Economy Questions asked in EPFO by Anuj Garg

Index
Economy Questions asked in EPFO 2
B Com Questions asked in EPFO 24

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 Economy Questions asked in EPFO

Question Answer

● As per the Economic Survey 2020-21, India’s real

1. According to the Economic Survey 2020- 21,
GDP to record a growth of 11% in 2021-22 and
which one of the following will be India’s real
nominal GDP by 15.4%
GDP growth in the year 2021- 22?

● The NITI (National Institution for Transforming

2. Which one of the following is the acronym for
India) Aayog is a ‘Policy Commission’ which
the word `NITI’ in NITI Aayog?
serves as the apex public policy think tank of the
(a) National Integration and Transformation of
Government of India. NITI Aayog was formed via
India
a resolution of the Union Cabinet on January 1,
(b) National Institution for Transforming India
2015.
(c) National Institution for Technological India
(d) National Institution for Trust in India

● Central Railway Zone: The Central Railway (CR)

3. Which one of the following pairs Of Zonal
was first established on 5th November 1951. Its
Railways and their Headquarters is not
headquarters is located at Chhatrapati Shivaji
correctly matched?
Terminus, Mumbai.
(a) Central — Nagpur
(b) Eastern — Kolkata
(c) Western — Mumbai
(d) Northern — New Delhi

● Option (b) is correct: The Kaladan multimodal

4. The Kaladan Multi-Modal Transit Transport
project is a joint project between India and
Project will connect India with which one of the
Myanmar. It has made its way back in the news as
following countries?
the project is about to be nearly completed at the

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 (a) Nepal Mizoram end. The Kaladan Multimodal project
(b) Myanmar connects Kolkata port with Myanmar’s Sittwe Port
(c) Bhutan by sea, Sittwe to Paletwa via river Kaladan,
(d) Afghanistan Paletwa to the border of India, and Myanmar via
road and further ahead to Lawngtlai, Mizoram by
road.

● Gross profit is the profit a company makes after

5. Which one of the following denotes Gross
deducting the costs associated with making and
Profit?
selling its products, or the costs associated with
(a) Cost of goods sold + Opening stock
providing its services.
(b) Sales less Cost of goods sold
● Gross profit will appear on a company’s income
(c) Sales less Purchases
statement and can be calculated by subtracting the
(d) Net profit less Expenses of the period
cost of goods sold (COGS) from revenue (sales).

● HDI considers three indicators of human

6. Which one of the following is NOT included in
development
the development of human development index?
○ life expectancy
(a) Per capita index
○ education
(b) Employment growth rate
○ per capita income.
(c) Literacy rate
○ Employment growth rate is not included in
(d) Life expectancy
the HDI.

● Monopolistic competition is a type of imperfect

7. Which one of the following is not a feature of
competition such that there are many producers
monopolistic competition?
competing against each other but selling
(a) Large number of buyers and sellers in the
products that are differentiated from one
market
another and hence are not perfect substitutes
(b) Differentiated products constitute the market
● In monopolistic competition, product in the market
(c) Product in the market is homogeneous
is heterogeneous and not homogeneous.
(d) Selling costs are used for sale promotion

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 ● Social cost is higher than the economic cost due
8. Social cost is higher than economic cost because
to the cost borne by bystanders being positive.
(a) society is bigger than economy
● The social cost is the total cost to society. It
(b) society includes polity, while economy does
includes private costs plus any external costs.
not include it
● The economic cost is the combination of losses of
(c) cost borne by bystanders is positive
any goods that have a value attached to them by
(d) society includes both consumers and
any one individual.
producers

● Core inflation is different from headline inflation

9. Core inflation is different from headline
because core inflation ignores articles of volatile
inflation because the former:
nature in the price index.
(a) ignores articles of volatile nature in the
● Headline inflation refers to the change in the
price index
value of all goods in the basket.
(b) considers articles of volatile nature in the price
● Core inflation excludes food and fuel items from
index
headline inflation.
(c) is not based on commodity price index
(d) considers only core items of consumption in
the price index

● The book ‘Choice of techniques’ is written by

10. Who among the following is the author of the
Amartya Kumar Sen.
book, Choice of Techniques?
● The book deals with the aspect related to the theory
(a) A. K. Sen
of planned economic development.
(b) K. N. Raj
(c) V. K. R. V. Rao
(d) Sukhamoy Chakravarty

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 ● Professor B. N. Goldar was the Chairman of the
11. Who among the following was the Chairman of
Working Group set up by the Government of India
the Working Group for determining the
in August 2014 to suggest the methodology for
methodology for construction of Producer Price
introducing the Producer Price Index (PPI) in India.
Index (PPI) in India (2014)?
(a) Saumitra Chaudhury
(b) D. V. Subbarao
(c) Abhijit Sen
(d) B. N. Goldar

● The Income and Expenditure Account is a

12. Income and Expenditure Account is
Nominal Account.
(a) Real Account
● The Nominal Accounts are used to record
(b) Personal Account
revenues, expenses, gains, and losses over a
(c) Nominal Account
specific period, such as a fiscal year.
(d) Capital Account
● The Income and Expenditure Account is
prepared by non-profit organizations to calculate
the surplus or deficit of income over expenditure
during a specific period.
● A special economic zone (SEZ) is an area in a
13. Special Economic Zones (SEZ) are developed to
country that is subject to different economic
(a) Generate additional economic activity
regulations than other regions within the same
throughout the country
country. The economic regulations of special
(b) Beautify suburban areas
economic zones (SEZs) tend to be conducive
(c) Upgrade the facilities in the countryside
to—and attract—foreign direct investment (FDI).
(d) Promote investment from domestic and
foreign sources

● Unbalanced growth is hypothesised when the

14. Unbalanced growth’ is hypothesized when
supply of labour is fixed.

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 (a) Expansion can take place simultaneously on ● Balanced growth aims at the development of all
several growth routes sectors simultaneously, but unbalanced growth
(b) Supply of labour is fixed recommends that the investment should be made
(c) Supply of capital is unlimited only in leading sectors of the economy.
(d) Active sectors need to, and do energize
sluggish sectors.

