Question 1

Which of the following is included in the Current Account of Balance of Payments?

Accepted Answer

The Current Account of Balance of Payments includes trade in goods (visible trade), trade in services (invisible trade), income (primary income like remittances and investment income), and current transfers. Capital transfers and financial investments are part of the Capital and Financial Account, not the Current Account.

Question 2

Which of the following best describes 'Fiscal Deficit' in the Union Budget?

Accepted Answer

Fiscal Deficit is the difference between the government's total expenditure and its total receipts excluding borrowings. It indicates the total borrowing requirements of the government. It is expressed as a percentage of GDP. Revenue deficit, on the other hand, is the excess of revenue expenditure over revenue receipts.

Question 3

Which of the following best defines 'Inflation'?

Accepted Answer

Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time. As prices rise, each unit of currency buys fewer goods and services, effectively reducing the purchasing power of money. It is measured in India primarily through CPI (Consumer Price Index) and WPI (Wholesale Price Index).

Question 4

Which Five Year Plan of India gave primary emphasis to 'Growth with Social Justice' and aimed at reducing regional disparities?

Accepted Answer

The Twelfth Five Year Plan (2012-2017) adopted the approach of 'Faster, Sustainable and More Inclusive Growth'. However, the Eleventh Five Year Plan (2007-2012) explicitly emphasized 'Inclusive Growth' and social justice with focus on reducing poverty and regional imbalances. This remains a static historical fact about plan objectives.

Question 5

Which of the following is the primary objective of the Public Distribution System (PDS) in India?

Accepted Answer

The Public Distribution System (PDS) is a food security mechanism established under the Constitution to distribute essential commodities like rice, wheat, and sugar at subsidized rates to Below Poverty Line (BPL) and Above Poverty Line (APL) families. Its primary objective is to ensure food security and protect vulnerable sections of society from price fluctuations. This is a static institutional fact about India's welfare system.

RRB Group D Economics Questions

RRB Group D Economics — Past Exam Questions

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