General Economics Model Test paper For ICAI CPT 2010 Exams

General Economics Model Test paper For ICAI CPT 2010 Exams
1. ‘Golden Hand Shake Scheme’ refers to
(a) Agricultural Policy
(b) Exit Policy
(c) New Industrial Policy
(d) None of these
2. Which of the following institutions providing finance to the industrial sector was the first to be set up ?
(a) Industrial Reconstruction Corporation of India
(b) Industrial Finance Corporation of India
(c) Industrial Credit and Investment Corporation of India
(d) Industrial Development Bank of India

3. Which of the following is associated with the consultancy business, in the transport sector of the Government of India?
(a) IRCON
(b)IFCI
(c) RITES
(d) CONCOR
Directions: Given below are two statements labeled as Assertion (A) and Reason (R). Which of the following is true in their context?
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and Rare true but K is not the correct explanation of A
(c) A is true but R is false
(4) A is false but R is true
4. Assertion (A) : The ratio of direct taxes to gross domestic product in India has been falling in the recent past.
Reason (R) : Unaccounted ‘black’ money has grown rapidly.
5. Assertion (A) : In inflation, there is increase in money – supply and the rise in price level.
Reason (R) : The rise in price level is due to shortage in supply of essential consumer goods.
6. Assertion (A) : The Five Year Plans form the basis of Indian economy.
Reason (R): India follows Soviet pattem of planning.
7. Assertion (A) : When the price of X rises, the quantity demanded of Y increases.
Reason (R): X and Y are substitutes
8. GATT headquarters is located at ?
(a)Geneva
(b) Paris
(c)Washington
(d) Hague
9. Voting rights in the International Monetary Fund (IMF) are distributed on the basis of ?
(a) one country, one vote
(b) proportion to the share of the income of the country in the world income
(c) proportion to contributions given by each country
(d) proportion to quota allocated to countries from time to time
10. The headquarters of IMF is situated in
(a)England
(b) New York
(c)Washington
(d) Tokyo
11. Which of the following economic groups are the organisations of the Third World Countries?
1 South Commission
2. Group of 77
3. Council of Mutual Economic Assistance
4. Association of South- East Asian Nation
(a)1,2 and 3
(b) 1,2 and 4
(c)1,3 and 4
(4) 2,3 and 4
12. Most Favoured Nations (MFN) clause under GATT implies
(a) most favour to some countries
(b) no favour to some countries
(c) most favour to all countries
(d) no favour to any country
13. Which of the following types of borrowings from the IMP has the Softest servicing conditions
(a)Oil facility
(b) ESAF
(c) Second Trancha Loan
(d) SAP
14. The main function of I.M.F. is to
(a) finance investment loans to developing countries
(b) act as a private sector lending ann of the World Bank
(c) help to solve balance of payment problems of member countries
(d) arrange international deposits from banks

15. World Bank is a body
(a) of non -official, generous individuals
(b) that controls world wide foreign exchange operations
(c) of major banks operating in different countries
(d) that gives aid to developing countries
16. The World Investment Report (WIR) is publish ed by which of the following bodies?
(a) General Agreement on Tariffs and Trade (GATT)
(b) Organisation for Economic Cooperation and Development (OECD)
(c) International Monetary Fund (IMF)
(d) United Nations Conference on Trade and Development (UNCTAD)
17. The International Bank for Reconstruction and Development is located at?
(a) Geneva
(b) Washington
(c) London
(d) New York
18. Which of the following were objectives for which the International Monetary Fund was established?
1. Promoting International Monetary Cooperation
2. Expanding International Trade
3. Lessening disequilibrium of balances of payment
4. Avoiding competitive exchange depreciations
(a) l,2 & 3
(b) l, 3& 4
(c)2 & 4
(d) l,2,3 & 4
19. ‘Conditionality ‘of an I.M.F; loan to a member country stands for
(a) interest and repayment terms of the loan
(b) an assessment of the credit worthiness of the borrower
(c) schedule of disbursement of loan installments
(d) the policy steps which the borrower country must take
20. The Asian Development Bank has its head quarters in ?
(a)Manila
(b) Kathmandu
(c)Tokyo
(d) Colombo
Answers
1    b
2    b
3    c
4    a
5    a
6    c
7    a
8    a
9    d
10    c
11    b
12    c
13    b
14    c
15    d
16    d
17    b
18    d
19    c
20    a

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