● The Green Revolution in India was expeditiously

15. Green Revolution in India was expeditiously
feasible in zones of assured irrigation.
feasible in zones of
● Assured irrigation for Increasing Cropping
(a) High rainfall
Intensity in India.
(b) Moderate rainfall
(c) Assured irrigation
(d) Higher population density

● The elasticity of demand is the responsiveness of

16. Transportation plays a great role in any
a quantity demanded to a price/income/price of
economy. Which of the following modes of the
another good change.
transportation has the highest elasticity?
● The concept of elasticity is very useful to
(a) Air
understand the economic behaviour of transport
(b) Rail
supply and demand. This concept is hugely used for
(c) Road
business purposes, and it plays a very important
(d) Water
role in determining the demand for transport.
● Transport is the movement of people and goods
for personal and business reasons.
● Road as a mode of transportation has the highest
elasticity compared to air, rail and water.

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 ● Monetary Policy is the macroeconomic policy
17. How does an expansionary monetary policy
laid down by the central bank. It involves the
affect the rate of interest and level of income?
management of money supply and interest rate
(a) Raises the level of income but lowers the
and is the demand side economic policy used by the
rate of interest
government of a country to achieve
(b) Raises the rate of interest but lowers the level
macroeconomic objectives like inflation,
of income
consumption, growth and liquidity.
(c) Raises both, rate of interest and the level of
● Expansionary monetary policy affects the rate of
income
interest and level of income. Expansionary
(d) Lowers both, the rate of interest and the level
monetary policy is when a central bank uses its
of income
tools to stimulate the economy.

● In calculation, GNP adds government expenditure,

18. Consider the following items:
personal consumption expenditure, private
1. Consumer goods and services
domestic investments, net exports, and income
2. Gross private domestic investment
earned by nationals overseas, and eliminates the
3. Goods and services produced by the
income of foreign residents within the domestic
government
economy.
4. Net income from abroad
Which of the above items are included in GNP?
(a) 1, 2 and 3 only
(b) 1, 2 and 4 only
(c) 3 and 4 only
(d) 1, 2, 3 and 4

● Distribution theory, in economics, is the

19. Which of the following statements best
systematic attempt to account for the sharing of the
describes the content of theory of distribution?
national income among the owners of the factors of
(a) The distribution of income among different
production—land, labour, and capital.
individuals in the economy
● Traditionally, economists have studied how the
(b) The distribution of income between the centre
costs of these factors and the size of their
and the state governments
return—rent, wages, and profits—are fixed.
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 (c) The principle of just distribution of wealth and
income
(d) The distribution of income between the
owners of factor resources

20. The demand for a factor production is said to

be derived demand because ● The demand for a factor of production is said to
1. It is a function of the profitability of an be a derived demand because it arises not from the
enterprise intrinsic utility provided by the factor but because
2. It depends on the supply of complementary of the value placed on the products it produces by
factors consumers.
3. It stems from the demand for the final product ● For example, when a businessman requires
4. It arises out of means being scarce in relation labour for manufacturing a product then his
to wants actual target is the final product.
Which of the above reasons is/are correct? ● Hence c is the correct answer.
(a) 1 only
(b) 3 only
(c) 2 and 4 only
(d) 1, 2, 3, and 4

21. Whenever countries set up a free trade area

they abolish all restrictions on trade among ● A free trade agreement is a pact between two or
themselves and more nations to reduce barriers to imports and
(a) They establish a common external tariff on exports among them.
imports from outside countries ● Under a free trade policy, goods and services can
(b) They abolish all restrictions on imports from be bought and sold across international borders
outside countries with little or no government tariffs, quotas,
(c) They abolish all restrictions on imports from subsidies, or prohibitions to inhibit their
other free trade areas exchange.

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 (d) Each country maintains on quotas on
imports from outside countries

22. Which of the following are the functions of

foreign investment promotion board (FIPB)? FIPB’s Functions:
1. To ensure expeditious clearance of the ● Quickly approve FDI proposals.
proposals for foreign investment ● Review FDI policies and help set up transparent
2. To review periodically the implementation of guidelines that encourage FDI into different
the proposals cleared by the board sectors.
3. To undertake all other activities for promoting ● To examine the implementation of the various
and other facilitating FDI as considered proposals that it had approved.
necessary from time to time ● To encourage FDI into the country by establishing
4. To interact with the FIPC being constituted contracts with international companies and
separately by the Ministry of Industry inviting them to make investments in India.
Select the correct answer using the codes given ● To communicate with the government and industry
below: to augment the inflow of FDI into the country.
(a) 1, 2 and 3 only ● To identify other sectors that need FDI.
(b) 1, 2 and 4 only ● FIPB was abolished in 2017.
(c) 1, 2, 3 and 4
(d) 3 and 4 only

23. The term ‘dear Money’ refers to

(a) Low rate of interest on housing loans ● Dear money is money that is difficult to obtain (for
(b) Value of money at the recession stage example, through borrowing) due to abnormally
(c) High rate of interest high-interest rates. People like saving when
(d) Savings gained due to decrease in rate of interest rates are high and spending or borrowing
interest on housing loans when rates are low, which explains why.
● Or to put it another way, the cost of money rises.

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 ● The International Monetary Fund (IMF) was
24. Which of the following statements are correct
established along with the International Bank for
regarding the International Monetary Fund
Reconstruction and Development at the
(IMF)
Conference of 44 nations held at Bretton Woods,
1. India is a founder member of the IMF
New Hampshire, USA in July 1944. At present,
2. India’s quota in the IMF is more than 4
187 nations are members of the IMF. India is a
percent.
founder member of the IMF.
3. The Finance Minister is represented ex-officio
● Finance Minister is the ex-officio Governor on the
on the IMF.
Board of Governors of the IMF and the Governor,
4. IMF conducts regular review of India’s
of RBI is India`s Alternate Governor.
economic status under Article IV.
● As part of its mandate for international surveillance
Select the correct answer using the codes given
under the Articles of Agreement, the IMF conducts
below:
what is known as Article-IV consultations to
(a) 1, 2 and 3 only
review the economic status of member countries.
(b) 1, 3, and 4 only
(c) 2 and 4 only
(d) 1, 2, 3 and 4

