1. Who among the following scholars is associated with Law of Rent?
[A] Richard Jones
[B] Thomas Robert Malthus
[C] David Ricardo
[D] Adam Smith
Show Answer
Correct Answer: C [David Ricardo]
Notes:
David Ricardo, an English classical economist, developed the law of rent in 1809. He presented the law in his book On the Principles of Political Economy and Taxation in 1821.
Ricardo’s theory defined rent as the portion of the earth’s produce that is paid to the landlord for the original and indestructible powers of the soil. In other words, rent is the price paid for the use of land.
Ricardo developed his theory to explain the origin and nature of economic rent. He used the economy and rent to analyze the large rise in corn and land prices during the Napoleonic wars (1805-1815).
The term “Ricardian rent” comes from Ricardo’s theory.
2. Which among the following committee suggested to establish “Insurance Regulatory Authority in India”?
[A] Dandekar Committee
[B] Malohtra Committee
[C] Rangrajan Committee
[D] Dutt committee
Show Answer
Correct Answer: B [Malohtra Committee]
Notes:
The Insurance Regulatory & Development Authority of India (IRDAI) was set up based on the recommendations of the Malhotra Committee. It was set up as a statutory body in the year 2000. It is headquartered at Hyderabad.
3. Rs. 100 notes are printed in which of the following?
[A] The Indian Security Press Nasik
[B] The Security Printing Press Hyderabad
[C] The bank Note Press, Dewas
[D] All1,2&3
Show Answer
Correct Answer: D [All1,2&3]
Notes:
The currency notes in India are printed in 4 presses. Two of them are owned by the Government of India and are located at Nashik and Devas. Two others are owned by the Reserve Bank of India at Mysore and Salboni.
4. In which year the original concept of Goods and Services Tax (GST) in the present form had come to India in a formal manner?
[A] 2000
[B] 2002
[C] 2004
[D] 2006
Show Answer
Correct Answer: C [2004]
Notes:
In 2004, a task force headed by Dr. Vijay Kelkar, put forward the recommendation on the need for a national GST to replace the existing indirect tax structure.
5. Wage Spiral is a concept related to which of the following?
[A] Demand Pull Inflation
[B] Cost Push Inflation
[C] Deflation
[D] Disinflation
Show Answer
Correct Answer: B [Cost Push Inflation]
Notes:
A wage spiral occurs when workers demand higher wages in response to rising prices, and employers raise prices in response to higher wage costs. This can create a cycle of wage increases and price increases, leading to overall inflation in the economy. Inflation can be caused by a variety of factors, such as an increase in the money supply, high levels of government spending, or a decrease in the availability of goods and services. Inflation can also be influenced by factors such as the state of the economy, the level of competition in the market, and the level of workers’ productivity.
6. Which among the following agency is responsible for enforcement of Foreign Exchange Management Act 1999 and Prevention of money Laundering Act 2002 in India?
[A] Reserve Bank of India
[B] Department of Revenue
[C] Enforcement Directorate
[D] Income Tax Department
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Correct Answer: C [Enforcement Directorate]
7. The Government uses which among the following as last resort in deficit financing?
[A] External Borrowing
[B] Internal Borrowing
[C] External Grants
[D] Printing Currency
Show Answer
Correct Answer: D [Printing Currency]
8. Who, among the following, has the ability to borrow funds using the “Cash Management Bills” method in India?
[A] Common Citizens
[B] Private Business Entities
[C] Non-Governmental Organizations
[D] Government
Show Answer
Correct Answer: D [Government]
Notes:
Cash Management Bills are very short tenure treasury bills that are issued by the Government of India to meet its immediate cash needs. They are not issued on a regular basis and offer a highly reliable return, due to being backed by the government. Private entities, NGOs, and individuals cannot take advantage of these, as they are strictly for government use.
9. For which among the following purposes, maximum share of the Natural Gas produced in India is used?
[A] Fertilizers
[B] Power Production
[C] Cooking Gas
[D] Industrial Uses
Show Answer
Correct Answer: B [Power Production]
Notes:
Around 60% of the natural gas produced in India is used for Energy purpose. Out of this, maximum amount is used in Power Generation, followed by Industrial Fuel and LPG use. In Non-energy purposes, Maximum amount of Natural Gas is used in India in Fertilizer Industry.
10. In context with Banking, which among the following is the nearest meaning of Amortization?
[A] Repayment of Principal and Interest
[B] Repayment of Principal
[C] Repayment of loan in one lump sum
[D] None of the above is a correct answer
Show Answer
Correct Answer: A [ Repayment of Principal and Interest ]
Notes:
Amortization refers to the gradual repayment of a loan over time through regular payments that cover both principal and interest. This process allows borrowers to pay off their debt in manageable installments rather than in a single lump sum. The term originates from the Latin “amortire,” meaning “to kill off,” reflecting the idea of reducing debt. In finance, amortization schedules detail each payment’s allocation towards interest and principal, providing clarity on the loan’s repayment structure.
