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 bank’s stock is excluded from Bank NIFTY as of February 2026?
[A] Bank of India
[B] Kotak Mahindra Bank
[C] Punjab National Bank
[D] Yes Bank
Show Answer
Correct Answer: A [Bank of India]
Notes:
Bank NIFTY is an index that includes 14 of the most liquid and large-cap Indian banking stocks as of February 2026. The constituents are HDFC Bank Ltd. (22.02%), ICICI Bank Ltd. (18.18%), State Bank of India (10.42%), Axis Bank Ltd. (10.05%), Kotak Mahindra Bank Ltd. (8.85%), Federal Bank Ltd. (5.02%), IndusInd Bank Ltd. (4.15%), Bank of Baroda (3.86%), IDFC First Bank Ltd. (3.78%), AU Small Finance Bank Ltd. (3.76%). Bank of India is excluded.
2. What is the full form of BOLT in infrastructure financing?
[A] Build, Operate, Lend, Transfer
[B] Build, Operate, Lease, Transfer
[C] Build, Observe, Lend, Transfer
[D] Build, Own, Lease, Transfer
Show Answer
Correct Answer: D [Build, Own, Lease, Transfer]
Notes:
BOLT stands for Build, Own, Lease, Transfer. In this model, a private entity constructs and owns the infrastructure facility, leases it to a government or public sector agency for an agreed period, and afterward transfers ownership to the public authority. The model was adopted to attract private investment in public infrastructure in India from the 1990s and is used in sectors like transportation and power.
3. In context with the currency management in India the responsibility for coinage vests with which of the following?
[A] Government of India
[B] Reserve Bank of India
[C] Currency Chests
[D] Commercial Banks
Show Answer
Correct Answer: A [Government of India]
Notes:
Government of India on the basis of the Coinage Act, 1906
4. If a commodity has more number of substitutes, the demand for this commodity will be _______?
[A] more elastic
[B] less elastic
[C] inelastic
[D] perfectly elastic
Show Answer
Correct Answer: A [more elastic]
Notes:
Substitute goods are those goods which can be used in place of each other. Examples of substitute goods are : tea and coffee; ghee and edible oil. In case of substitute goods like tea and coffee, demand for a commodity falls with a fall in the price of other substitute goods.
5. How many currencies are included in the BIS REER basket?
[A] 6
[B] 26
[C] 36
[D] 64
Show Answer
Correct Answer: D [64]
Notes:
The Bank for International Settlements (BIS) calculates the broad real effective exchange rate (REER) index using a basket of 64 currencies. The BIS methodology weights these currencies according to trade shares to reflect the competitiveness of a country in the global market. BIS also publishes narrower REER indices, like a 27-currency basket, but the broadest index uses 64 currencies.
6. Round-tripping refers to which of the following practices?
[A] Policy to boost FDI
[B] Means of tax evasion
[C] Policy of export promotion
[D] Calculation of National Income
Show Answer
Correct Answer: B [Means of tax evasion]
Notes:
Round-tripping is the practice of moving domestic funds to foreign jurisdictions and then reinvesting them in the original country to evade taxes or regulatory restrictions. Round-tripping is commonly linked to misuse of tax havens. In 2008, round-tripping was estimated to cause a global tax revenue loss of 8 billion to 27 billion. This practice is illegal in several countries, including India.
7. What does the labour force participation rate measure?
[A] The persons who are either employed or actively seeking work
[B] The persons who are employed only
[C] The persons capable to work but not seeking employment
[D] None of them
Show Answer
Correct Answer: A [The persons who are either employed or actively seeking work]
Notes:
The labour force participation rate measures the proportion of the working-age population that is either employed or actively seeking employment. It is calculated as the percentage of people aged 15 or above who are either working or looking for work. It does not include persons not actively searching for jobs. The rate is published by the Ministry of Labour and Employment in India.
8. Which agency releases the Index of Industrial Production in India?
[A] Central Statistical Office
[B] National Statistics Office
[C] Ministry of Commerce and Industry
[D] Competition Commission of India
Show Answer
Correct Answer: B [National Statistics Office]
Notes:
The Index of Industrial Production is compiled and published monthly by the National Statistics Office. The National Statistics Office operates under the Ministry of Statistics and Programme Implementation. The responsibility for IIP preparation was transferred from the Central Statistical Office to the NSO. The IIP covers mining, manufacturing, and electricity sectors and is released six weeks after each reference month.
9. The payment and settlement system in India is managed by_?
[A] SEBI
[B] RBI
[C] National Payments Corporation of India
[D] Ministry of Finance
Show Answer
Correct Answer: B [ RBI ]
Notes:
RBI manages the payment and settlement system in India.
10. Which of the following statements is not correct for economically underdeveloped countries? (UPSC Prelims 1987)
[A] Involvement of a very little proportion of labour in primary occupations
[B] Lower percentage of literacy
[C] Mass unemployment
[D] High birth rate
Show Answer
Correct Answer: A [Involvement of a very little proportion of labour in primary occupations]
Notes:
Primary jobs involve getting raw materials from the natural environment e.g. Mining, farming and fishing. There are a lot of people who are engaged in primary occupations in an economically underdeveloped country.