25. Which of the following trends in FDI inflows

are correct? ● In 2003-04 FDI inflows showed a negative growth
1. In 2003-04, the FDI equity inflow percentage rate of 7.2 percent.
growth was negative. ● From 2004-05 to 2007-08, the FDI inflows were
2. From 2004-05 to 2007-08, the FDI inflows very high and positive. In 2007-08, the total FDI
were very high and positive. inflow was US$ 62277 million.
3. In 2008-09, the FDI inflows were positive, but ● In 2008-09, the FDI inflows were positive but had
had decreased relative to the previous year. decreased relative to the previous year. In 2008-09,
Select the correct answer using the codes given the total FDI inflow was US $ 27841 Million.
below:
(a) 1 and 3 only
(b) 1, 2 and 3
(c) 2 and 3 only

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 (d) 1 and 2 only

26.
Statement (I): The effects of an income tax on ● Statement (I) is false but Statement (II) is true
consumption, saving and investment are micro ● The effects of an income tax on consumption,
effects. saving and investment are macro effects.
Statement (II): Income tax is an example of direct Reductions in income tax rates affect, the behaviour
tax. of individuals and businesses.
● Income tax is the direct tax. An income tax is a
tax that governments impose on income generated
by businesses and individuals within their
jurisdiction.

27. Statement (I): Trade between two countries takes

place on account of difference in costs. ● Both Statement (I) and Statement (II) are
Statement (II): Different countries have different individually true and Statement (II) is the
factor endowments correct explanation of Statement (I)
● Trade is a basic economic concept involving the
buying and selling of goods and services with
compensation paid by a buyer to a seller or the
exchange of goods for services between parties.
● Trade between two countries takes place in the
account of differences is casts.
● Different countries have different factor
endowments.

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28. Directions: one labelled as the ‘Statement (I) ‘
and the other as ‘Statement (II) ‘. ● Both Statement (I) and Statement (II) are
Examine these two statements carefully and individually true and Statement (II) is the
select the answers to these items using the codes correct explanation of Statement (I)
given below: ● Foreign Investment may affect a country’s export
Statement (I): Foreign investment may effect a performance.
country’s export performance. ● The inflow of foreign exchange cause appreciation
Statement (II): Inflow of foreign exchange may of local currency leading to a rise in the price of
cause appreciation of local currency leading to a export commodities.
rise in the price of export commodities.

29. Which one of the following explanations is

indicated by the term ‘welfare’ as a total ● The term ‘welfare’ as a total concept can be
concept? understood as a desirable state of existence
(a) It is a desirable state of existence involving involving physical, mental, moral, and emotional
physical, mental, moral and emotional well-being.
well-being ● It is a comprehensive concept that can differ from
(b) It is the welfare of man, his family and society-to-society and country to country and can
community also change with changing times.
(c) It is contingent upon time and space ● Welfare includes anything that is done for the
(d) It demands certain minimum acceptable comfort and improvement of individuals and is
conditions of existence, biologically and provided over and above wages.
socially

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30. Which one of the following is not an objective
under Pradhan Mantri Krishi Sinchayee ● Providing subsidies to use fertilizer,
Yojana (PMKSY)? high-yielding varieties (HYV) and pesticides

● Option (b) is correct: The Government has

31. Which one of the following is the name of the
introduced a well-targeted system of subsidy
scheme introduced as a well-targeted system of
delivery to LPG consumers through PAHAL.
service delivery to LPG customers?
● This initiative of the Government was aimed at
(a) SAHAJ
rationalizing subsidies based on an approach to cut
(b) PAHAL
subsidy leakages, but not subsidy per se.
(c) UDAY
(d) UDAN

32. Dr Ngozi Okonjo-Iweala was recently selected

as the first woman Director-General of WTO. ● Ngozi Okonjo-Iweala is a Nigerian-American
She hails from which one of the following economist, who has been serving as
countries? Director-General of the World Trade Organization
(a) Japan since March 2021.
(b) Ethiopia ● Notably, she is the first woman and first African
(c) Nigeria to lead the World Trade Organization as
(d) Egypt Director-General.

33. Under Sukanya Samriddhi Yojana, what is the

maximum amount that can be deposited during ● A Sukanya Samriddhi Account can be opened
a financial year? any time after the birth of a girl child till she turns
(a) 1.5 Lakh 10, where you will have to deposit a minimum of

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 (b) 1 Lakh Rs 250 and a maximum of Rs 1.5 lakh can be
(c) 2 Lakh deposited during the ongoing financial year.
(d) 2.5 Lakh

34. What are the minimum and maximum age at

which a subscriber can join the Atal Pension ● To avail benefits from the Atal Pension Yojana,
Yojana? you must fulfil the below requirements:
(a) 21 years and 58 years respectively ● Must be a citizen of India. Must be between the
(b) 18 years and 40 years respectively age of 18-40. Should make contributions for a
(c) 18 years and 50 years respectively minimum of 20 years.
(d) 21 years and 60 years respectively

35. Which one of the following bodies has 35. Answer: (d)
formulated the ‘National Student Startup ● All India Council for Technical Education
Policy’, launched by the President of India in (AICTE) formulated the National Student Startups
November 2016? Policy. The policy aims to create 100,000
(a) UGC technology-based student start-ups and a million
(b) NCERT employment opportunities within the next 10
(c) AIU years (2025).
(d) AICTE ● It emphasizes the much-desired need for an
appropriate start-up policy to propel the youth of
India through and beyond the 21st century.

36. Which one of the following schemes is aimed at

all-round development of adolescent girls in the ● Rajiv Gandhi Scheme for Empowerment of
age group of 11-18 years and making them Adolescent Girls (RGSEAG) Sabla was a scheme
self-reliant? under the Ministry of Women & Child
(a) RGSEAG Development.
(b) IGMSY ● SABLA aims at empowering Adolescent Girls
(c) NMEW (AGs) of 11 to 18 years by improving their

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 (d) RMK nutritional and health status, upgradation of
home skills, life skills and vocational skills.
● The girls would be equipped with information on
health and family welfare, hygiene and guidance on
existing public services.
● So, it is aimed at all-round development of
adolescent girls in the age group of 11-18 years
and making them self-reliant.

