🌾 INDIAN BANKING RADAR (IBR) -JAIIB MODEL PAPER PAPER I: INDIAN ECONOMY & INDIAN FINANCIAL SYSTEM

📘 JAIIB MODEL PAPER – 2

PAPER I: INDIAN ECONOMY & INDIAN FINANCIAL SYSTEM

🔥 IBR PREMIUM PRACTICE SERIES | MODULE A: INDIAN ECONOMIC ARCHITECTURE

Coverage: Indian Economy • Economic Planning • Sectors of the Economy 

Practice Set: 20 Original MCQs 

Difficulty Level: Moderate to Advanced 

Target: JAIIB Aspirants • Bank Officers • Banking Professionals

 📝 MODEL TEST – 20 MCQs

Q1. Which of the following best describes the Indian economy during the pre-British period?

A. Complete dependence on imported manufactured goods 

B. Predominance of agriculture alongside developed handicrafts and trade 

C. Exclusive dependence on heavy industries 

D. Absence of internal and external trade 

E. Complete integration with modern global financial markets 

Q2. Which of the following was a major characteristic of the Indian economy during British colonial rule?

A. Rapid expansion of indigenous heavy industries 

B. Complete elimination of agricultural dependence 

C. Universal industrial employment 

D. Decline of several traditional handicraft industries and growing colonial economic dependence 

E. Elimination of regional economic disparities 

Q3. The First Five-Year Plan in India covered which period?

A. 1951–1956 

B. 1956–1961 

C. 1961–1966 

D. 1966–1971 

E. 1947–1952 

Q4. The Planning Commission of India was established in which year?

A. 1947 

B. 1949 

C. 1950 

D. 1951 

E. 1952 

Q5. Which of the following was a principal objective of economic planning in India?

A. Maximising imports irrespective of domestic production 

B. Eliminating all private-sector participation 

C. Concentrating economic activity exclusively in metropolitan areas 

D. Replacing all market transactions with administrative allocation 

E. Promoting economic growth, employment and social justice 

Q6. Which of the following best distinguishes indicative planning from imperative planning?

A. Indicative planning prohibits all private investment 

B. Indicative planning guides economic decisions without relying entirely on compulsory targets 

C. Indicative planning is applicable only to agriculture 

D. Indicative planning eliminates the role of market prices 

E. Indicative planning requires the government to own every enterprise 

Q7. Which of the following was a significant source of financing for India's Five-Year Plans?

A. Foreign grants alone 

B. Currency printing alone 

C. Export duties alone 

D. Public savings, taxation, domestic borrowing and external assistance 

E. Private donations alone 

Q8. Which institution replaced the Planning Commission in India in January 2015?

A. NITI Aayog 

B. Finance Commission 

C. National Development Council 

D. Reserve Bank of India 

E. National Statistical Office 

Q9. Which of the following activities belongs to the primary sector?

A. Manufacturing cement 

B. Providing commercial banking services 

C. Cultivating paddy 

D. Developing computer software 

E. Operating a retail supermarket 

Q10. The conversion of raw cotton into finished textile products is primarily an activity of which sector?

A. Primary sector 

B. Quaternary sector 

C. Quinary sector 

D. Tertiary sector 

E. Secondary sector 

Q11. Which of the following is generally classified as a quaternary-sector activity?

A. Crop cultivation 

B. Scientific research and knowledge-intensive information services 

C. Road construction 

D. Retail trade 

E. Fishing 

Q12. The quinary sector is generally associated with which of the following?

A. Extraction of minerals 

B. Assembly-line manufacturing 

C. Routine transportation services 

D. High-level decision-making and senior leadership in government and business 

E. Subsistence farming 

Q13. Which agricultural revolution is primarily associated with increased milk production in India?

A. White Revolution 

B. Blue Revolution 

C. Green Revolution 

D. Yellow Revolution 

E. Golden Revolution 

Q14. Which of the following statements about India's structural transformation is most accurate?

