Exercise 3

Question 1 :

How many banks were nationalized in 1969?

A). 16
B). 14
C). 15
D). 20
Answer : Option B

Question 2 :

In India, the first bank of limited liability manages by Indians and founded in 1881 was

A). Hindustan Commercial Bank
B). Oudh Commercial Bank
C). Punjab National Bank
D). Punjab and Sind Bank
Answer : Option B

Question 3 :

In India, inflation measured by the

A). Wholesale Price Index number
B). Consumers Price Index for urban non-manual workers
C). Consumers Price Index for agricultural workers
D). National Income Deflation
Answer : Option A

Explanation :

Two major measures for inflation, which are widely used, are Wholesale Price Index (WPI) and Consumer Price Index (CPI). WPI measures the increase in the prices of a fixed basket of goods prevailing in the wholesale market while CPI measures the increase in the prices of essential commodities purchased by an average consumer prevailing in the retail market. Measured weekly, WPI is the primary inflation measure in India.

Question 4 :

The annual yield from which of the following Union Government taxes is the highest?

A). Custom duties
B). Corporation tax and income tax
C). Inheritance tax, wealth tax, interest tax and gift tax
D). Excise duties
Answer : Option D

Question 5 :

The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of

A). 15 to 20 percent
B). 20 to 25 percent
C). 25 to 30 percent
D). 30 to 35 percent
Answer : Option B