37. A StandUp enterprise can be established in

1. farming sector ● A StandUp enterprise can be established in all
2. manufacturing sector three sectors - manufacturing sector, service
3. service sector sector and trading sector. The StandUp enterprise
4. trading sector cannot be established in the farming sector.
Select the correct answer using the code given ● The Standup India scheme aims at promoting
below. entrepreneurship among women and scheduled
(a) 1, 2 and 4 castes and tribes.
(b) 1, 3 and 4 ● The scheme is anchored by the Department of
(c) 1, 2 and 3 Financial Services (DFS), Ministry of Finance,
(d) 2, 3 and 4 Government of India.
● Stand-Up India Scheme facilitates bank loans
between Rs 10 lakh and Rs 1 Crore to at least one
Scheduled Caste (SC) or Scheduled Tribe (ST)
borrower and at least one woman borrower per
bank branch for setting up a greenfield enterprise.
● The then Ministry of Human Resource
38. Startup Hubs are agreed to be set up in:
Development (now the Ministry of Education)
1. IIITs
and the Department of Science and Technology
2. IISERs
have agreed to partner in an initiative to set up
3. NITs
startup support hubs in the Indian Institutes of
4. Central Universities
Information Technology (IIITs), the Indian
Select the correct answer using the code given
Institutes of Science Education and Research
below.
(IISERs), the National Institutes of Technology
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 (a) 1, 2 and 3 (NITs), and National Institutes of Pharmaceutical
(b) 1 and 4 only Education and Research (NIPERs).
(c) 3 and 4 only
(d) 1, 3 and 4

39. StandUp India Programme envisages each

bank branch to give loan between ₹10 lakh to ● The StandUp India scheme facilitates bank loans
₹100 lakh: between ₹10 lakh and ₹100 lakhs to at least one
1. to at least one SC/ST borrower Scheduled Caste (SC) or Scheduled Tribe (ST)
2. to at least one woman borrower borrower and at least one woman borrower per
3. to at least one rural unemployed youth bank branch for setting up a greenfield enterprise.
borrower ● This enterprise may be in manufacturing, services
Select the correct answer using the code given or the trading sector.
below:
(a) 1 only
(b) 2 and 3
(c) 1 and 3
(d) 1 and 2

● As of 2016, the Atal Pension Yojana (APY) is

40. Which one of the following statements is not
focussed on all citizens in the unorganized sector.
correct for Atal Pension Yojana?
The scheme is administered by the Pension Fund
(a) There is guaranteed minimum monthly
Regulatory and Development Authority (PFRDA)
pension for the subscribers ranging between ₹
through NPS architecture.
1,000 and ₹ 5,000 per month.
● APY is applicable to all citizens of India aged
(b) The benefit of minimum pension would be
between 18-40 years. Under the APY, there is a
guaranteed by the Government of India.
guaranteed minimum monthly pension for the
(c) Government of India co-contributes 50% of
subscribers ranging between Rs. 1000 and Rs.
the subscriber’s contribution or ₹1,000 per
5000 per month.
annum, whichever is lower.
● The benefit of a minimum pension would be
(d) It is applicable to all citizens of India aged
guaranteed by the Government of India. The
above 40 years.
Government of India will also co-contribute 50%

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 of the subscriber’s contribution or Rs. 1000 per
annum, whichever is lower.
● As of 2016, for Rs. 2 lakh risk coverage for
41. Which one of the following is the amount of
accidental death and full disability and Rs. 1 lakh
annual premium of the Pradhan Mantri
for partial disability under the Pradhan Mantri
Suraksha Bima Yojana (PMSBY) for
Suraksha Bima Yojana (PMSBY), the premium
accident and disability cover up to `2,00,000?
amount is Rs. 12 per annum.
(a) ₹ 100
● The Scheme is available to people in the age group
(b) ₹ 50
18 to 70 years with a bank account who give their
(c) ₹ 20
consent to join product on similar terms with
(d) ₹ 12
necessary approvals and tie up with banks for this
purpose.

42. What is Know India Programme (KIP) ?

(a) A programme for children aged 12-15 years ● Know India Programme is a flagship programme
from rural areas to make them aware of of the Ministry of External Affairs for engagement
different aspects of India with Indian origin youth (between 18-30 years) to
(b) A programme that facilitates visits of rural enhance their awareness of India, its cultural
teachers to different parts of the country heritage, art and to familiarise them with various
(c) An out-reach programme of the Ministry of aspects of contemporary India
External Affairs to build closer ties with
India’s neighbourhood
(d) A programme for diaspora youth to
promote awareness among them about
different aspects of India.

● The Eight Millennium Development Goals are:

43. Which of the following is one of the Millennium
1. to eradicate extreme poverty and hunger
Development Goals fixed by the UNO?
2. to achieve universal primary education
(a) Halving extreme poverty and halting the
3. to promote gender equality and empower
spread of HIV/AIDS
women
4. to reduce child mortality

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 (b) Develop a new variety of food grains which 5. to improve maternal health
can ensure bumper crops 6. to combat HIV/AIDS, malaria, and other
(c) To ensure that the population doesn’t increase diseases
in the least developed countries. 7. to ensure environmental sustainability
(d) Develop procedures towards adequate and 8. to develop a global partnership for
timely forewarning on hurricanes and development.
tsunamis.

44. When the government ownership in Public

Sector Undertakings is diluted, it is called ● Disinvestment in India meaning: Disinvestment
(a) Privatisation means the sale or liquidation of assets by the
(b) Public Private Partnership government, usually Central and state public
(c) Disinvestment sector enterprises, projects, or other fixed assets.
(d) Deflation ● The government undertakes disinvestment to
reduce the fiscal burden on the exchequer, or to
raise money for meeting specific needs, such as to
bridge the revenue shortfall from other regular
sources.

45. The Rangarajan committee on disinvestment of

shares in Public sector enterprises suggested ● The Rangarajan Committee proposed
that disinvesting up to 49% of PSE ownership in
1. The percentage of equity to be divested should sectors specifically designated for the public sector
be more than 49% for industries explicitly and over 74% in other sectors in April 1993.
reserved for the public sector and it should be However, the Committee’s recommendations were
either 74% or 100% for others. unacted upon by the then-Government.
2. Year-wise targets of disinvestment should be
maintained.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

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46. Consider the following programmes:
● Following all are related to Micro, Small and
1. Credit Linked Capital Subsidy Scheme
Medium Enterprises:
2. Micro Finance Programme
○ Credit Linked Capital Subsidy Scheme
3. National Manufacturing Competitiveness
○ Micro Finance Programme
Programme
○ National Manufacturing Competitiveness
4. Cluster Development Programme
Programme
What is common in the above programmes?
○ Cluster Development Programme
(a) They are related to improving agriculture
(b) They are programmes related to Micro,
Small and Medium Enterprises
(c) They are programmes to improve large scale
industries
(d) They are programmes to improve the
traditional cottage industries

