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 among the following bodies estimates the national income of India?
[A] Office of the Economic Advisor
[B] Ministry of Statistics
[C] Central Statistical Office
[D] Ministry of Finance
Show Answer
Correct Answer: C [Central Statistical Office]
Notes:
The Central Statistics Office (CSO) is a governmental agency in India under the Ministry of Statistics and Programme Implementation. It is responsible for estimating National Income, Index of Industrial Production and Consumer Price Indices.
2. Highest percentage of nitrogen is found in which among the following fertilizers among the given options?
[A] Calcium ammonium nitrate
[B] Ammonium nitrate
[C] Calcium nitrate
[D] Urea
Show Answer
Correct Answer: D [Urea]
Notes:
The agricultural industry widely uses urea, a white crystalline solid containing 46 percent nitrogen as an animal feed additive and fertilizer. Urea has the highest nitrogen content of all solid fertilizers at 46% N.
3. A mutual fund that invests in other mutual funds belonging to the same fund house or belonging to other fund houses is called ?
[A] FOF Fund of Funds
[B] Pool
[C] Portfolio
[D] None of the above
Show Answer
Correct Answer: A [FOF Fund of Funds]
Notes:
A fund of funds (FOF) is a f mutual fund that invests in other types of funds or hedge funds. It is also called as a multi-manager investment. Their advantages are broad diversification and appropriate asset allocation.
4. Which of the following is not a measure to control inflation adopted by the Government or RBI?
[A] Monetary Policy
[B] Fiscal Policy
[C] Financial Inclusion
[D] Price Control
Show Answer
Correct Answer: C [Financial Inclusion]
Notes:
Financial inclusion is not a direct measure to control inflation. Monetary policy involves adjusting interest rates and money supply, while fiscal policy includes government spending and taxation strategies. Price control refers to setting price limits on goods to manage inflation. Financial inclusion aims to provide access to financial services, which can support economic growth but does not directly address inflation control.
5. National Social Assistance programme was initially rolled out in which of the following five year plans?
[A] Fifth Five Year Plan
[B] Sixth Five Year Plan
[C] Seventh Five Year Plan
[D] Eighth Five Year Plan
Show Answer
Correct Answer: D [Eighth Five Year Plan]
Notes:
The National Social Assistance Programme was launched in 1995 during 8th five year plan as a Centrally Sponsored Scheme of the Government of India. The scheme provides financial assistance to the elderly, widows and persons with disabilities in the form of social pensions.
6. Which among the following finds highest weight age in the Index of Industrial Production?
[A] Electricity
[B] Steel Industry
[C] Refinery Products
[D] Coal
Show Answer
Correct Answer: C [Refinery Products]
Notes:
The Refinery products industry has the highest weight of 28.04% in the IIP. Steel industry has the second highest weightage of 17.92%. Electricity has a weight of 19.85%, which is the third highest.
7. A Non-Resident Indian wants to get approval under Government Route for FDI in ‘Single Brand’ product retailing in India. Which among the following would be the appropriate agency to approach for this application?
[A] Regional Office of Reserve Bank of India
[B] Head Office of Reserve Bank of India
[C] Department of Economic Affairs (Ministry of Finance)
[D] Department of Industrial Policy and Promotion (Ministry of Commerce)
Show Answer
Correct Answer: D [Department of Industrial Policy and Promotion (Ministry of Commerce)]
Notes:
The correct agency to approach for FDI approval in ‘Single Brand’ retailing in India is the Department of Industrial Policy and Promotion (DIPP), now part of the Ministry of Commerce and Industry. This department is responsible for formulating and implementing policies related to foreign direct investment, including approvals for single brand retail, which allows foreign companies to operate retail stores in India under a single brand. The DIPP ensures compliance with the Foreign Exchange Management Act (FEMA) and other regulations.
8. Which among the following is the short name of highest authority in India for Indirect Taxes?
[A] CBED
[B] CBDT
[C] CBEC
[D] CBIT
Show Answer
Correct Answer: C [CBEC]
Notes:
Central Board of Excise and Customs (CBEC)
9. National Small Savings Fund is a part of which among the following?
[A] Consolidated Fund of India
[B] Public Account of India
[C] Contingency Fund of India
[D] Prime Minister’s Relief Fund
Show Answer
Correct Answer: B [Public Account of India]
Notes:
The National Small Savings Fund (NSSF) is part of the Public Account of India. The Public Account includes funds that the government holds on behalf of others, such as small savings schemes, provident funds, and other deposits. The NSSF primarily manages the savings from various small savings schemes like the Public Provident Fund (PPF) and the National Savings Certificate (NSC). These funds are used for financing government projects and development activities.
10. The green shoe option is a clause in the underwriting agreement of an IPO, which allows to ___?
[A] Sell additional shares
[B] Record Investor demands
[C] Purchase the shares back from Investors
[D] None of them
Show Answer
Correct Answer: A [ Sell additional shares ]
Notes:
The green shoe option is a clause in the underwriting agreement of an IPO, which allows to sell additional shares, usually 15%, to the public if the demand exceeds expectations and the stock trades above its offering price. This option, also known as the over-allotment provision. It gets its name from the Green Shoe company, which was the first company to allow such an option.
