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. A persistent fall in the general price level of goods and services is known as __:
[A] Deflation
[B] Disinflation
[C] Stagflation
[D] Depression
Show Answer
Correct Answer: A [ Deflation ]
Notes:
Inflation refers to rise in general price level of goods and services, deflation is fall in general price level of goods and services. Deflation is inflation in negative zone, i.e. a decrease in the general price level of goods and services.
2. In which five year plan self-reliance as an object of planning was emphasized?
[A] First Five Year Plan
[B] Second Five Year Plan
[C] Third Five Year Plan
[D] Fourth Five Year Plan
Show Answer
Correct Answer: D [Fourth Five Year Plan]
Notes:
The Fourth Five-year plan was implemented during 1969 to 1974 in India. The plan has twin objectives of “Growth with stability” and “progressive achievement of self-reliance”. It focused on the growth rate of Agriculture.
3. Which among the following is the main feature of Democratic planning?
[A] Inducement
[B] Government
[C] Direction
[D] Flexibility
Show Answer
Correct Answer: D [Flexibility]
Notes:
Democratic planning is the planning process generally adopted in mixed economy. Mixed economy possesses characteristics of both capitalist economy as well as socialist economy. Democratic planning involves participation of all the citizens of an economy directly or indirectly.
4. Which authority regulates violations in foreign currency convertible bonds in India?
[A] Securities and Exchange Board of India (SEBI)
[B] Reserve Bank of India (RBI)
[C] Foreign Investment Promotion Board (FIPB)
[D] Bombay Stock Exchange (BSE)
Show Answer
Correct Answer: B [Reserve Bank of India (RBI)]
Notes:
The Reserve Bank of India (RBI) regulates FCCBs under the External Commercial Borrowings (ECB) framework and the Foreign Exchange Management Act (FEMA). RBI issues guidelines on FCCBs, sets minimum maturity periods, and monitors compliance with foreign exchange regulations. SEBI regulates securities markets but does not regulate FCCB violations. FIPB was abolished in 2017. Bombay Stock Exchange acts as an exchange, not a regulator.
5. What was the nationality of Mahbub ul Haq, one of the pioneers of Human development theory and co-founder of the Human Development Report?
[A] Uk
[B] USA
[C] Pakistan
[D] India
Show Answer
Correct Answer: C [Pakistan]
Notes:
Human Development Report was first launched in 1990 by the Pakistani Economist Mahbub ul Haq and Indian Nobel laureate Amartya Sen.
6. Which is the biggest borrower in India?
[A] Indian Government
[B] Reserve Bank of India
[C] Indian Railways
[D] State Governments
Show Answer
Correct Answer: A [Indian Government]
Notes:
The Indian central government projected total debt is ₹214.82 lakh crore by March 2027. In FY 2026-27, the government plans to borrow ₹17.2 lakh crore through gross market borrowings. Net market borrowings are projected at ₹11.7 lakh crore. Reserve Bank of India mainly conducts monetary operations and does not borrow such amounts. State governments’ borrowings are lower than the Centre.
7. Who is the appellate authority after a Banking Ombudsman’s decision?
[A] Governor of RBI
[B] Executive Director of RBI
[C] RBI Local Boards
[D] Chairman of the concerned Bank
Show Answer
Correct Answer: B [Executive Director of RBI]
Notes:
Under the Reserve Bank – Integrated Ombudsman Scheme, 2021, the Executive Director in charge of the Consumer Education and Protection Department of RBI is the appellate authority for appeals against Banking Ombudsman decisions. Appeals must be filed within 30 days through the RBI portal or email. Previous schemes listed the Deputy Governor, but the current scheme specifies the Executive Director.
8. Which of the following took birth from the Marrakech Agreement?
[A] World Economic Forum
[B] World Trade organization
[C] OPEC
[D] G-20
Show Answer
Correct Answer: B [World Trade organization]
Notes:
The Marrakesh Agreement, manifested by the Marrakesh Declaration, was an agreement signed in Marrakesh, Morocco, by 123 nations on 15 April 1994, marking the culmination of the 8-year-long Uruguay Round and establishing the World Trade Organization, which officially came into being on 1 January 1995.
9. Who among these is thought of as a Pioneer of Economic Nationalism?
[A] Madan Mohan Malviya
[B] R.C. Dutt
[C] Bipin Chandra Pal
[D] G.K. Gokhale
Show Answer
Correct Answer: B [R.C. Dutt]
Notes:
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.
10. Consider the following statements regarding the “PRASAD” scheme:
- It focuses on the development and rejuvenation of identified pilgrimage destinations and heritage cities.
- Under the scheme, the Ministry of Tourism provides Central Financial Assistance (CFA) to State Governments/Union Territory Administrations for tourism projects.
- As per the most recent data, 54 projects have been sanctioned under the scheme across 28 States/UTs.
Which of the above statements is/are correct?
[A] Only 1 and 2
[B] Only 2 and 3
[C] Only 1 and 3
[D] 1, 2 and 3
Show Answer
Correct Answer: D [1, 2 and 3]
Notes:
The PRASAD scheme, launched by the Ministry of Tourism in 2014-15, stands for Pilgrimage Rejuvenation and Spiritual Augmentation Drive. Statement 1 is correct: it targets pilgrimage and heritage city development. Statement 2 is correct: the ministry provides Central Financial Assistance. Statement 3 is correct: 54 projects in 28 States/UTs have been sanctioned under the scheme as per latest data.