47. Consider the following statements in respect of

Atal Pension Yojana: ● Atal Pension Yojana, formerly known as
1. Beneficiary must be in the age group of 18 to Swavalamban Yojana is a government-backed
40 years. pension scheme in India, primarily targeted at the
2. Beneficiary will receive the pension only after unorganised sector.
he attains the age of 60 years. ● APY is a regular contribution-based pension plan
3. After the death of a beneficiary, his spouse which promises a guaranteed pension of INR
continues to receive the pension. 1,000/2,000/3,000/4,000 or INR 5,000. The
4. No nominee of the beneficiary is permitted. monthly contribution will depend on the choice of
Which of the above statements are correct? pension you want and the age when you enrol in
(a) 3 and 4 only the pension scheme. The pension will only start at
(b) 1, 3 and 4 only the age of 60 years.
(c) 1, 2 and 3 only
(d) 1, 2, 3 and 4

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48. Consider the following statements regarding
the Pradhan Mantri Suraksha Bima Yojana: ● Pradhan Mantri Suraksha Bima Yojana -
1. It is application for all bank account holders Accident Insurance. The Pradhan Mantri Suraksha
up to the age of 60 years. Bima Yojana is a government-backed accident
2. It is life insurance cover. insurance scheme that covers accidental death,
3. It is an accident insurance cover. permanent disability, and partial disability.
4. The insurance covers death and permanent ● Individuals between 18 years and 70 years are
disability due to accident. eligible to apply for this scheme.
Which of the above statements are correct?
(a) 1 and 2 only
(b) 3 and 4 only
(c) 2 and 3 only
(d) 1 and 4 only
The Government approved National Telecom Policy,
49. Which of the following are incorporated in the
2012 incorporated the following:
Government approved National Telecom Policy,
○ Broadband for all with a minimum
2012?
download speed of two megabits per
1. Broadband for all with a minimum download
second
speed of two megabits per second
○ India’s rural tele-density to be improved
2. India’s rural tele- density to be improved from
from 39% to 70% in the next five years
39% to 70% in the next five years
○ Roaming charges shall be scrapped
3. Roaming charges shall be scrapped

50. Consider the following statements about All

India Radio: ● On June 8th, 1936, the Indian State Broadcasting
1. It is governed by the Prasar Bharati Board. Service underwent a name change to “All India
2. It was so named in 1936. Radio.
3. It does not provide DTH services. ● The national public radio broadcasting service of
4. FM Rainbow and FM Gold are its subsidiary India is called All India Radio (AIR), a part of
channels. Prasar Bharati.
Which of the above statements are correct?

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 (a) 1, 2 and 3 only ● The second-largest radio network in the world, it has
(b) 3 and 4 only been formally known as Akashvani since 1956.
(c) 1, 2 and 4 only According to the Information and Broadcasting
(d) 1, 2, 3 and 4 Ministry, AIR has reached more than 99% of the
nation’s citizens. It is a subsidiary of Prasar
Bharati and has its headquarters in New Delhi.
● The FM network of AIR includes a number of
regional FM stations as well as 25 FM Gold and FM
Rainbow channels.
● Office of Registrar General and Census
51. Recently the Government of India had
Commissioner, India under the Ministry of Home
conducted the Socio-Economic and Caste
Affairs, Government of India is responsible for
Census (SECC) all over the country. Which of
carrying out the census. It provides information on
the following agency / agencies had rendered
size, distribution and socio-economic,
complete logistics and technical support to this
demographic and other characteristics of the
exercise?
country’s population.
(a) Office of the Registrar General and Census
● Socio-Economic and Caste Census (SECC) 2011
Commissioner, India
was conducted by the Ministry of Rural
(b) Ministry of Rural Development
Development (MoRD) and the then Ministry of
(c) Ministry of Housing and Urban Affairs
Housing and Urban Poverty Alleviation (HUPA)
(d) Ministry of Rural Development & Ministry of
in rural and urban areas respectively. The SECC
Housing and Urban Affairs
2011 data excluding the caste data have been
finalised and published by MoRD and HUPA.

52. Which of the following are the roles of the

finance commission in India? ● According to Article 280 of the Constitution, the
1. The distribution of money collected through President appoints the Finance Commission,
taxes which has as its major responsibility making
2. Evaluation of centrally sponsored schemes suggestions on how tax income should be divided
3. Evolve principles based on which funds are between the Union and the States as well as
allocated among states among the States themselves.
4. To develop five year plans ● The vertical inequalities between the taxing and
spending authority of the federal government and
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 Select the correct answer using the codes given the states, as well as the equalisation of all public
below: services across the states, are two unique aspects of
(a) 1 and 4 only the Commission’s work.
(b) 1 and 3 only
(c) 2 and 4 only
(d) 2 and 3 only

53. Which one of the following countries is not a

member of WTO? ● Iran is not a member of the World Trade
(a) Japan Organisation. The World Trade Organization
(b) China (WTO) deals with the global rules of trade
(c) Iran between nations.
(d) Russia ● Eight of the most important trading nations who
aren’t currently WTO members are:
○ Iran
○ Algeria
○ Sudan
○ Belarus
○ Serbia
○ Turkmenistan
○ Azerbaijan
○ Bosnia and Herzegovina

54. ‘Know India Programme’ is a flagship initiative ● Know India Programme is a flagship programme
of which one of the following Ministries? of the Ministry of External Affairs for
(a) Ministry of Youth Affairs and Sports engagement with Indian origin youth (between
(b) Ministry of External Affairs 18-30 years) to enhance their awareness about
(c) Ministry of Culture India, its cultural heritage, art and to familiarise
(d) Ministry of Tourism them with various aspects of contemporary India.
● This programme is open to youth of Indian origin
(excluding non-resident IndiAnswer: from all over
the world with preference to those from Mauritius,

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 Fiji, Suriname, Guyana, Trinidad & Tobago, South
Africa and Jamaica.

