Indian Economy MCQs
Indian Economy Multiple Choice Questions (MCQs) for SSC, State and all One Day Examinations of India. Objective Questions on Indian Economy for competitive examinations.
1. In which year first five year plan was launched?
[A] 1950
[B] 1951
[C] 1952
[D] 1953
Show Answer
Correct Answer: B [1951]
Notes:
The first five-year plan of India was launched in the year 1951, with the main focus on development of the primary sector. It was presented by the first Indian prime minister, Jawaharlal Nehru.
2. A systematic record of all economic transactions completed between residents of a country and the rest of the world in a year is known as..?
[A] Net Capital Flow
[B] Balance of Payment
[C] Balance of Trade
[D] Absolute Flow
Show Answer
Correct Answer: B [Balance of Payment]
Notes:
The Balance of International payments or Balance of Payments refers to the systematic and summary record of a country’s economic and financial transactions with the rest of the world, over a period of time.
The three main components of BoP are Current Account, Capital Account and Official Reserve Transactions
3. Which among the following revolutions is related to ‘fertilizers’?
[A] Silver Revolution
[B] Grey Revolution
[C] Golden Revolution
[D] Pink Revolution
Show Answer
Correct Answer: B [Grey Revolution]
Notes:
Green Revolution- Food grains,
White Revolution Milk,
Yellow Revolution-Oil seeds,
Blue Revolution-Fisheries
Golden Revolution-Fruits;
Silver Revolution-Eggs,
Round Revolution Potato,
Pink Revolution-Meat,
Grey Revolution (Fertilizers)
4. Rs. 100 notes are printed in which of the following?
[A] The Indian Security Press Nasik
[B] The Security Printing Press Hyderabad
[C] The bank Note Press, Dewas
[D] All1,2&3
Show Answer
Correct Answer: D [All1,2&3]
Notes:
The currency notes in India are printed in 4 presses. Two of them are owned by the Government of India and are located at Nashik and Devas. Two others are owned by the Reserve Bank of India at Mysore and Salboni.
5. Which among the following defines ‘currency depreciation” of a currency?
[A] Fall in the exchange rate of one currency in terms of other currencies
[B] Fall in the exchange rate of other currencies in terms of one currencies
[C] Decrease in the volume of a particular currency
[D] Increase in the exchange rate of a currency
Show Answer
Correct Answer: A [Fall in the exchange rate of one currency in terms of other currencies]
Notes:
Currency depreciation is the loss of value of a country’s currency with respect to one or more foreign reference currencies. This is a term used in floating exchange rate system, where the exchange rates of a currency are market driven and not fixed by the country’s central bank.
6. In which of the following countries, International Rice Research center is Located?
[A] Thailand
[B] Malaysia
[C] Philippines
[D] Indonesia
Show Answer
Correct Answer: C [Philippines]
Notes:
The International Rice Research Institute (IRRI) is headquartered in Philippines and has operating offices in seventeen countries. The Institute was originally established in the yeat 1960. It aims to reduce poverty and hunger, improve the health of rice farmers and consumers.
7. Which among the following was previously known as Imperial Bank of India?
[A] State bank of India
[B] Reserve Bank of India
[C] Punjab National bank
[D] ICICI
Show Answer
Correct Answer: A [State bank of India]
Notes:
The correct answer is State Bank of India (SBI). It was established in 1955, evolving from the Imperial Bank of India, which itself was formed in 1921. The Imperial Bank was a successor to the Bank of Calcutta, founded in 1806, making SBI one of the oldest banks in India. SBI is now the largest bank in India, serving millions of customers worldwide.
8. 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 NBFC’s
[D] Scheduled Commercial banks, Cooperative Banks and Investment Banks
Show Answer
Correct Answer: B [Non banking Finance Companies, Investment banks, Hedge funds]
Notes:
The correct answer is “Non Banking Finance Companies, Investment banks, Hedge Funds.” Shadow banking refers to financial intermediaries that operate outside traditional banking regulations. Non-Banking Finance Companies (NBFCs) provide credit and financial services without being classified as banks. Investment banks engage in activities like underwriting and trading, while hedge funds pool capital to invest in various assets, often using leverage. Together, they form a system that can create credit and liquidity similar to traditional banks but without the same regulatory oversight, which can lead to systemic risks.
9. What are the General Anti-Avoidance Rules?
[A] GAAR is a set of rules aimed at curbing aggressive tax planning
[B] GAAR is a set of rules aimed at curbing money laundering by Indians to Foreign countries
[C] GAAR is a set of rules aimed at regulating investments by Indians in foreign Countries
[D] GAAR is a set of rules aimed at regulating investments by Foreigners in India
Show Answer
Correct Answer: A [GAAR is a set of rules aimed at curbing aggressive tax planning]
Notes:
General Anti-Avoidance Rule or GAAR is a broad set of rules aimed at curbing aggressive tax planning. These rules will empower tax authorities to disregard any arrangement if its main purpose is to obtain tax benefit. The arrangement as a whole or in part may be disregarded and tax benefit denied.
10. Which of the following bodies issues white-colour and blue-colour forms to investors?
[A] SEBI
[B] IrDA
[C] RBI
[D] NSE
Show Answer
Correct Answer: A [ SEBI ]
Notes:
White colour forms are for Resident Indian, and blue colour forms are for NRIs, Foreign Venture Capital, Investor, and Foreign Institutional Investors. These forms are issued by SEBI for investment in capital market.
