Learn Mode

Economics — Indian Economy MCQs Part 1

Review questions, analyze choices, and reveal correct answers at your own pace.

1. Who among the following from India functions as the ex-officio Governor on the Board of Governors of the International Monetary Fund?

A. President
B. Prime minister
C. Finance minister
D. RBI governor
Correct Option: Finance minister

2. As per the Lakdawala Formula which among the following is accepted to estimate urban poverty?

A. Consumer price Index for industrial labors
B. Consumer price Index for Agriculture
C. Wholesale Price index
D. 2 & 3
Correct Option: Consumer price Index for industrial labors

3. 3Which among the following is the oldest and most common form of Electronic Funds Transfer System?

A. Wire transfers
B. Automatic Teller Machines
C. Cash Dispensers
D. Point of Sale Terminals
Correct Option: Cash Dispensers

4. On which of the following Date a Bank publishes its balance sheet ?

A. 31-Mar
B. 1-Apr
C. /31/2021
D. 1-Jan
Correct Option: 31-Mar

5. In which year 30-scrip Sensex was launched by the BSE the oldest bourse in the entire Asian continent?

A. 10
B. 13
C. 16
D. 10
Correct Option: 16

6. Who among the following was the first Deputy Chairman of the Planning commission ?

A. VT Krishnamachari
B. CM Trivedi
C. Gulzari Lal Nanda
D. Ashok Mehta
Correct Option: VT Krishnamachari

7. Which among the following is a correct definition of fiscal deficit?

A. The gap between projected or estimated GDP and actual GDP
B. The total value of currency notes issued and currency actual in circulation
C. The gap between actual borrowings of government of India and expected expenditures as per budget provisions
D. Excess of Govts disbursement comprising current and capital expenditures over its current receipts
Correct Option: Excess of Govts disbursement comprising current and capital expenditures over its current receipts

8. Which among the following is the correct definition of Real Burden of Tax

A. The reduction in the disposable income to the tax payers
B. Amount of tax being paid by the taxpayers to the authorities
C. Additional expenses incurred by the taxpayers in addition to the amount paid to the authorities
D. The Loss of the welfare to the taxpayers and the community as a whole
Correct Option: The Loss of the welfare to the taxpayers and the community as a whole

9. To avoid a Prompt Coercive Action from the Reserve Bank of India a bank should not fall in which of the following conditions?

A. It should have a very high NPA
B. It should have a very low NPA
C. It should have high capital adequacy Ratio
D. It should have high profits
Correct Option: It should have a very high NPA

10. Express Remit is the brand name of a remittance facility by which of the following banks?

A. State Bank of India
B. Punjab National Bank
C. Bank of Baroda
D. ICICI Bank
Correct Option: State Bank of India

11. Which of the following company introduced for the first time Traveller Cheques in the form of circular notes?

A. Cox & King
B. Thomas Cook
C. American Express
D. HSBC Bank USA
Correct Option: Thomas Cook

12. In which of the following actions will be taken by Reserve bank of India to curb the excess liquidity when the deficit financing increases?

A. Increases CRR
B. Decreases Bank rate
C. Resorts to open market operations
D. Raises the Tax rates
Correct Option: Increases CRR

13. Global Trust Bank was acquired by which of the following banks in year 2004?

A. Canara Bank
B. Union Bank of India
C. Corporation Bank
D. Oriental Bank of Commerce
Correct Option: Oriental Bank of Commerce

14. Which among the following is a correct impact of Dear Money ?

A. Borrowings become cheap
B. Borrowings become expensive
C. Borrowings become either cheap or expensive
D. There is no impact of Dear Money on Borrowings
Correct Option: Borrowings become expensive

15. Which of the following imaginary circumstances the Reserve bank of India will opt to sell Government securities in the open market?

