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. What is the number of members in the Monetary Policy Committee (MPC)?
[A] 4
[B] 5
[C] 6
[D] 7

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2. Which of the following currencies is not included in the Special Drawing Rights (SDR) Currency Basket?
[A] Indian Rupee
[B] British Pound
[C] Japanese Yen
[D] Chinese Renminbi

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3. 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

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4. Which among the following are called “Breton Wood Twins”?
[A] IBRD & IMF
[B] IDA & IFC
[C] IDA & MIGA
[D] IMF & IDA

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5. 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

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6. Which among the following is a correct impact of dear Money ?
[A] Borrowings become cheap
[B] Borrowings become expensive
[C] Borrowings become either cheap or expensive
[D] There is no impact of Dear Money on Borrowings

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7. Wage-price spirals are linked to which type of inflation?
[A] Demand-pull inflation
[B] Cost-push inflation
[C] Deflation
[D] Stagflation

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8. Cultural command area calculations are used in which of the following?
[A] Preparation of a Land Development Plan
[B] Designing an Irrigation Plan
[C] Prepare a plan for new crops introduction
[D] Design the agricultural policy

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9. Which among the following is correct representation of the Money Multiplier?
[A] Ratio of Broad Money (M3) to Reserved Money (M0) i.e. M3/M0
[B] Ratio of Broad Money (M3) to Narrow Money (M1) i.e. M3/M1
[C] Ratio of Narrow Money (M1) to Broad Money (M3) i.e. M1/M3
[D] Ratio of Narrow Money (M1) to Reserved Money (M0) i.e. M1/M0

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10. What is the objective of the Central Government in creating the “Non-lapsable Central Pool of Resources”?
[A] To provide development funding in Naxalite affected areas
[B] To provide additional development grant to most backward 200 districts all over country
[C] To provide time to time fiscal stimulation to the economy
[D] To provide development funding to North East and Sikkim

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