the code given below:

List-I List-II

A) Upward pull of price and wages by each other 1. Inflation Spiral

B) Profit calculation after adjusting inflation 2. Inflation Accounting

C) Inflation excluding manufactured items 3. Core Inflation

D) The bonus brought by inflation to borrowers 4. Inflation Premium

Codes: A B C D

a) 1 2 3 4

b) 2 3 4 1

c) 3 4 1 2

d) 4 1 2 3

Ans: A

Explanation: Upward pull of price and wages by each other - Inflation Spiral

Profit calculation after adjusting inflation - Inflation Accounting

Inflation excluding manufactured items - Core Inflation

The bonus brought by inflation to borrowers - Inflation Premium

39. Disguised under employment refers to situation when:

a) Workers are under paid despite doing full time job.

b) There is coexistence of unemployment and inflation

c) The economic experience under employment unequillibrium

d) None of these

Ans: D

Explanation: An economy demonstrates existence of disguised unemployment, where part of the

labour force is either left without work or is working in a redundant manner, where worker

productivity is essentially zero. Unemployment that does not effect the aggregate output.

40. Which of the following reefer’s to disinflation?



a) A policy of moderating rising price and also pull the system out of the depth of depression

b) A simultaneous existence of high rate of inflation and high unemployment in the country

c) A process of reversing inflation, but without creating unemployment and reducing output.

Ans: C

Explanation: Disinflation is the reduction in the general price level of goods and services in a

nation gross domestic product over time. It is opposite of relation. Disinflation occurs, when

increase in the ‘Consumer price level’ slowdown from pervious periods when the price rising.

41. Which of the following phenomenon is/are associated with the demographic dividend:

1. Decline in youth dependency rate.

2. Rise in fertility rate.

3. A rising share of working population

Code:

a) Only 3 is correct b) Only 1 and 2 are correct

c) 1, 2 and 3 are correct d) Only 2 is correct

Ans: C

Explanation: Demographic dividend is a rise in the rate of economy growth due to rising share of

the working age people in population. This usually occurs when working population is rising,

fertility rat is declining and youth dependency ratio of declining.

42. Inclusive growth can be measured by which factors:

1. Per Capita Income 2. HDI 3. MPI 4. ZDI

a) 1and 2 b) 2 and 3 c) 1,2 and 3 d) 1,2,3 and 4

Ans: D

Inclusive growth can be measured by

Per Capita Income

Human Development Index

Multidimensional Poverty Index

Gender Desparity Index etc.

43. Which of the given statement is/are true about Western disturbances?

1. This is a non-monsoonal precipitation pattern drive by the Ester lies.

2. There are the extropical storms originating in the Mediterranean sea.


c) 1 and 2 are correct d) 1 and 2 are not correct

Ans: B

Explanation: Western disturbance is the term used to describe and extropical storm originating in

the Mediterranean sea, that brings sudden winter rain and snow to the North-Western part of

the Indian subcontinent.

44. Why is there a tendency in the sugar industry to shift and concentrate in southern and western

states?

a) Better transport facilities and nearness of the market.

b) Higher sucrose content, longer crushing season and successful cooperatives.

c) Seasonal nature of the industry

d) Old and inefficient methods of production in North India

Ans: B



Explanation: The sugarcane produced in the southern and western states has a higher sucrose

content.

The cooler climate ensures a longer crushing season. Most of the sugar mills of the area are

under the cooperative sector. Regular supply of raw material is available here.

45. Which one of the following does not influence the location of industries:

a) Availability of raw material and electricity

b) Availability of markets and capital

c) Availability of raw material and labour

d) Availability of educational and medical services

Ans: D

Explanation: The factors affecting the location of industry are:

1. Availability of raw material – The factory needs to be close to the location of raw material

if they are heavy and bulky to transport e.g. iron and cement industries.

2. Labour 3. Power 4. Capital 5. Transport 6. Market

7. Government policies

Availability of educational and medical services does not influence the location of industries.

46 Which one of the following industries used limestone as a raw material:

a) Aluminium b) Fertilizer c) Chemical d) Cement

Ans: D

Explanation: For cement industry following are essential:

1. It requires bulky and heavy raw materials like-limestone, silica, alumina and gypsum.

2. Coal and electric power are also required part from rail transportation

Cement is essential for construction activities-building, bridges etc.