A. When the Foreign funds inflow is meek
B. When there is enormous Foreign Funds Inflow in the Indian Economy
C. When banks have low liquidity and need liquidity
D. When Government of India asks the RBI to sell securities
Correct Option: When there is enormous Foreign Funds Inflow in the Indian Economy

16. Which among the following are TOP 3 debtors of World Bank ?

A. India South Africa Mexico
B. India Mexico South Africa
C. India Mexico Pakistan
D. Mexico India South Africa
Correct Option: India Mexico South Africa

17. Which among the following group best fits in a definition of a shadow banking system?

A. Scheduled Commercial Banks Non Banking Finance Companies Hedge Funds
B. Non banking Finance Companies Investment banks Hedge funds
C. Scheduled Commercial Banks Private Banks and NBFCs
D. Scheduled Commercial banks Cooperative Banks and Investment Banks
Correct Option: Non banking Finance Companies Investment banks Hedge funds

18. In context with the bank loan disbursements a Crop maturing in minimum of which of the following periods is called a Short Term Crop?

A. 6 Months
B. Months
C. Months
D. 36 Months
Correct Option: 6 Months

19. Who among the following in India can borrow using the facility of cash management bills?

A. Government
B. RBI
C. Commercial banks
D. Corporate
Correct Option: Government

20. In India the Foreign Exchange Reserves are kept in the custody of which among the following?

A. Ministry of Finance
B. EXIM bank
C. Reserve Bank of India
D. Selected Public Sector Banks
Correct Option: Reserve Bank of India

21. What is the minimum public shareholding (MPS) mandated by SEBI for Private Companies and PSUs respectively?

A. 5% and 0%
B. 0% and 5%
C. 10% and 25%
D. 25% and 10%
Correct Option: 25% and 10%

22. Which among the following closest instrument to Gold ETF?

A. Debenture
B. G-Sec security
C. Mutual Fund
D. Commercial Paper
Correct Option: Mutual Fund

23. A transfer payment is a payment that is __:

A. made by the government to its current workers
B. made to people who are needy
C. For in-kind services provided to the government
D. For which no services or goods are rendered
Correct Option: For which no services or goods are rendered

24. The Reserve Bank of India follows the principle of reciprocity and single mode of presence with respect to the __:

A. Private Banks
B. Foreign Banks
C. Regional Rural Banks
D. Urban Cooperative Banks
Correct Option: Foreign Banks

25. Which among the following indicates the total borrowing requirements of Government from all sources?

A. Revenue deficit
B. Fiscal Deficit
C. Primary Deficit
D. Effective Revenue Deficit
Correct Option: Fiscal Deficit

26. The time period between jobs when a worker is transitioning from one job to another is known as__:

A. Turnover unemployment
B. Cyclical unemployment
C. Structural unemployment
D. Frictional unemployment
Correct Option: Frictional unemployment

27. Imposing an Import quota helps in__: correcting unfavourable balance of payments improving balance of trade protecting domestic industries promoting exports Select the correct option from the codes given below: 2

A. Only 1 & 2
B. Only 1 & 3
C. Only 1 2 & 3
D. 1 2 3 & 4
Correct Option: Only 1 2 & 3

28. Which among the following is / are included in the Public Debt? Government debts to institutions and people in the country Loans raised from the public by various companies Loans advanced by banks to business houses of public Select the correct option from the codes given below:

A. Only 1
B. Only 1 & 2
C. Only 1 & 3
D. 1 2 & 3
Correct Option: Only 1

29. Consider the following: External Commercial Borrowings Treasury bills Special drawing rights Which of the above can serve as a tool to combat current account deficit?

