Indian Economy MCQs

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The World Economic Forum published the Travel and Tourism Development Index 2024. India was ranked 39th among 119 countries in this index. The index measures factors supporting tourism development globally. India’s position improved over previous years. The Travel and Tourism Development Index is released every two years.

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The Index of Eight Core Industries includes Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity. Pharmaceuticals are not included in this index. The Index serves as an indicator for measuring the industrial performance in India, and is released monthly by the Ministry of Commerce and Industry since 2004.

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Sikkim produces about 80% of India’s large cardamom. It is grown mainly in the Himalayan region of Sikkim due to the favorable climate and altitude. Sikkim’s production reached approximately 5.591 thousand tonnes in 2025. The government initiative “Mero Alaichi, Mero Dhan” supports cardamom cultivation in Sikkim. Assam, Gujarat, and Kerala do not match Sikkim’s output in this crop.

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Government spending refers to the money spent by the government or public sector on the acquisition of goods and services such as education, healthcare, social protection, defence etc. It does not come under monetary policy.

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The Reserve Bank of India uses the Cash Reserve Ratio under the Reserve Bank of India Act, 1934. CRR is the percentage of total deposits that banks must keep as reserves with RBI in cash only. An increase in CRR immediately reduces available funds for banks to lend. RBI reviews and announces CRR regularly in its monetary policy statements.

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The Seed Crop Insurance scheme was launched in India as a pilot in the financial year 2000-2001. It covered selected districts in 11 major seed-producing states. The scheme aimed to provide insurance protection to certified seed growers against crop loss due to natural calamities and pests. The program targeted crops produced for certified seed purposes, not regular grain crops.

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The Public Debt Office was established in 1946 as a part of the Reserve Bank of India. It manages government securities and public debt on behalf of the Government of India. The office handles the issue, interest payment, repayment, and transfer of government securities. The PDO operates in major RBI regional offices to support central and state governments in debt management operations.

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Romesh Chunder Dutt was an Indian civil servant and a famous economic historian of the nineteenth century. He entered the Indian Civil Service in the year 1871. He is also called as the Pioneer of Economic Nationalism.

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The Reserve Bank of India purchases government securities in open market operations to increase liquidity in the banking system. Increased liquidity leads to higher money supply in the economy. Higher money supply may lower interest rates and promote borrowing. This process is utilized to support economic growth and is considered an expansionary monetary policy. Open market purchase of securities is not used to control inflation.

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M3 consists of currency with the public, demand deposits, and time deposits with banks. The Reserve Bank of India identifies M3 as broad money. Since 1977, the RBI uses M3 as the main monetary aggregate. The RBI publishes weekly data on M3 in its statistical supplements as of 2023.