55. In which one of the following places, was Asia’s

first Export Processing Zone (EPZ) set up in ● India was one of the first in Asia to recognize the
1965? effectiveness of the Export Processing Zone
(a) Ahmedabad (EPZ) model in promoting exports, with Asia’s first
(b) Kandla EPZ set up in Kandla in 1965.
(c) Mumbai ● With a view to attracting larger foreign investments
(d) Jaipur in India, the Special Economic Zones (SEZs)
Policy was announced in April 2000.
● The proposed bridge between Dhubri and
56. Which one of the following States will be
Phulbari over the river Brahmaputra will be
directly connected with Assam by the proposed
located on NH-127B, originating from Srirampur
bridge between Dhubri and Phulbari over the
on NH-27 (East-West Corridor), and terminating at
river Brahmaputra?
Nongstoin on NH-106 in the State of Meghalaya.
(a) Arunachal Pradesh
● It will connect Dhubri in Assam to South Salmara,
(b) Meghalaya
Mankachar, Phulbari, Tura, Rongram and Rongjeng
(c) West Bengal
in Meghalaya.
(d) Mizoram

B Com Questions asked in EPFO

Question Answer

1. Which one of the following statements about

trial balance is correct? ● Trial balance is a worksheet representing the report
(a) It is a book containing different accounts of that has a balance of all general ledger accounts of
an entity. any firm for a given period.
(b) It is a statement containing balances of ● This balance sheet is usually prepared at the end of
debtors of an entity. the month. The trial sheet ensures that the entries of
any given company are mathematically correct.

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 (c) It is a statement containing balances of ● Moreover, it also identifies the accurate balance of
debtors and creditors of an entity. both debit and credit entries based on the general
(d) It is a statement containing the various ledger transactions.
ledger balance of an entity on a particular
date.
● Capital expenditure is incurred in purchase new
2. Wages paid for installation of machinery is
property which will help the production of goods or
debited to which one of following accounts ?
which will increase the earning capacity of the
(a) Wages account
business or acquiring a valuable right or increasing
(b) Machinery account
the life of an asset.
(c) Installation account
● Expenses paid for buying a new machinery, interest
(d) Profit and loss account
paid during the construction of works, legal
charges incurred in purchasing a building, etc.,
should be considered as expenses of capital nature
and should be debited to the particular asset account.
● Therefore, wages paid on installation of machinery is
debited to Machinery Account.

3. When are current liabilities payable ?

(a) Within a year ● Current liabilities are a company’s short-term
(b) After one year but within five years financial obligations that are due within one year or
(c) Within five years within a normal operating cycle.
(d) Subject to a contingency ● An operating cycle, also referred to as the cash
conversion cycle, is the time it takes a company to
purchase inventory and convert it to cash from sales.
An example of a current liability is money owed to
suppliers in the form of accounts payable.

4. Is the total of Debit and Credit side of trial

balance the same? ● A trial balance is a statement showing the balances,
(a) No, there are some times good reason why or total of debits and credits, of all the accounts in the
they differ.

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 (b) Yes, always . ledger with a view to verify the arithmetical accuracy
(c) Yes, except where the trial balance is of posting into the ledger accounts.
extracted at the year end. ● When the totals of all the debit balances and credit
(d) No. because it is not a balance sheet. balances in the trial balance are equal, it is
assumed that the posting and balancing of accounts is
arithmetically correct. However, the tallying of the
trial balance is not a conclusive proof of the accuracy
of the accounts.
● It only ensures that all debits and the corresponding
credits have been properly recorded in the ledger.
When a trial balance does not tally (that is, the totals
of debit and credit columns are not equal), we know
that at least one error has occurred.
● The error (or errors) may have occurred at one of
those stages in the accounting process.

5. Which one of the following is the first book in

which the transaction of a business unit are ● A journal is the first book in which transactions are
recorded ? recorded before they get transferred into accounts in
(a) Balance sheet the ledger.
(b) cash book ● A journal contains daily details of business
(c) ledger transactions, this means that all transactions for a day
(d) journal are recorded in the journal

6. Which one of the following accounting ● The concept of money measurement states that only
concepts is applied by an entity, when events those transactions and happenings in an organisation,
such as new competitor entering in the which can be expressed in terms of money are to be
market and rift between recorded in the book of accounts.
Production and marketing departments are not ● Also, the records of the transactions are to be kept not
disclosed in the books of accounts ? in the physical units but in the monetary units.
(a) Matching
(b) Money measurement
(c) Revenue recognition

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 (d) Cost

7. Which one of the following concerns prepares

receipts and payments accounts? ● Non-trading concerns usually maintain their
(a) Trading concerns accounts by the double entry system and periodically
(b) Non-trading concerns prepare their final accounts for the submission to their
(c) manufacturing concerns members and subscribers.
(d) Companies registered under companies act

8. Which one of the following statements is

correct about income and expenditure ● The income and expenditure account is prepared by
account ? non-trading concerns at the end of the accounting
(a) It is a real account period matching revenue receipts with revenue
(b) it is a personal account expenses to determine surplus or deficit.
(c) It is a nominal account. ● It is a nominal account that states that all the expenses
(d) it is a representative personal account . are debited, and all the incomes are credited.
● In the case of gold, the revenue is recognised in the
9. In case of gold, revenue is recognized in the
accounting period in which gold is mined and not in
accounting period in which the gold is:
the period in which it is sold.
(a) delivered
(b) sold
(c) mined
(d) identified to be mined
● As per the traditional approach based on the matching
10. As per the traditional approach, the expense
concept, the expense to be matched with revenue is
to be matched with revenue is based on
based on the original cost.
(a) original cost
(b) opportunity cost
● Original cost is the total price associated with the
(c) replacement cost
purchase of an asset. The original cost of an asset
(d) cash cost
takes into consideration all of the items that can be
attributed to its purchase and to putting the asset to
use.

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11. Preliminary expenses are the examples of: ● Preliminary expenses are those expenses which are
(a) capital expenditure incurred before the incorporation and commencement
(b) capital gain of the business.
(c) deferred revenue expenditure ● These expenses are examples of deferred revenue
(d) revenue expenditure/expense expenditure.
● The term depreciation refers to an accounting
12. Depreciation of fixed assets is an example of:
method used to allocate the cost of a tangible or
(a) deferred revenue expenditure
physical asset over its useful life. Depreciation
(b) capital expenditure
represents how much of an asset’s value has been
(c) capital gain
used.
(d) revenue expenditure/expense
● It allows companies to earn revenue from the assets
they own by paying for them over a certain period of
time.
● Depreciation of fixed assets is an example of
revenue expenditure/expense. Some examples of
depreciable fixed assets are buildings, machinery, and
office equipment.
● The term ‘IFRS’ stands for International Financial
13. In the context of accounting, the term IFRS
Reporting Standards.
stands for:
● The International Financial Reporting Standard set
(a) International Financial Reporting
common rules with the objective that financial
Standards
statements can be consistent, transparent and
(b) Indian Financial Reporting Standards
comparable throughout the globe.
(c) Indian Financial Reporting System
● IFRS are issued by the International Accounting
(d) International Financial Reporting System
Standards Board.

