STI Main 2014- Paper 2


In the context of international capital movement, consider the following: 

a. Rate of interest 

b. Speculation about rate of interest 

C. Marginal efficiency of capital 

d. Influence of World Bank 

Which of the above can influence the movement of international capital ?


Which of the following was the main contentious issue of the World Trade Organisation after the Doha Round ? 


In the context of economic globalization, consider the following statements :
a. Economic development of backward countries.

b. Breaking down national barriers of trade.

c. International spread of trade and commerce.

d. Growing power of multi-national companies

Which of the statements given above are correct?


In the context of balance of payments, consider the following: 

a. Adopting a policy of deflation 

b. Reducing expenditure 

c. Import promotion

d. Foreign aid

Which of the above can be used as measures to correct disequilibrium in Balance of Payments? 


Regarding foreign direct investment, consider the following statements : 

a. Inflow of foreign investment increases unemployment.

b. Foreign investment constitute a net addition to investible resources. 

c. Underdeveloped countries don't require foreign investment.

Which of the statements is/are correct ?


Fill in the blank by selecting the proper alternative from the following: Fiscal Deficit = Revenue Receipts +............ - Total expenditure 


The Fiscal Innovation 2000, zero base budgeting was designed by


The fastest growing tax for Central Government is/are 

a. Service tax 

b. Corporate tax

c. Income tax


Fill in the blank by selecting appropriate alternative from the following:

The 12th Finance Commission raised the share of States in the Central taxes upto __________.


Consider the following statements about the Indian Railways :

a. The Railways in India provide the principal mode of transportation for freight and passengers.

b. It made a modest beginning in 1853.

c.The first train steamed off from Mumbai to Thane.

d. About 43% of total track kilometre is electrified.

e. The network is divided into 19 zones.

f. Mumbai is the headquarters for 2 zones.

g. Kolkata is the headquarters for 3 zones.

Which one of the above statements is incorrect?


The crisis of state public debt is the result of increase in

a. Expenses on salaries

b. High interest rate

c. Debt waiver by the States

The correct answer is 


Fill in the blank by selecting proper option froin the following: The burden of fiscal imbalance correction during economic reforms has been primarily on __________.


Which airport has been adjudged as the world's best airport for the airport service quality amongst the airports handling 5 – 15 million passengers for the year 2009 by the Airports Council International  ?


"Modern Theory of Public expenditure” was developed by


The growing transfer of resources from the Centre to the States implies 

a. Increasing integration between State and Centre

b. Helpless dependence of States on Centre

c. Neglect of States to raise revenue


Zero-base budgeting 

a. Starts from previous year

b. Needs justification of activity

c. Considers cost control important 

d. Focuses on effectiveness


Which reforms have been suggested by Vijay Kelkar Committee in Indian tax system?


The public debt of India is composed of 

a. External Debt

b. Internal Debt 

c. Debt of Public Limited Companies 

d. Debt of Local Bodie


Repo rate means 

a. Discount rate at which banks borrow from RBI

b. Rate at which bank lends to industry
c. Short-term borrowing   

d. Discount rate at which Central Government borrow from banks 


What was the objective of Board of Industrial and Financial Reconstruction established in 1987 ?

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