General Knowledge Economics Practice Paper For CLAT 2020

GENERAL KNOWLEDGE – ECONOMICS
SET 1

1. On the recommendation of which committee was NABARD established?

  • Shivraman

  • Rangarajan

  • Malegam

  • Vijay Kelkar​​ 

Answer (a)

2. RBI was established on _____________.

  • 1st​​ April 1925

  • 1st​​ April 1935

  • 1st​​ April 1945

  • 1St​​ April 1955

Answer (b)
trivia : It was established on the recommendation of – Hilton Young Committee​​ 

 ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​ 1
st​​ Governor :​​ Osborne​​ Smith
 ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​ 1
st​​ Governor ( Indian Origin) : CB Deshmukh

3. One Rupee note bears the signature of ___________

  • RBI Governor​​ 

  • Finance Minister

  • Finance Secretary

  • Finance Minister​​ 

Answer (c)

4. Which of the following organization is the Mutual Fund Market Regulator?

  • SEBI

  • AMFI

  • CIBIL

  • CRISIL

Answer (a)
SEBI stands for Security exchange Board of India​​ 

5. What Does “T” in RTGS stand for ?

  • Transaction​​ 

  • Transfer

  • Tax

  • Time

Answer (d)
RTGS stands for Real Time Gross Settlement.

6. The Discounting rate at which RBI Borrows Government securities from commercial bank is known as ?

  • Repo Rate

  • Reverse Rate

  • Deposit Rate

  • Base Rate​​ 

Answer (a)​​ 

7. Which Among the following is an instrument of monetary policy used by the RBI?

  • Base Rate​​ 

  • PLR

  • CRR

  • BPLR​​ 

Answer (c)​​ 
CRR stands for Cash Reserve Ratio

8. RBI was nationalised in the year​​ 

  • 1949

  • 1952

  • 1955

  • 1964

Answer (a)

9. When was Liberalized Exchange Rate Management System (LERMS) started in India ?

  • 1900

  • 1996

  • 1992

  • 1998

Answer (c)​​ 

10. ___________ is the percentage of total deposits of a bank which it has to keep with itself in form of liquid Asset.

  • Statutory Liquidity Ratio (SLR)

  • Cash Reserve Ratio ( CRR)

  • Statutory Reserve Ratio​​ 

  • Cash Ratio​​ 

Answer (a)

11. National Income of India is Estimated by –

  • NCAER

  • Ministry of Statistics​​ 

  • Central Statistical Office

  • Ministry of Finance

Answer (b)

12. The Exchange rate in India is dependent upon ​​ :​​ 

  • Government policy

  • Demand Supply forces

  • Monetary Policy

  • Only II

  • II and III

  • I and II

  • I, II and III

Answer (a)

13. ‘ Fiat Money’ is Defined as the Money which is​​ 

  • Accepted Internationally​​ 

  • Accepted temporarily in lieu of Gold

  • Issued by Keeping Gold and Silver as Deposit​​ 

  • Decreed as Money by the government​​ 

Answer (d)

14. In India which among the following is/are a part of legal Tender Money?

  • Both coins and currency notes

  • Both coins and bank drafts

  • Both currency notes and SDR’s​​ 

  • Only currency notes issued by RBI

Answer (a)

15. Which of the following is not an instrument in the Hands of RBI to Check the​​ inflation in our country?

  • Open Market Operations​​ 

  • Special Drawing Rights

  • Bank Rate

  • Cash Reserve Ratio (CRR)

Answer (b)

16. When​​ RBI sells Government Securities, its result is that –

  • The Liquidity in the Banking System Increases​​ 

  • The Liquidity in the banking system remains unchanged​​ 

  • The liquidity In the banking system gets diminished

  • None of the above​​ 

Answer (c)

17. Demand Pull Inflation can be caused by which among the following​​ 

  • A decline I consumption expenditure

  • A sharp increase in lending rates​​ 

  • A steep decline in Income Tax​​ 

  • An increase in direct taxation​​ 

Answer (c)

18. RBI isn’t expected to play the role of –

  • Acting as cleaning House

  • Acting as banker to the government

  • Managing the forex

  • Accepting the deposits from general public

Answer (d)

19. __________​​ is an​​ agreement under which issuing Bank at the request of the Importer undertakes to make payment​​ to the exporter against certain specified documents.

  • ​​ Bill of exchange

  • Letter of exchange

  • Letter of credit

  • Bill of entry

Answer (c)

20. ​​ ____________ are the Beneficiaries of the “ Reserve Mortgage Scheme”.

  • Government Employees​​ 

  • Senior Citizens

  • Unemployed person

  • Persons of BPL Category​​ 

Answer (b)​​ 

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