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. In which of the following countries, International Rice Research center is Located?
[A] Thailand
[B] Malaysia
[C] Philippines
[D] Indonesia
Show Answer
Correct Answer: C [Philippines]
Notes:
The International Rice Research Institute (IRRI) is headquartered in Philippines and has operating offices in seventeen countries. The Institute was originally established in the yeat 1960. It aims to reduce poverty and hunger, improve the health of rice farmers and consumers.
2. Which is classified as an economic overhead?
[A] Hospitals
[B] Schools
[C] Sanitation facilities
[D] Road and Railways
Show Answer
Correct Answer: D [Road and Railways]
Notes:
Road and railways are economic overheads as they provide essential infrastructure for transportation and movement of goods, stimulating economic activity. Hospitals, schools, and sanitation are social overheads, catering mainly to health, education, and hygiene rather than direct economic productivity.
3. In which of the following the term “cap and trade” is used?
[A] Share Broking
[B] Mutual Fund Investments
[C] Emission Trading
[D] Commodity Futures
Show Answer
Correct Answer: C [Emission Trading]
Notes:
Emissions trading (aka. cap and trade) refers to the market-based approach to control pollution by providing economic incentives for reducing the emissions of pollutants.
4. In context with the Credit Card Business in India, a Hot card refers to ______?
[A] Low Interest Credit Card
[B] Unsolicited Credit Card
[C] Lost Credit Card
[D] Highly Promoted Credit Card
Show Answer
Correct Answer: C [Lost Credit Card]
Notes:
A “Hot card” in the context of credit cards in India refers to a “Lost Credit Card.” When a card is reported lost or stolen, it is immediately flagged as hot to prevent unauthorized transactions. This term is crucial for fraud prevention in the banking sector. In India, the Reserve Bank of India (RBI) mandates that banks must have robust systems to handle such cases efficiently.
5. The calculations of “Cultural command area ” are used in which among 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
Show Answer
Correct Answer: B [Designing an Irrigation Plan]
6. Which of the following correctly displays balance of trade?
[A] visible exports – visible imports
[B] total exports – total imports
[C] invisible imports – visible imports
[D] visible exports – invisible imports
Show Answer
Correct Answer: A [visible exports – visible imports]
Notes:
Balance of Trade: Difference of ONLY visibles Balance of Payments: Difference of visibles as well as invisibles
7. Which of the following are included in the Forex of India?
[A] Foreign Currency Assets
[B] SDRs
[C] Reserve Position in the IMF
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
The Foreign exchange reserves of India consists of below four categories: 1. Foreign Currency Assets 2. Gold 3. Special Drawing Rights (SDRs) 4. Reserve Tranche Position
8. Which of the following operations are undertaken by Small Finance Banks?
[A] Accepting Deposits
[B] Disbursing small loans
[C] Sell Insurance Products
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
The Small Finance Banks can accept deposits and lend to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities. It can also distribute mutual fund units, insurance products, pension products, etc. with the prior approval of the RBI.
9. Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if?
[A] Any of the borrowal account of the enterprise remains NPA for ten months or more
[B] Any of the borrowal account of the enterprise remains NPA for eight months or more
[C] Any of the borrowal account of the enterprise remains NPA for five months or more
[D] Any of the borrowal account of the enterprise remains NPA for three months or more
Show Answer
Correct Answer: D [Any of the borrowal account of the enterprise remains NPA for three months or more]
Notes:
Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if any of the borrowal account of the enterprise remains NPA for three months or more.
10. Who among the following is a banking corresponding agent?
[A] An authorized representative of bank who offer banking services in unbanked areas
[B] Any person who offer banking services in unbanked areas
[C] An authorized representative of bank who makes profits for banks
[D] None of the above
Show Answer
Correct Answer: A [An authorized representative of bank who offer banking services in unbanked areas]
Notes:
Business Correspondents are retail agents engaged by banks for providing banking services at locations other than a bank branch/ATM. BCs enable a bank to provide its limited range of banking services at low cost.