A. 1 Only
B. 1 and 2 Only
C. 1 and 3 Only
D. 12 and 3
Correct Option: 12 and 3

30. 30The two presses of Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) are located at:

A. Mysore and Salboni
B. Nashik and Dewas
C. Mysore and Dewas
D. Mumbai and Kolkata
Correct Option: Mysore and Salboni

31. Which Thithankaras philosophy influenced the Economics in Jainism ?

A. Mahavira
B. Gowthama Buddha
C. Rishabanath
D. Prashavanatha
Correct Option: Mahavira

32. Which item contributes maximum for Indian Imports?

A. Oil
B. Gems
C. Automobiles
D. Iron and steel
Correct Option: Oil

33. What is the spatial arrangement of crops in an area known as?

A. Cropping pattern
B. Land topography
C. Crop arrangement
D. Crop allignment
Correct Option: Cropping pattern

34. Which is the top cotton-producing state?

A. Gujarat
B. Maharashtra
C. Karnataka
D. Rajasthan
Correct Option: Gujarat

35. Which of the following is / are the disadvantages of GM seeds? High seed cost Impact on the environment Impact on human health High productivity Select the correct option from the choices given below:

A. 1 2 and 4 only
B. 1 2 and 3 only
C. 1 2 and 4 only
D. 1 and 2 only
Correct Option: 1 2 and 3 only

36. Which variety of mango has GI tag ?

A. Chausa
B. Langra
C. Alphonso
D. All of the above
Correct Option: Alphonso

37. What is the contribution of livestock to total agricultural output?

A. 3545%
B. 1545%
C. 2525%
D. 35.00%
Correct Option: 2525%

38. Which fruit variety is PUSA MAJESTIC?

A. Guava
B. Papaya
C. Mango
D. Orange
Correct Option: Papaya

39. Which city is called Grapes capital in India?

A. Nasik
B. Ahmednagar
C. Satara
D. Sangli
Correct Option: Nasik

40. Which among the following is incorrect regarding Coffee Krishi Tharanga?

A. Coffee KrishiTharanga services are aimed at providing customized information and services to increase productivity
B. It was implemented in Chikmagalur and Hassan districts of Karnataka State covering 30000 farmers
C. SIDBI has funded the project
D. All the above
Correct Option: SIDBI has funded the project

41. Why was Gopal Ratna awards given?

A. For doing organic farming
B. For maintaining the best herd of Indigenous Breed
C. For using Bio gas
D. None of the above
Correct Option: For maintaining the best herd of Indigenous Breed

42. For which among the following reasons tank irrigation is practiced mainly in Peninsular India? 1 Undulating relief and hard rocks make it difficult to dig canals and wells 2 Most of the rivers are rainfed 3 Of compact nature of population and cultivating field Choose the correct option from the codes given below:

A. 1 only
B. 1 & 2
C. 1 & 3
D. 1 2 & 3
Correct Option: 1 & 2

43. Which among the following is the nodal ministry for FSSAI?

A. Ministry of health and family welfare
B. Minsitry of agricutlure
C. Ministry of environmentforest and climate change
D. Ministry of commerce
Correct Option: Ministry of health and family welfare

44. Who published The State of the Worlds Biodiversity for Food and Agriculture? 4

A. World Bank
B. World Economic forum
C. Food and Agricultural organization
D. UNESCO
Correct Option: Food and Agricultural organization

45. What is the initial corpus of Long Term Irrigation Fund (LTIF)?

A. 30000 crores
B. 20000 crores
C. 10000 crores
D. None of the above
Correct Option: 20000 crores

46. When was Industries (Development and Regulation) Act passed?

A. 14
B. 151
C. 160
D. 155
Correct Option: 151

47. How many focus sectors are there under Make in India initiative?

A. 30 sectors
B. 25 sectors
C. 1 sectors
D. 20 sectors
Correct Option: 25 sectors

48. Which state is the largest tendu leaves producer in India?

A. Arunachal Pradesh
B. Andhra Pradesh
C. Chattisgarh
D. Madhya Pradesh
Correct Option: Madhya Pradesh

49. What type of irrigation is popular in the areas of Satluj-Ganga plain?

A. Tank
B. Canal
C. Wells & Tubewells
D. None of the above
Correct Option: Wells & Tubewells

50. Which is the largest sugar-producing country in the world?

A. India
B. Brazil
C. China
D. None of the above
Correct Option: Brazil