47. Regular supply of electricity and an assured source of raw material at minimum cost are the

prime factors for the location of which one of the following industries:

a) Iron and steel b) Aluminium smelting c) Steel d) Cement

Ans: C

Explanation: Two prime factors responsible for location of aluminium industry are:

1. Regular supply of electricity

2. An assured source of raw material at minimum cost. Regular supply of electricity

is very essential for Aluminium production. Aluminium production directly depends on

amount of electricity.

48. The helicopter services to Oil and Natural Gas Corporation in its offshore operations are

provided by:

a) Air India b) Indian Airlines c) Pawanhans Helicopters d) Alliance Air

Ans: C

Explanation: Pawanhans Helicopters provides services to Oil and Natural Gas Corporation for its

offshore operation. Pawanhans Helicopters Limited is a helicopter company based in Noida

(UP). The operation are based at the Juhu aerodrome in Ville Parle in Mumbai. Other than

providing helicopter services to ONGC to its offshore location, this is a public sector

company.

49. Which one of the following is not true regarding the National Jute Policy of 2005:

a) Creating awareness about the use of biodegradable materials

b) Ensuring good prices to the jute farmers



c) Increasing productivity

d) Improving quality of jute

Ans: A

Explanation: The centres National Jute Policy 2005 proposes a slow of measures aimed at making

the Indian Jute Industries competitive. The policy draft which was discussed by a consultative

committee attached to the textile ministry. According to the policy, a jute technology mission

would be initiated with an appropriate substructure of mini-mission on the line of technology

mission of the cotton industry.

50. Textile industry is an example of :

a) Agro based industry b) Cooperative sector industry

c) Mineral based industry d) Marine based industry

Ans: A

Explanation: Textile industry is agro based industry. The textile industry in India traditionally,

after agriculture, is the only industry that has generated huge employment for both skilled and

unskilled labour in textile. It is second largest employment generating in India.

51. Mangla, Bhagyam and Aishwarya are in the news due to which one of the following reasons:

a) These are the main oil reserves in the Barmer Block (Rajasthan)

b) These are the Indian expeditions for Arctic.

c) These are the Himalayan Glaciers, which are getting reduced in sizes because of climate

change.

d) None of these

Ans: A

Explanation: Mangla, Bhagyam and Aishwarya are the main oil reserves in the Barmer Block

(rajasthan). These reserves were discovered by Cairns Energy, a UK- based company.

52. Which of the following companies has started rural marketing network known as ‘e-

chaupal’s?

a) Hindustan Liver b) Dabur c) ITC d) None of these

Ans: C

Explanation: In the above option c is correct about standard rural marketing network called ‘e-

chaupal’s because ITC that started a rural marketing network is known as ‘e-chaupal’ so in

the given option c is correct malched with the given statement.

53. Mentioned the following statements regarding an industry?

1. Power consumption 2. Labour force

3. Capital investment 4. Business turnover

Code:

a) 1 and 2 are correct b) Only 2 is correct

c) Only 1 and 4 are correct d) 1, 2 and 3 are correct

Ans: D

Explanation: The main factors which decide/determine the size and nature of the industry are:

Power consumption, Labour force, Capital investment etc. So code d is correct answer.

54. Consider the following statements about depreciation of currency:

1. Depreciation occur only, when because of a change in exchange rates, a unit of one

currency buy faver units of another currency.



2. The depreciation of a currency refers to increase the value of that country currency.

Code:


c) Both 1 and 2 are not correct d) 1 and 2 are correct

Ans: A

Explanation: The statement 2 is not correct because depreciation of currency refer to decrease in

the value of currency of any country but statement 1 is correct because depreciation is

advantageous in export.

55. The sensitive index of Bombay Stock Exchange keep on changing positively and negatively

both. Which of the following is/are main reason, which contributes for this sudden change in

the same?

1. Recession in EU 2. Continuous funds flow

3. Higher GDP growth 4. Higher volume of forex services

a) Only 1, 2 are correct b) Only 4 is correct

c) 2, 3 and 4 is correct d) 1, 2, 3 and 4 is correct

Ans: D

Explanation: The economy and stock market are very closely tied together. All of the above are

cause a variation in the index, since all of them are affect the economy of the India.

56. Consider about open market operation (OMO).

1. OMO influence the volume of money credit in the economy.

2. In India OMO is an activity, by the RBI to buy or sell the government bond on the open

market.


c) Both 1 and 2 are correct d) Both 1 and 2 are incorrect.

