Industries, Infrastructure and Foreign Trade Set 2

Bachelor of Business Administration (BBA),

Bachelor of Arts (BA),

Bachelor of Arts in Economics (BA Economics),

Union Public Service Commission (UPSC)

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This set of Indian Economy Multiple Choice Questions & Answers (MCQs) focuses on Industries, Infrastructure and Foreign Trade Set 2

Q1 | The following is the list of four integrated steel plants in the country [CDS 1991] 1. Bhilai 2. TISCO 3. IISCO 4. Bokaro Which of the following combinations lists all the plants in the public sector ?
  • 1, 2 and 4
  • 1, 3 and 4
  • 2, 3 and 4
  • None of these
Answer: 1, 3 and 4
Q2 | Which of the following statements regarding the iron and steel plants at Bhilai,Rourkela and Durgapur are correct? [CDS 1992] 1. These plants were established in public sector during the Second Five Year Plan 2. These are located in the steel raw material belt 3. These were established with the help from Britain, Soviet Union and West Germany respectively
  • 1 and 2
  • 2 and 3
  • 1 and 3
  • 2 and 3
Answer: 1 and 2
Q3 | Consider the following statements: [CDS 2002] 1. The Ministry of External Affairs is in-charge of monetary policy in India. 2. The. Ministry of External Affairs is in-charge of foreign exchange rate determination in India. 3. The Ministry of Commerce puts forward the Export-Import Policy in India. 4. The Planning Commission prepares the Annual Budget of the Government Which of the statements is/are correct ?
  • 1, 2, and 3
  • 2 only
  • 3 only
  • 2 and 4
Answer: 3 only
Q4 | Which of the following are the public sector undertakings of the Government of India? 1. Balmer Lawrie and Company Ltd. 2. Dredging Corporation of India 3. Educational Consultants of India Ltd. Select the correct answer using the code given below [IAS 2008]
  • 1 and 2 only
  • 2 and 3 only
  • 1 and 3 only
  • 1, 2 and 3
Answer: 1, 2 and 3
Q5 | Which one of the following statements is not correct? [IAS 2005]
  • Rourkela Steel Plant, the first integrated steel plant in the Public Sector of India was set up with the Soviet Union collaboration.
  • Salem Steel Plant is a premier producer of stainless steel in India.
  • Maharashtra Elektrosmelt Ltd. is a subsidiary of the Steel Authority of India Ltd.
  • Visakhapatnam Steel Plant is a unit of the Rashtriya Ispat Nigam Ltd.
Answer: Rourkela Steel Plant, the first integrated steel plant in the Public Sector of India was set up with the Soviet Union collaboration.
Q6 | Which of the following pairs are correctly matched? [IAS 2005] Enterprise Industrial Group 1. VSNL : Bharati Group 2. Mundra Special Economic Zone Ltd. : Adani Group 3. CMC Ltd. : Tata Group 4. IPCL : Reliance Group Select the correct answer using the codes given below:
  • 1, 2 and 3
  • 3 and 4
  • 1, 2 and 4
  • 2, 3 and 4
Answer: 2, 3 and 4
Q7 | Which of the following authority sanctions foreign exchange for the import of goods?[UP PCS 2011]
  • Any Nationalised Bank
  • Exchange Bank
  • Reserve Bank of India
  • Ministry of Finance
Answer: Reserve Bank of India
Q8 | Which organisation promotes the foreign trade? [UP PCS 2011]
  • ECGC
  • MMTC
  • STC
  • All of these
Answer: All of these
Q9 | Import substitution implies [Asstt Commdt 2011]
  • importing new items in place of old items of import
  • gradual reduction of imported goods to save foreign exchange
  • increasing domestic supply of goods by imposing import restrictions
  • replacing import items by domestic production of such items
Answer: replacing import items by domestic production of such items
Q10 | Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)? 1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt. 2. The Government no longer intends to retain the management control of the CPSEs. Which of the statements given above is/are correct? [CSAT 2011]
  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2
Answer: Neither 1 nor 2
Q11 | Both Foreign Direct Investment (FOI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two? [CSAT 2011]
  • FII helps bring better management skills and technology, while FDI only brings in capital
  • FII helps in increasing capital availability in general, while FDI only targets specific sectors
  • FDI flows only into the secondary market, while FII targets primary market
  • FII is considered to be more stable than FDI
Answer: FII helps in increasing capital availability in general, while FDI only targets specific sectors
