Economics (Part-II) (Railway)

Total Questions: 50

1. The relative value of currency is called_________. [RRB RPF Constable Exam, 17.01.2019 Shift-III]

(1) Tariff
(2) Customs
(3) International Balance Sheet
(4) Foreign Currency Exchange Rate

Correct Answer: (4) Foreign Currency Exchange Rate

Solution:The exchange rate gives the value of one currency against to another currency.

• The value that a currency has in relation to it is called foreign currency exchange rate.

• Exchange rates can be either fixed or floating.

• Fixed exchange rates are decided by the central banks of a country whereas floating exchange rates are fixed by the mechanism of market demand and supply.

2. Financial support is regulated by________. [RRB RPF Constable Exam, 17.01.2019 Shift-III]

(1) State Bank of India
(2) Reserve Bank
(3) Industrial Bank
(4) Union Bank of India

Correct Answer: (2) Reserve Bank

Solution:The Reserve Bank of India is the main body controlling monetary policy in India.

• Financial support controlled by RBI.

• It controls the flow of money in the market through various instruments of monetary policy.

3. Which of the following committees is called the "Current Economy Committee"? [RRB RPF Constable Exam, 17.01.2019 Shift-III]

(1) Public Accounting Committee
(2) Public Undertaking Committee
(3) Ethics Committee
(4) Estimate Committee

Correct Answer: (4) Estimate Committee

Solution:The Estimates Committee is also known as the continuous economic committee.

• It has 30 members and all these members are from the Lok Sabha.

• There are no Rajya Sabha members in the Estimates Committee.

4. The overuse of public property resources is called________. [RRB RPF Constable Exam, 17.01.2019 Shift-III]

(1) Consumption
(2) Tragedy of public resources
(3) Poor source
(4) Misuse of public resources

Correct Answer: (2) Tragedy of public resources

Solution:The overuse of public property resources is called tragedy of the commons. "

• This theory propunded by British economist William Forster Lloyed in 1883.

5. __________is the market where there are less sellers and more buyers? [RRB RPF Constable Exam, 17.01.2019 Shift-III]

(1) Oligopoly
(2) Customer monopoly
(3) Monopoly
(4) Advertisement

Correct Answer: (1) Oligopoly

Solution:Oligopoly represent the very few sellers and to much buyers. Oligopoly is a form of imperfect competition.

• Oligopoly refers to the market condition when there are limited number of firms in an Industry.

6. The Government of India buys foodgrains through_______. [RRB RPF Constable Exam, 17.01.2019 Shift-III]

(1) Food Corporation of India
(2) National Agricultural Market
(3) Ministry of Agriculture
(4) Merchant's shop

Correct Answer: (1) Food Corporation of India

Solution:The Food Corporation of India (FCI) established in 1965, the country's main grain handling agency, is the world's largest stockholder of foodgrains.

• It is nodal central agency of the Government of India. along with other State Agencies undertakes procurement of wheat and paddy under price support scheme.

7. The Mahatma Gandhi National Employment Guarantee Scheme was launched in_________. [RRB RPF Constable Exam, 17.01.2019 Shift-III]

(1) 2010
(2) 1995
(3) 2000
(4) 2005

Correct Answer: (4) 2005

Solution:The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is an Indian legislation enacted on August 25, 2005.

• The MGNREGA provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage.

8. Which of the following organisations estimates poverty line in India? [RRB RPF Constable Exam, 20.01.2019 Shift-III]

(1) NITI Aayog
(2) CSO
(3) NSSO
(4) Finance Commission

Correct Answer: (1) NITI Aayog

Solution:Poverty estimation in India is now carried out by the NITI Aayog's task force through the calculation of poverty line based on the data captured by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation (MOSPI).

• The NITI Aayog as a policy think tank has replaced the Planning Commission, which was earlier responsible for calculating the poverty line in India.

9. Imposition of tax leads to disproportionate rise in price level, what does it indicates? [RRB RPF Constable Exam, 20.01.2019 Shift-III]

(1) cascade Impact
(2) Substantial Impact
(3) Income Impact
(4) Price Impact

Correct Answer: (1) cascade Impact

Solution:A progressive tax is based on the taxpayer's ability to pay.

• It imposes a lower tax rate on low-income earners than on those with a higher income.

• This is usually achieved by creating tax brackets that group taxpayers by income ranges.

10. Tax imposed by government that is independent of income is called________. [RRB RPF Constable Exam, 20.01.2019 Shift-III]

(1) Income Tax
(2) Lump-sum Tax
(3) Corporate Tax
(4) Sales Tax

Correct Answer: (2) Lump-sum Tax

Solution:A lump-sum tax is a speclal way of taxation, based on a fixed amount rather than on the real circumstance of the taxed entity.

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