RRB NTPC Economics and Finance 1 — Questions and Answers
Question 1: What does GDP stand for in economics?
- Gross Domestic Product (Correct answer)
- General Development Plan
- Gross Development Potential
- Global Demand Parameter
Correct answer: Gross Domestic Product
GDP stands for Gross Domestic Product, which measures the total monetary value of all goods and services produced within a country's borders in a given period.
Question 2: Which organization is responsible for formulating and implementing monetary policy in India?
- Ministry of Finance
- SEBI
- Reserve Bank of India (RBI) (Correct answer)
- NITI Aayog
Correct answer: Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) is India's central bank and is responsible for regulating the money supply and maintaining financial stability through monetary policy.
Question 3: What is the full form of NITI Aayog?
- National Institution for Transforming India (Correct answer)
- National Integrated Trade and Industry Organization
- New Initiative for Total Infrastructure
- National Institute for Technology Integration
Correct answer: National Institution for Transforming India
NITI Aayog stands for National Institution for Transforming India, which replaced the Planning Commission in January 2015.
Question 4: Goods and Services Tax (GST) is classified as which type of tax?
- Direct tax
- Indirect tax (Correct answer)
- Progressive tax
- Wealth tax
Correct answer: Indirect tax
GST is an indirect tax levied on the supply of goods and services, collected by the seller from the buyer and remitted to the government.
Question 5: Fiscal deficit is defined as the difference between the government's total expenditure and its total receipts excluding which of the following?
- Tax revenues
- Non-tax revenues
- Borrowings (Correct answer)
- Grants
Correct answer: Borrowings
Fiscal deficit = Total Expenditure − Total Receipts (excluding borrowings); it represents the amount the government needs to borrow to meet its expenses.
Question 6: India's First Five Year Plan was launched in which year?
- 1947
- 1950
- 1951 (Correct answer)
- 1956
Correct answer: 1951
India's First Five Year Plan was launched in 1951 under Prime Minister Jawaharlal Nehru, focusing primarily on agricultural development.
Question 7: Which of the following best describes inflation?
- A sustained decrease in the general price level
- A sustained increase in the general price level (Correct answer)
- A temporary rise in the value of currency
- A reduction in government expenditure
Correct answer: A sustained increase in the general price level
Inflation refers to a sustained and general rise in the price level of goods and services in an economy over a period of time, reducing the purchasing power of money.
RRB NTPC Economics and Finance 1
What does GDP stand for in economics?