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. World Bank Headquarters located at:
[A] Switzerland
[B] Washington DC
[C] New York
[D] Paris
Show Answer
Correct Answer: B [Washington DC]
Notes:
World Bank is one of five institutions created at the Breton Woods Conference in 1944. World Bank is part of the United Nations system, but its governance structure is different. World Bank’s headquarter is situated at Washington DC.
2. In which of the following countries first Stock Exchange opened?
[A] Uk
[B] Netherlands
[C] USA
[D] India
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Correct Answer: B [Netherlands]
Notes:
The first stock exchange was in the Netherlands when the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange
3. Which of the following commodities are directly affected by the fluctuations in international rates of the crude oil?
[A] Edible Oils
[B] Cereals
[C] Gold & Silver
[D] Consumer nondurable
Show Answer
Correct Answer: C [Gold & Silver]
Notes:
Gold and crude oil process have a direct relationship. The Rupee – Dollar exchange rate forms the basis for movement of Gold and silver process in the country. India is a net importer of crude oil. Whenever there is an increase in crude oil price at the international market, the demand for USD increased and hence leads to Rupee value depreciation against USD. Under this scenario, the import of gold and silver becomes costlier and hence prices of gold move up.
4. Which among the following authority decides upon any issues regarding the revision of fee collected as Development Fee from Airports in India?
[A] Airport Authority of India
[B] Airports Economic Regulatory Authority
[C] Ministry of Civil Aviation
[D] Secretary , Ministry of Civil Aviation
Show Answer
Correct Answer: B [Airports Economic Regulatory Authority]
Notes:
The Airports Economic Regulatory Authority (AERA) Bill 2007 ensures that the watchdog monitors performance standards of airports and regulate tariff and other charges for aeronautical services including Airport
5. The minimum interest rate of a bank below which it is not viable to lend, is known as ____:
[A] Reserved Rate
[B] Base Rate
[C] Marginal Rate
[D] Prime Lending Rate
Show Answer
Correct Answer: B [Base Rate]
Notes:
The correct answer is “Base Rate.” The Base Rate is the minimum interest rate set by a bank for lending to its customers. It serves as a benchmark for various loans and is influenced by factors like the central bank’s policy rate and the bank’s cost of funds. The Base Rate ensures that banks cover their costs and maintain profitability while lending. In many countries, including India, the Base Rate is a crucial component of monetary policy and financial stability.
6. Which of the following bodies approves the Fair and Remunerative Price of Sugarcane?
[A] Cabinet Committee on Economic Affairs
[B] Commission for Agricultural Costs and Prices
[C] Directorate of Marketing and Inspection, Ministry of Agriculture
[D] Agricultural Produce Marketing Committee
Show Answer
Correct Answer: A [ Cabinet Committee on Economic Affairs ]
Notes:
Approval comes from Cabinet Committee on Economic Affairs (CCEA). The FRP is the minimum price that sugarcane farmers are legally guaranteed
7. Which of the following committee has great role in forming a public grievance system for a customer suffering from grievances related to Housing Loans?
[A] Goiporia Committee
[B] Jilani Committee
[C] Mitra Committee
[D] Rangarajan Committee
Show Answer
Correct Answer: A [Goiporia Committee]
Notes:
RBI had set up in 1990 a Committee headed by Shri M.N.Goiporia, the then Chairman of SBI. The Committee had made various recommendations to ensure improvement in the customer service in the banks.
8. Which one among the following industries is the maximum consumer of water in India?
[A] Engineering
[B] Paper and pulp
[C] Textiles
[D] Thermal power
Show Answer
Correct Answer: C [Textiles]
Notes:
Textile industry is a leading consumer of water and it ranks among ten top water consuming industries. This means that huge amounts of water are used to dye, finish, and wash clothes. In India alone, the textile industry uses 425,000,000 gallons of water daily and approximately 500 gallons of water are used in the production of just one pair of jeans.
9. Which of the following is called GDP Deflator?
[A] Ratio of nominal to real GNP
[B] Ratio of nominal to real CPI
[C] Ratio of real to nominal GNP
[D] Ratio of nominal to real GDP
Show Answer
Correct Answer: D [Ratio of nominal to real GDP]
Notes:
The GDP deflator is a measure of price inflation. It is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100. Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation
10. Which of the following define Deficit Financing?
[A] Difference of total expenditure and income by revenue from all sources
[B] Government spends in excess of revenues so that a budget deficit is incurred which is financed by the borrowings
[C] Difference in borrowing and external and internal resources
[D] Capital expenditure on items of public construction, public enterprises and public borrowings
Show Answer
Correct Answer: B [Government spends in excess of revenues so that a budget deficit is incurred which is financed by the borrowings]
Notes:
Deficit financing is the budgetary situation where expenditure is higher than the revenue. It is a practice adopted for financing the excess expenditure with outside resources. The expenditure revenue gap is financed by either printing of currency or through borrowing.
