Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Economic and Business Environment Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email State 1. Which of the following is NOT a measure of economic development? Gross Domestic Product (GDP) Human Development Index (HDI) Balance of Payments (BoP) Per Capita Income None 2. The term ‘trickle-down effect’ is related to: Redistribution of wealth from rich to poor Increase in inflation Rising unemployment Economic downturn None 3. Which of the following is a characteristic of an underdeveloped economy? High per capita income Dominance of the industrial sector High level of unemployment Advanced infrastructure None 4. Which of the following sectors is the backbone of the Indian economy? Agriculture Services Manufacturing Real Estate None 5. The Poverty Line in India is determined based on: Per capita income Minimum calorie intake Literacy rate Housing conditions None 6. The full form of NBFC is: Non-Banking Financial Corporation Non-Banking Finance Company National Bank of Finance and Credit None of the above None 7. The largest bank in India in terms of assets is: ICICI Bank HDFC Bank State Bank of India (SBI) Punjab National Bank None 8. Capital Market deals with: Short-term funds Long-term funds Day-to-day financial needs None of the above None 9. The money market is primarily used for: Raising long-term capital Meeting short-term liquidity needs Buying and selling shares None of the above None 10. Which of the following instruments is NOT a part of the money market? Treasury Bills Commercial Papers Certificate of Deposits Equity Shares None 11. Demand-pull inflation is caused by: Increase in aggregate demand Increase in production costs All of the above Decrease in money supply None 12. Cost-push inflation occurs due to: Increase in wages and production costs High demand for goods and services Decrease in tax rates None of the above None 13. Hyperinflation refers to: Moderate increase in prices Sudden drop in prices Extremely high and uncontrollable price rise Stable price levels None 14. The Phillips Curve shows the relationship between: Inflation and unemployment Inflation and GDP GDP and unemployment Interest rates and inflation None 15. The Consumer Price Index (CPI) measures: Prices of industrial goods Cost of living for consumers Inflation in the wholesale market Business tax rates None 16. Current Account Deficit (CAD) occurs when: Exports exceed imports Imports exceed exports Foreign exchange reserves increase GDP increases None 17. The exchange rate refers to: The rate at which one currency is exchanged for another The interest rate of banks The percentage of tax on international trade None of the above None 18. Depreciation of currency leads to: Increase in exports Decrease in inflation Both a and c None 19. The Balance of Payments (BoP) records: Financial transactions of government employees All economic transactions between a country and the rest of the world Only foreign exchange reserves Domestic economic policies None 20. Foreign Direct Investment (FDI) means: Investment made by foreign companies in domestic companies Short-term foreign loans Import of foreign products None of the above None 21. Liberalization in India refers to: Reducing government regulations and restrictions on businesses Increasing government control over industries Nationalization of private companies Imposing more trade restrictions None 22. Privatization is the process of: Transferring ownership of businesses from public to private sector Nationalizing private companies Increasing government control over industries Imposing trade barriers None 23. Disinvestment refers to: Government selling its shares in public sector enterprises Government increasing its investment in companies Reducing foreign direct investment None of the above None 24. The New Economic Policy of 1991 in India focused on: Liberalization, Privatization, and Globalization Nationalization of industries Import substitution policies Complete government control over businesses None 25. The Atmanirbhar Bharat Abhiyan was launched to: Promote self-reliance in India Increase foreign imports Reduce industrial output Encourage dependence on global trade None 26. Which of the following is NOT a component of the business environment? Economic environment Political environment Personal environment Technological environment None 27. The 'Make in India' initiative was launched in which year? 2012 2014 2016 2018 None 28. Which organization publishes the ‘Ease of Doing Business’ report? Reserve Bank of India International Monetary Fund World Bank NITI Aayog None 29. Which type of unemployment is caused by changes in the structure of an economy? Frictional unemployment Structural unemployment Seasonal unemployment Cyclical unemployment None 30. Which index is used to measure industrial production in India? CPI IIP GDP BoP None 31. The National Income of India is estimated by: RBI SEBI CSO (Central Statistics Office) NITI Aayog None 32. Which of the following is a direct tax? Goods and Services Tax (GST) Excise duty Income tax Customs duty None 33. Which government scheme aims to provide 100 days of wage employment to rural households? Make in India MGNREGA Start-up India Digital India None 34. Who regulates the insurance sector in India? SEBI IRDAI RBI NABARD None 35. Which of the following is NOT a function of the World Trade Organization (WTO)? Promote free trade Settle trade disputes Provide loans to countries Negotiate trade agreements None 36. Which agreement regulates intellectual property rights at the global level? WTO TRIPS GATT IMF None 37. Which of the following is NOT a function of the International Monetary Fund (IMF)? Providing short-term financial assistance Stabilizing exchange rates Providing long-term development loans Monitoring global financial stability None 38. Which country is India’s largest trading partner in terms of total trade volume? China USA UAE Germany None 39. Which organization is responsible for funding infrastructure projects in rural India? NABARD SIDBI SEBI IRDAI None 40. The World Economic Forum (WEF) is headquartered in: Washington, D.C. Geneva Davos Paris None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. 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