A. Agriculture has consistently accounted for the largest share of India's GDP since independence 

B. The services sector has become insignificant as the economy has modernised 

C. The services sector has emerged as the largest contributor to India's economic output, while agriculture continues to support a substantial share of employment 

D. Industrialisation has eliminated employment in agriculture 

E. All three major sectors contribute equally to national output 

Q15. A sustained increase in manufacturing output without a proportionate increase in manufacturing employment may indicate which phenomenon?

A. Agricultural diversification 

B. Full employment 

C. Complete structural transformation 

D. Elimination of labour productivity differences 

E. Jobless or employment-light growth 

Q16. Which of the following is a characteristic commonly associated with the organised sector?

A. Absence of all statutory obligations 

B. Employment exclusively on a casual basis 

C. No formal accounting or regulatory requirements 

D. Mandatory absence of written employment contracts 

E. Greater formal regulation, records and compliance with applicable labour laws 

Q17. Which statement best describes the unorganised sector?

A. It consists exclusively of agricultural activities 

B. It includes many small and informal enterprises where formal registration and employment protection may be limited 

C. It includes only government-owned enterprises 

D. It is completely excluded from economic activity measurement 

E. It consists exclusively of large corporations 

Q18. Which of the following is an example of a sunrise industry in the Indian economy?

A. Traditional hand-operated grain milling alone 

B. Obsolete mechanical typewriter manufacturing 

C. Renewable energy technology and advanced semiconductor manufacturing 

D. Declining production of discontinued consumer products 

E. Conventional activities with no scope for technological change 

Q19. Which major economic reform package was introduced in India in 1991 in response to a severe balance-of-payments crisis?

A. Liberalisation, privatisation and globalisation reforms 

B. Introduction of the First Five-Year Plan 

C. Establishment of NITI Aayog 

D. Nationalisation of all private banks 

E. Abolition of all foreign trade 

Q20. Following the global financial crisis of 2008, which policy response was commonly used by governments, including India, to support economic activity?

A. Complete withdrawal of government expenditure 

B. Immediate prohibition of all bank lending 

C. Permanent closure of international trade 

D. Fiscal stimulus and supportive monetary measures, as appropriate to domestic conditions 

E. Elimination of all financial regulation 

✅ ANSWER KEY

 Q1.B 

Q2.D 

Q3.A 

Q4.C 

Q5.E 

Q6.B 

Q7.D 

Q8.A 

Q9.C 

Q10.E 

Q11.B 

Q12.D 

Q13.A 

Q14.C 

Q15.E 

Q16.E 

Q17.B 

Q18.C 

Q19.A 

Q20.D 

📚 QUICK REVISION POINTS

 1. First Five-Year Plan: 1951–1956.

2. Planning Commission: Established in 1950; replaced by NITI Aayog in 2015.

3. Economic planning: Aims to promote growth, employment, equitable development and efficient resource allocation.

4. Primary sector: Agriculture, forestry, fishing and mining.

5. Secondary sector: Manufacturing, construction and other industrial activities.

6. Tertiary sector: Trade, transport, banking, insurance and other services.

7. Quaternary sector: Knowledge-intensive activities such as research and information services.

8. Quinary sector: High-level decision-making and senior leadership activities.

9. Green Revolution: Increased foodgrain production, especially wheat and rice.

10. White Revolution: Milk production; closely associated with Operation Flood.

11. Structural transformation: A shift in the composition of output and employment as an economy develops.

12. Jobless growth: Economic growth that generates insufficient employment relative to output growth.

13. Organised sector: Formal structures and applicable statutory and regulatory compliance.

14. Unorganised sector: Informal and often small-scale economic activity with varying degrees of formal protection.

15. 1991 reforms: Liberalisation, privatisation and globalisation.

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 Disclaimer: This is an original practice paper prepared for educational purposes. It is not an official IIBF question paper.