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. “Interest rate risk” can be placed in which among the following categories?
[A] Credit risk
[B] Market risk
[C] Operating Risk
[D] All of above

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2. When a person has a saving account in the bank , the bank assumes the position of ___?
[A] Debtor
[B] Creditor
[C] Agency
[D] Depositor

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3. Who was the first Deputy Chairman of India’s Planning Commission?
[A] V.T. Krishnamachari
[B] C.M. Trivedi
[C] Gulzari Lal Nanda
[D] Ashok Mehta

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4. For which of the following, the Reserve Bank of India has stipulated a maximum Capital Adequacy Requirements in India?
[A] Private Sector Banks
[B] Banks that Undertake Insurance Business
[C] Local Area Banks
[D] Scheduled Commercial Banks

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5. The term “round tripping” in case of Foreign Direct Investments is related to which among the following?
[A] Use of FDI Funds out of Country
[B] Coming Back of Domestic Money as FDI
[C] Sending Back of Domestic Money as FDI
[D] Repatriation of the FDI made abroad

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6. Which among the following correctly denotes the Primary Deficit?
[A] Revenue Expenditure – Revenue Receipts
[B] sum of the net increase in holdings of treasury bills of the RBI and its contributions to the market borrowing of the government.
[C] Budgetary Deficit + Govt. market borrowings and liabilities
[D] Fiscal Deficit – Interest Payments

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7. Inflation Indexed Bonds is pegged to ___?
[A] WPI
[B] CPI
[C] Both WPI and CPI
[D] None of the above

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8. What is IPO in context to a company?
[A] The first sale of stock by a private company to the public
[B] Upgradation of shares from primary to secondary market
[C] Selling of shares at premium by a company
[D] Convert of a private limited company to public limited Company

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9. A country has crude birth rate of 44 and a crude death rate of 11. The number of immigrants is more than emigrants. What would be the rate of natural increase of population?
[A] 0.75%
[B] 3.3%
[C] 2.9%
[D] Can not be determined

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10. Which of the following is the apex financial institution responsible for development of Micro, Small and Medium Enterprises in India?
[A] IDBI
[B] SIDBI
[C] NABARD
[D] EXIM

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