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. Which among the following is the highest credit risk rating that can be awarded to any company by CRISIL?
[A] AAA
[B] AAA+
[C] AA+
[D] A++
Show Answer
Correct Answer: A [AAA]
Notes:
CRISIL was the first credit rating agency in India, formed in the year1988. In 2005, it became a subsidiary of American company S&P Global. The highest credit risk rating awarded to any company is ‘AAA’ and the lowest is ‘D’.
2. Which state led sugarcane production in India in 2023–24?
[A] Uttar Pradesh
[B] Maharashtra
[C] Tamil Nadu
[D] Andhra Pradesh
Show Answer
Correct Answer: A [Uttar Pradesh]
Notes:
Uttar Pradesh contributed over 40% of India’s sugarcane output in the 2023–24 season, with an estimated 220–230 million tonnes. The state consistently leads sugarcane production due to fertile alluvial soil, reliable irrigation from the Ganga basin, and a favorable subtropical climate. Maharashtra ranked second with about 95–100 million tonnes. Data is consistent with figures up to 2024 estimates.
3. Rs. 100 notes are printed at which locations in India?
[A] Only Nashik and Dewas
[B] Mysore and Salboni only
[C] Noida and Hoshangabad
[D] All of the above locations
Show Answer
Correct Answer: D [All of the above locations]
Notes:
Currency notes of Rs. 100 are printed at four locations in India: Currency Note Press in Nashik (Maharashtra), Bank Note Press in Dewas (Madhya Pradesh), and Bharatiya Reserve Bank Note Mudran Ltd. presses in Mysore (Karnataka) and Salboni (West Bengal). Nashik and Dewas presses are operated by Security Printing and Minting Corporation of India Ltd. Mysore and Salboni presses are managed by BRBNMPL.
4. What was the nationality of Mahbub ul Haq, one of the pioneers of Human development theory and co-founder of the Human Development Report?
[A] Uk
[B] USA
[C] Pakistan
[D] India
Show Answer
Correct Answer: C [Pakistan]
Notes:
Human Development Report was first launched in 1990 by the Pakistani Economist Mahbub ul Haq and Indian Nobel laureate Amartya Sen.
5. Which among the following groups of Banks in India was previously referred as ‘Other Scheduled Commercial Banks’?
[A] National Banks
[B] Foreign Banks
[C] Scheduled Cooperative Banks
[D] Private Banks
Show Answer
Correct Answer: D [Private Banks]
Notes:
The correct answer is “Private Banks.” In India, “Other Scheduled Commercial Banks” referred to banks that did not fall into the categories of National Banks or Foreign Banks. Private Banks, which are owned by private entities, were classified under this term before the regulatory framework evolved. As of now, the Reserve Bank of India (RBI) categorizes banks into various groups, including Public Sector Banks, Private Sector Banks, Foreign Banks, and Scheduled Cooperative Banks. Notably, the first private bank in India was the “Oudh Commercial Bank,” established in 1881.
6. In which year RBI was empowered to regulate money, forex, G-sec and gold related securities market?
[A] 2004
[B] 2006
[C] 2008
[D] 2010
Show Answer
Correct Answer: B [2006]
Notes:
The Reserve Bank of India (RBI) was empowered to regulate the money, foreign exchange, government securities, and gold-related securities markets in 2006. This was part of the amendments made to the Reserve Bank of India Act, 1934, which aimed to enhance the regulatory framework and improve market efficiency. The move was important in promoting financial stability and transparency in India’s financial markets.
7. Which statement is true about an equity fund?
[A] It guarantees fixed returns to investors
[B] It invests equally in debt and equity securities
[C] It invests mainly in stocks for long-term capital growth
[D] It assures predictable growth regardless of markets
Show Answer
Correct Answer: C [It invests mainly in stocks for long-term capital growth]
Notes:
An equity fund is a pooled investment scheme that invests predominantly in shares of companies. SEBI regulations in India require at least 65% of total assets in equities or equity-related instruments for classification as an equity fund. These funds seek long-term capital appreciation by investing in listed companies. Returns depend on market performance and Net Asset Value. Equity funds do not offer guaranteed or fixed returns.
8. Consider the following:
- Short Term Funds
- Medium Term Funds
- Long Term Funds
Which among the above is/ are dealt in the Indian Capital Market?
[A] 1 & 2
[B] 2 & 3
[C] 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: B [2 & 3]
Notes:
Short Term Funds – Indian Money Market,
Medium and Long Term Funds- Indian Capital Market
9. Which of the following was target in Integrated Action Plan (IAP)?
[A] Drought
[B] Terrorism
[C] Left Wing Extremism
[D] Widespread Poverty
Show Answer
Correct Answer: C [Left Wing Extremism]
Notes:
The Integrated Action Plan (IAP) is aimed at bridging the development deficit in the extremely backward areas that are affected by Left Wing Extremism.
10. Which price index measures headline inflation in India?
[A] GDP Deflator
[B] WPI
[C] CPI-AL/RL
[D] CPI-IW
Show Answer
Correct Answer: B [WPI]
Notes:
The Wholesale Price Index (WPI) is released monthly by the Office of the Economic Adviser, Ministry of Commerce and Industry. WPI has been the main index for measuring headline inflation in India since 1942. It covers commodities at the wholesale stage and is published with a base year of 2011-12. The index includes 697 items, such as primary articles, fuel, and manufactured products.