14. Legacies are generally

(a) Capitalized and taken to balance sheet ● Legacies are generally capitalized and taken to the
(b) Treated as income balance sheet.
(c) Treated as expenditure ● Legacies are assets and liabilities transferred as a
(d) Capitalized and taken to suspense account result of the operation of a will. This means legacies

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 being assets or liabilities is not in the nature of a
nominal account, they can either be in the nature of a
personal account or a real account.

15. The abnormal loss on consignment is credits

to ● The abnormal loss on consignment is credited to
(a) Profit and loss account the Consignment Account. When goods are sent on
(b) Consignee’s account consignment, the consignor maintains a Consignment
(c) Consignment account Account to record all transactions related to the
(d) Income and expenditure account consignment. The account is credited with the value
of goods sent on consignment and debited with all
expenses incurred in connection with the
consignment, such as freight, insurance, and
commission. Any abnormal loss on consignment is
also credited to the Consignment Account. Abnormal
loss on consignment occurs when there is a loss of
goods that is not normal in the course of business,
such as loss due to fire, theft, or damage in transit.
When such loss occurs, the value of the lost goods is
credited to the Consignment Account and debited to
the Abnormal Loss Account. This helps to adjust the
value of the consignment and to determine the actual
profit or loss on the consignment.

16. When goods are purchased for the joint

venture the amount is debited to ● When goods are purchased for the joint venture, the
(a) Purchase Account amount is debited to the Joint Venture Account. A
(b) Joint venture account Joint Venture Account is a nominal account used to
(c) Venture’s capital account record all transactions related to a joint venture.
(d) Profit and loss account When goods are purchased for the joint venture, the
amount is debited to the Joint Venture Account to
record the purchase of goods. The Joint Venture

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 Account is also credited with all revenue earned from
the joint venture, such as sales or services provided.
● The Purchase Account is a real account used to
record the purchase of goods for personal or business
use.
● The Venture’s Capital Account is a capital account
used to record the contributions made by the joint
venture partners to the joint venture.
● The Profit and Loss Account is used to record all
revenue and expenses incurred during the accounting
period. These accounts are not used to record
transactions related to joint ventures.

17. Consider the following information:

Rate of gross profit-25% on ● The amount of gross profit can be calculated as
Cost of goods sold follows:
Sales- 20,00,000 Let the cost of goods sold be x. Since the rate of gross
Which on e of the following is the amout of profit is 25% on the cost of goods sold, the gross
gross profit? profit would be 0.25x.
(a) 5,00,000 Since sales equal the cost of goods sold plus the gross
(b) 6,25,000 profit, we can write the equation: 20,00,000 = x +
(c) 3,75,000 0.25x.
(d) 4,00,000 Solving for x, we get x = 16,00,000. This means that
the cost of goods sold is 16,00,000 and the gross
profit is 0.25 * 16,00,000 = 4,00,000.

18. Branch Account under the debtors system is

(a) Real account ● Branch Account under the debtors system is a
(b) Personal Account Personal Account. Under the debtors system, the
(c) Nominal account Branch Account is maintained to record the
(d) Liability account transactions between the head office and the branch.
The Branch Account is a Personal Account because it

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 represents a relationship between the head office and
the branch, which are both legal entities.
● All transactions related to the branch, such as sales
made by the branch, expenses incurred by the branch,
and remittances sent by the branch to the head office,
are recorded in the Branch Account. The balance in
the Branch Account represents either a debt or a
credit balance, depending on whether the branch
owes money to the head office or the head office
owes money to the branch.

19. Under which Schedule of the Companies Act,

2013, the formats of financial statements are ● The process in which representatives of workmen and
prescribed? employers involved in an industrial dispute are
(a) Schedule I brought together before a third person or group of
(b) Schedule II persons who facilitated/facilitate through mediation
(c) Schedule III to reach a mutually satisfactory agreement is called
(d) Schedule IV Conciliation.
● Arbitration involves referring a dispute to an
independent third party for a decision that is usually
binding on both parties. Adjudication involves
resolving a dispute through a court or tribunal.
Collective negotiation involves discussions between
representatives of employees and employers to reach
an agreement on terms and conditions of
employment.

20. In the absence of any provision in the

partnership agreement, profits and losses are ● Question relating to the application or interpretation
shared by the partners: of a standing order certified under the industrial
(a) in the ratio of the capital of partners employment (standing orders) Act, 1946 may be
(b) equally referred to the Labour Court. The Labour Court is a
quasi-judicial body that is responsible for settling

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 (c) in the ratio of loans given by them to the disputes between employers and employees. It has the
partnership firm power to adjudicate on disputes related to industrial
(d) in the ratio of the initial capital introduced disputes, including disputes related to the
by the partners interpretation and application of standing orders. The
Industrial Tribunal and the Industrial Employment
Court are other quasi-judicial bodies that deal with
disputes related to employment and industrial
relations. The Labour Commissioner is an
administrative authority who is responsible for
enforcing labour laws and regulations.

21. The view that people can learn through

observation and direct experience is ● Social learning theory, proposed by Albert
associated with which one of the following Bandura, emphasizes the importance of observation
theories of learning? and direct experience in learning.
(a) Social learning ● According to this theory, people can learn new
(b) Operant conditioning behaviors by observing others and the consequences
(c) Reinforcement of their actions. This learning occurs through the
(d) Classical conditioning process of modeling, where individuals observe and
imitate the behavior of others.

22. Employees’ belief in the degree to which they

affect their work environment, their ● Psychological empowerment is a motivational
competence, the meaningfulness of their job concept that refers to the degree to which employees
and their perceived autonomy in their work feel a sense of control, competence, and
indicates: meaningfulness in their work.
(a) Organisational commitment ● Employees who feel psychologically empowered
(b) Psychological empowerment believe that they have the ability to influence their
(c) Affective commitment work environment, possess the necessary skills to
(d) Job satisfaction perform their job, find their work meaningful, and
have autonomy in their work.

