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 state led sugarcane production in India in 2023–24?
[A] Uttar Pradesh
[B] Maharashtra
[C] Tamil Nadu
[D] Andhra Pradesh

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2. Which among the following ratios correctly denotes Money Multiplier?
[A] M3: M0
[B] M1: M3
[C] M3: M1
[D] M1: M0

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3. In which Five Year Plan was the Khadi and Village Industries Commission launched?
[A] First
[B] Second
[C] Third
[D] Fourth

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4. If the people prefer to keep cash with them rather than deposits, which among the following impacts will be seen on the Money Supply of the country?
[A] The money supply of the country will increase
[B] The money supply of the country will decrease
[C] The money supply of the country will not change
[D] The money supply of the country may increase or decrease

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5. Which of the following took birth from the Marrakech Agreement?
[A] World Economic Forum
[B] World Trade organization
[C] OPEC
[D] G-20

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6. Consider the following:

  1. Allotting of the shares of net proceeds of taxes
  2. Laying down principles governing grants in aid
  3. Looking into the financial relations between the central government and the state Governments

The above mentioned functions are carried out by which among the following?

[A] Cabinet Committee on Economic Affairs
[B] National Development Council
[C] Finance Commission
[D] NITI Aayog

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7. Consider the following tools used by central banks to influence monetary conditions:

  1. Reverse Repo Rate
  2. Cash Reserve Ratio
  3. Statutory Liquidity Ratio
  4. Bank Rate

An increase in which among the above could raise interest rates in the market?

[A] Only 1 and 2
[B] Only 1
[C] 1, 2, 3 and 4
[D] 1, 2 and 3

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8. What is the investment limit for a micro enterprise under MSME classification in India?
[A] Rs. 1 crore
[B] Rs. 5 crore
[C] Rs. 10 crore
[D] Rs. 25 crore

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9. Which is NOT an anti-inflationary measure by the central bank?
[A] Raising the Bank Rates
[B] Raising Reserve Ratio Requirements
[C] Rationing of Credit
[D] Purchase of securities in Open Markets

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10. Consider the following economic activities:

  1. Outsourcing of goods production to foreign countries
  2. Outsourcing of services to foreign countries
  3. Increase in domestic tourism spending
  4. Increase in foreign tourist arrivals

Which of the above activities would contribute to increasing the deficit in a country's current account?

[A] Only 1
[B] Only 1 and 2
[C] 1, 2 and 3
[D] 1, 2 and 4

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