Ans: C

Explanation: OMO is an activity by the Reserve Bank of India to buy or sell government bonds in

the open market. OMO influence the volume of money credit in the economy.

So option (1) and (2) or (c) is correct.

57. Consider the following factor regarding an industry:

1. Power consumption 2. Labour force

3. Capital investment 4. Business turnover

Which of these determine the size and nature of industry?

a) 1, 3, 4 b) 1, 2, 4 c) 1, 2, 3 d) 4 and 2

Ans: C

Explanation: The factors which determine the nature and the size of an industry are (i) Power

consumption, Labour force and Capital investment. These three are determine nature and size

of industry.

58. Consider the following statements regarding the centre for economic and social studies,

Hyderabad:

1. The Centre for Economic and Social Studies (CESS) is an Indian autonomous research

institute, established in 1980 to facilitate research activity in economics and social sciences.

2. The M.Phil programme was started in 1986 and the Ph.D programme was started in 1991.

Select the correct statement.




Ans: C

Explanation: This institute takes up research in the fields of Rural Development and Poverty,

Agriculture and Food Security, Irrigation and Water Management, Public Finance,

Demography, Health and Environment.

59. Consider the following statements about the ’Maharatnas’:

1. They can take investment decisions upto Rs.5,000 crore by themselves.

2. Such classification is done on the basis of the financial size of the PSUs.

Select the correct above statements.


Ans: C

Explanation: Maharatnas are allowed an investment of upto Rs.5,000 crore in one project without

any prior permission from the government. Presently, there are seven Maharatnas namely

SAIL, ONGC, NTPC, IOC, CIL, BHEL and GAIL.

60. Maintain the following statements about Federation of Indian Chamber of Commerce and

Industry (FICCI):

1. FICCI draws its membership strictly from the corporate sector, both private and public,

including SMEs and MNCs.

2. Established in 1927, on the advice of Mahatma Gandhi by JRD Tata and Ramkumar

Kankarwa. It is the largest, oldest and the apex business organization in India.


c) Both incorrect d) Both correct

Ans: D

Explanation: Both statements are true. FICCI established in 1927 on the advice of Mahatma

Gandhi by JRD Tata and Ramkumar Kankarwa. It is the oldest, largest and apex business

organization in India. Statement (d) is also correct.

61. CRISIL is related to:

a) Evaluation of company credit letters

b) It provides financial assistance to industries

c) It provides financial aid to rural development

d) Arrangement of finance for export

Ans: A

Explanation: CRISIL Credit rating information services of India Limited is a global analytical

company providing ratings, research, and risk and policy advisory services. CRISIL, majority

shareholder is standard & Poor’s a division of the McGraw Hill companies and provider of

financial marketing.

62. Which of the following is the first Indian private company to sign an accord with government

of Myanmar for oil exploration in two offshore block in the country:

a) Essar oil b) NHPC c) OIL d) ONGC

Ans: A

Explanation: Essar oil is the first Indian private company to sign an accord with government of

Myanmar for oil exploration in two offshore blocks in the country. So in the given selected

options, option (a) is correct about the given statement.

63. Match the following List-1 and List-2:

List-I List-II



(Organization) (Year)

A) Mercosur 1. 1995

B) NAFTA 2. 1992

C) G-20 3. 1997-98

D) OPEC 4. 1960

Codes: A B C d

a) 1 2 3 4

b) 1 2 4 3

c) 2 3 1 4

d) 4 3 1 2

Ans: A

Explanation: Mercosur - 1995

NAFTA - 1992

OPEC - 1960(Bagdad)

G-20 - 1997-98

64. Select the correct statements about the popular stock market term reverse yield gap from the

option given below.

a) A situation when the capital gains compensate the negative impact of inflation on the

equities’ returns.

b) A situation when the returns of government securities are in excess over the equities

c) The situation when due to low long-term capital gains, tax returns on the government

securities become higher.

d) The instance of comparatively higher inflation which depletes the returns earned by

investors on government bonds.

Ans: A

Explanation: Such a situation arises during periods of high inflation because equities provide

capital gains, which compensate the negative impact of inflation on them while government

summitries do not get this advantage. This is away wherein during higher inflation it is

suggested to invest in equities rather than government bonds.

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