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23. The tendency of individuals to attribute their
own success to internal factors and put the ● Self-serving bias is the tendency of individuals to
blame for failures on external factors take credit for their successes and attribute their
indicates: failures to external factors. This bias is driven by
(a) Fundamental attribution error the need for individuals to maintain a positive
(b) Self-serving bias self-image and protect their self-esteem.
(c) Selective perception ● When individuals succeed, they tend to attribute their
(d) Contrast effects success to their own abilities, effort, and talents.
However, when they fail, they tend to attribute their
failure to external factors such as bad luck, unfair
circumstances, or the actions of others.

24. Intuitive decision making means:

(a) a non-conscious process created out of ● Intuitive decision making refers to the process of
distilled experience. making decisions based on one’s instincts, gut
(b) making decisions by constructing simplified feelings, or hunches.
models without capturing complexity. ● It is a non-conscious process that is created out of
(c) behaving in such a way so as to maximize distilled experience.
output.
(d) developing alternatives consciously.

25. A group, whose efforts result in performance

that is greater than the sum of the individual ● A team can be described as a group whose individual
inputs, is called: efforts result in performance is greater than the sum
(a) Work Group. of the individual inputs. A team creates positive
(b) Work Team. synergy through coordinated effort.
(c) Virtual Team.
(d) Self-managed Group.

26. The concept that a subordinate should have

only one superior to whom he or she is ● The concept that a subordinate should have only one
directly responsible is known as: superior to whom he or she is directly responsible is

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 (a) Span of control. known as Unity of command. Unity of command is
(b) Unity of command. critical in military operations to prevent conflicting
(c) Chain of command. orders and ensures quick decision-making to avoid
(d) Authority control. danger to troops in rapidly changing situations.

27. Which one of the following appraisal methods

combines the benefits of narratives, critical ● The appraisal method that combines the benefits of
incidents and quantified scales by assigning narratives, critical incidents, and quantified scales by
scale points with specific examples of good or assigning scale points with specific examples of good
poor performance? or poor performance is called the Behaviourally
(a) Forced distribution Anchored Rating Scale (BARS).
(b) Alternation ranking ● It is a method that aims to provide a more objective
(c) Behaviourally anchored rating scale evaluation of an employee’s performance by using
(d) Graphic rating scale specific behavioral examples to rate the employee’s
performance .

28. Which one of the following demographic

characteristics reflects surface-level ● Ethnicity is a surface-level diversity characteristic
diversity? because it is visible and easily identifiable.
(a) Differences in value Surface-level diversity is the character traits that are
(b) Ethnicity visible. These characteristics are age, ethnicity, sex,
(c) Personality gender diversity, visible disabilities, body shape, and
(d) Work preferences size.
● In contrast, deep-level diversity refers to the
characteristics that are not visible and are often
hidden from others. These characteristics include
personality traits, values, beliefs, attitudes, and skills.

29. A ‘SMART’ mnemomic criterion is used in:

(a) Selection process. ● The SMART mnemonic criterion is used in
(b) Job rotation. performance management and employee-
(c) Performance management. performance management to guide in the setting of
(d) Compensation management

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 goals and objectives that are assumed to give better
results.
● The term was first proposed by George T. Doran.He
suggested that goals should be SMART (specific,
measurable, assignable, realistic and time-related)

30. Outplacement is the process of:

(a) removal of employees from the job. ● Outplacement is the process of helping redundant
(b) transferring the employee out of the country. employees to find new job opportunities.
(c) helping redundant employees to find new Companies usually offer this service to laid-off
job. employees, and it involves a range of supports such
(d) sending the employee on deputation to other as job search assistance, professional resume writing
organizations. services, and career counseling.Outplacement can
reduce stress and turmoil for transitioning employees
and mitigate risk for the employer.

31. Data regarding the inventory of a particular

item of usage in the production activities of Total price (1500*85) + (300*95) =156000
an organization are: the quantity in stock is Residual inventory on First-in-first-out
1500 units and the value of this stock is Rs. 1, = 156000-(900*85) = 105500
27, 500. (This works out to an average unit
cost of Rs. 85) During the ensuing year X, an
additional 300 units are purchased at a unit
cost of Rs. 95. Consumption in production
processes during the year X has been 600
units. Working by the First-in-First-out basis,
the value of the residual inventory of the item
at the end of the year X will be
(a) Rs. 1, 00, 000
(b) Rs. 1, 02, 500
(c) Rs. 1, 05, 000
(d) Rs. 1, 07, 500

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32. From the information give below calculate
the sum insurable: Insurance received= 88000000 x 20/100= 1760000
Date of fire_ 01-03-2016 special circumstances amount= 10% of 1760000
Turnover from 01-03-2015 t9o 29-02-2016 – = 176000
88000000 Total sum insurable= 1760000+ 176000= 19360000
Agreed GP ratio – 20%
Special circumstances clause provided for the
increase of turnover by 10%
(a) 1936000
(b) 4840000
(c) 1032000
(d) 2420000
● A cost apportionment base is a basis used by a
33. The cost of electric power should be
business to apportion its overhead costs. The base
apportioned over different departments
used should be appropriate for the overhead cost to
according to:
ensure that the cost is fairly apportioned between cost
(a) horsepower of motors
centres.
(b) number of light points
● In the case of the cost of electric power, it should be
(c) horsepower multiplied by machine hours
apportioned over different departments according to
(d) machine hours
horsepower multiplied by machine hours.

34. What is the underlying accounting concept

that supports no anticipation of profits but ● The concept of conservatism (also called
provision for all possible losses ? ‘prudence’) provides guidance for recording
(a) matching transactions in the book of accounts and is based on
(b) materiality the policy of playing safe. The concept states that a
(c) Consistency conscious approach should be adopted in ascertaining
(d) Conservatism income so that profits of the enterprise are not
overstated.
● If the profits ascertained are more than the actual, it
may lead to distribution of dividend out of capital,

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 which is not fair as it will lead to reduction in the
capital of the enterprise.

Labour law related 179 questions will be

uploaded on Anuj Garg telegram channel soon

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