Indian Economy MCQs

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Transfer payments made by the Government including subsidies, government aid, social security assistance such as health insurance payment and scholarship are not included in the national income. Because they do not represent any economic activity.

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Disinflation means the decrease in the rate of inflation. It is a slowdown in the rate of increase of price levels of goods and services. This is different from deflation, in the way that Disinflation is only a marginal and short term decrease in rate of inflation.

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The correct answer is “Lowering reserve requirements / increasing volume of reserves”, because lowering reserve requirements allows banks to lend a larger proportion of their deposits, thereby increasing the money multiplier, while increasing the volume of reserves gives banks more funds to create loans and deposits; together, these actions expand the deposit component of the money supply.

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The Appellate Authority under the Integrated Ombudsman Scheme is the Executive Director-in-charge of the Consumer Education and Protection Department of RBI. This designation replaced the earlier Deputy Governor role in the 2021 updated scheme. Appeals must be submitted within 30 days of the Ombudsman decision. The scheme is governed by the Reserve Bank of India under the Banking Regulation Act, 1949.

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Bio-fertilizers such as Rhizobium, Azotobacter, Azospirillum and blue green algae (BGA) have been in use a long time. Anabaena, a blue green alga in association with water fern Azolla contributes nitrogen and also enriches soils with organic matter.

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Narrow money is the most liquid part of the money supply because the demand deposits can be withdrawn anytime during the banking hours. Time deposits on the other hand have a fixed maturity period and hence can not be withdrawn before expiry of this period. When we add the time despots into the narrow money, we get the broad money, which is denoted by M3. M3 = Narrow money + Time Deposits of public with banks Here, you must note that Broad money does not include the interbank deposits such as deposits of banks with RBI or other banks. At the same time, time deposits of public with all banks including the cooperative banks are included in the Broad Money. When you add the Post Office Savings money also into the M3, it becomes M4.

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According to the Economic Survey 2025-26, India’s services sector contributed 56.4% to Gross Value Added in FY25. Services exports reached USD 387.5 billion in FY25. The Survey reports that expanding digital infrastructure and high-speed connectivity is essential for supporting digitally delivered services. Government focus is on scaling infrastructure, with projected data center capacity of 8 GW by 2030. Digital enablement is highlighted as critical for sectoral growth.

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The Global Innovation Index is published by WIPO with partners, the Global Competitiveness Index by the World Economic Forum, and only the Ease of Doing Business Index is published by the World Bank Group. Thus, among the options, only the third report is published by the World Bank. The other two are not associated with the World Bank.

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The Doha Round negotiations collapsed in July 2008 over disagreements regarding the special safeguard mechanism (SSM) for developing countries in agriculture. The SSM was meant to allow developing nations to raise tariffs temporarily in response to import surges. India and China sought more flexibility, which the United States and others opposed, leading to a breakdown.

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State-owned energy major National Thermal Power Corporation (NTPC) raised almost Rs 2,000 crores with the launch of its ‘Green Masala Bond’ on the London Stock Exchange (LSE). NTPC’s bond issue has been described as the first-ever Indian quasi-sovereign to issue a Masala Bond.