Q12 | Which one among the following statements is correct? [CDS 2012]
  • Due to border problems, India's trade with China did not register a quantum jump between the years 2001·2010
  • The stand-off between India and China on Pakistan and Arunachal Pradesh did not let India's trade to grow with China in the years 2001-2010 as much as it grew in the years 1991- 2001
  • While India-China trade has registered a quantum jump between the years 2001-2010, both the countries have ensured parity of trade
  • In spite of border problems, India's trade with China registered a quantum jump during the years 2001-2010
Answer: In spite of border problems, India's trade with China registered a quantum jump during the years 2001-2010
Q13 | Sickness of small units can be because of the factors: 1. under-utilisation of capacity 2. non-payment by the large firms 3. dependence on borrowed funds 4. lack of management expertise
  • 1, 2 and 3
  • 2, 3 and 4
  • 1, 2 and 4
  • 3 and 4
Answer: 1, 2 and 4
Q14 | Sunrise Industries" are Industries:
  • which are well-developed and have ample scope for further development
  • which improve export performance of the country
  • which are small-scale industries
  • which have high growth potential and meet further requirements of the economy
Answer: which have high growth potential and meet further requirements of the economy
Q15 | Arbitrage implies:
  • practice of taking advantage of rice difference in two markets
  • the practice of under invoicing exports
  • the practice of dumping viz., selling goods in a foreign market cheaper than the home market
  • the practice of over-invoicing imports
Answer: practice of taking advantage of rice difference in two markets
Q16 | Sector-wise, maximum employment in the public sector is in :
  • electricity, gas and water
  • community, social and personal services
  • finance, insurance and real estate
  • transport, storage and communication
Answer: community, social and personal services
Q17 | Over the last few years: 1. the value of imports has increased at a faster rate as compared to exports 2. exports have fallen as compared to imports 3. both exports and imports have risen 4. the balance of trade has been favourable to India
  • 1, 2 and 3
  • 1 and 3
  • 1
  • 1, 3 and 4
Answer: 1 and 3
Q18 | Which of the following are not features of India's small-scale industries in general? 1. large employment potential 2. great export potential 3. highly skilled labour 4. efficient marketing system
  • 1 and 3
  • 2 and4
  • 1 and 2
  • 3 and 4
Answer: 3 and 4
Q19 | Which one among the following is not true for Special Economic Zones? [CDS 2011]
  • No licence is required for import
  • Manufacturing and service activities are allowed
  • No permission for subcon- tracting
  • No routine examination of cargo for export/import by customs authorities
Answer: No permission for subcon- tracting
Q20 | The biggest Public Sector undertaking in the country is ____ [Corporation Bank PO 2011]
  • Iron & steel plants
  • Roadways
  • Railways
  • Airways
Answer: Railways
Q21 | With reference to India, which one of the following statements is NOT correct? [IAS 2003]
  • IPCL is India's largest petrochemical company
  • RIL is the largest private sector· company in India
  • MTNL is listed on NYSE
  • BSNL is the first telecom service organization in India to launch a nationwide cellular service at one time
Answer: IPCL is India's largest petrochemical company
Q22 | What is the current account of balance of payments?
  • It is the account showing difference of total exports and imports in one year
  • It is the account showing transactions in invisible account like tourism, shipping, insurance etc.
  • It is the account showing transactions like net external assistance, NRI deposits, etc.
  • It is the account showing trade balance plus invisible balance
Answer: It is the account showing trade balance plus invisible balance
Q23 | Core industries include:
  • basic industries
  • industries catering to defence requirements
  • critical industries
  • all the above
Answer: all the above
Q24 | The core sector includes:I. Coal II. Power III. Petroleum IV. Soaps and Detergent
  • I and II
  • I, II and III
  • I
  • II and III
Answer: I, II and III
Q25 | Invisible Export means export [Corporation Bank PO 2011]
  • Services
  • Prohibited goods
  • Unrecorded goods
  • Goods through smuggling
Answer: Services
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