Indian Economy MCQs

Notes:
Monetary policy is conducted by central banks to control money supply and interest rates. In India, the Reserve Bank of India manages monetary policy under the Reserve Bank of India Act, 1934. Changing interest rates is a primary method to influence inflation and economic growth. The Monetary Policy Committee determines policy repo rates. Interest rate changes affect borrowing, spending, and inflation in the economy.

Notes:
Short Term Funds – Indian Money Market,
Medium and Long Term Funds- Indian Capital Market

Notes:
Anhydrous ammonia contains about 82% nitrogen by weight. It is a gaseous fertilizer used primarily in large-scale commercial agriculture. It was first used as a fertilizer in the early twentieth century. Anhydrous ammonia must be stored under high pressure or at low temperature to remain in liquid form for application. It is injected into the soil to minimize loss through volatilization.

Notes:
The call money is the short-term money market instrument where money is borrowed or lent on demand for a day. It is also known as overnight money market instrument. Intervening holidays and/or Sunday are excluded for this purpose. Thus, it is money borrowed on a day and repaid on the next working day (irrespective of the number of intervening holidays).

Notes:
An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks. The central bank can either buy or sell government bonds in the open market.

Notes:
MUDRA (SIDBI) Bank operates as a refinance agency primarily providing refinance support to banks, MFIs, and NBFCs for lending to micro and small enterprises. It also provides support services such as management of financing portals and data analysis. It does not directly lend to micro enterprises. MUDRA Bank operates under the Pradhan Mantri MUDRA Yojana scheme since its formation in 2015.

Notes:
The World Bank classifies countries by gross national income (GNI) per capita using income bands updated each year. In the FY2027 classification, India continues to fall in the lower-middle-income category. This means India’s GNI per capita is above the low-income threshold but below the upper-middle-income threshold. Hence, among the given options, the correct classification is lower-middle-income economy.

Notes:
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Member of G7. The FATF has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction. Group of 7 (G7) is a group consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

Notes:
The World Economic Forum publishes the Travel and Tourism Development Index. The index replaced the Travel & Tourism Competitiveness Index in 2021. TTDI assesses the tourism sectors of various countries. The World Economic Forum is headquartered in Geneva, Switzerland and was founded in 1971. The latest TTDI report was released in 2024.

Notes:
The National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation, conducts large-scale sample surveys and collects data on various sectors, including the unorganised sector. It is the present institutional name used for this function. CSO mainly handles statistical coordination, ASI relates to industrial statistics, and RBI is India’s central bank. Hence, NSO is the correct answer.