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. Approximately what fraction of India’s rubber is produced by Kerala?
[A] 60%
[B] 70%
[C] 80%
[D] 90%
Show Answer
Correct Answer: D [90%]
Notes:
Kerala produces approximately 90% of India’s rubber. The state has a tropical climate ideal for rubber cultivation, and it is home to vast rubber plantations. Rubber was introduced to India in the late 19th century, and Kerala has since become the leading producer, importantly contributing to the state’s economy.
2. If a person is not satisfied with the decision passed by the Banking Ombudsman, he/ she can approach the appellate authority against the Banking Ombudsmen’s decision. The Appellate Authority is vested in which among the following?
[A] Managing Director of the Concerned Bank
[B] Governor of Reserve Bank of India
[C] Deputy Governor of Reserve Bank of India
[D] High Court of the state in which Bank Branch is located
Show Answer
Correct Answer: C [Deputy Governor of Reserve Bank of India]
Notes:
The correct answer is “Deputy Governor of Reserve Bank of India.” The Banking Ombudsman Scheme, established under the Reserve Bank of India (RBI), allows customers to appeal Ombudsman decisions to the Deputy Governor. This mechanism ensures a higher level of oversight and accountability in banking disputes. The Ombudsman scheme was introduced in 1995 to provide a cost-effective and efficient grievance redressal system for bank customers.
3. Which of the following fertilizers has highest nitrogen content?
[A] Calcium Nitrate
[B] Anhydrous Ammonia
[C] Urea
[D] Ammonium Nitrate
Show Answer
Correct Answer: B [ Anhydrous Ammonia]
Notes:
Anhydrous Ammonia is a gaseous fertilizer with NPK ratio 82-00-00. Urea has 46-00-00. Among solid fertilizers, Urea has maximum N content.
4. Which among the following economic activities would contribute in increasing the deficit in current account?
1. Outsourcing of Goods
2. Outsourcing of services
3. Increase in domestic tourism
4. Increase in foreign tourist arrival
Select the correct option from the codes given below:
[A] Only 1
[B] Only 1 & 2
[C] Only 1, 2 & 3
[D] Only 1, 2 & 4
Show Answer
Correct Answer: B [ Only 1 & 2 ]
Notes:
The correct answer is “Only 1 & 2.” 1. Outsourcing of Goods (1): This leads to an increase in imports, which negatively impacts the current account balance. 2. Outsourcing of Services (2): Similar to goods, outsourcing services results in payments to foreign entities, increasing the current account deficit. 3. Increase in Domestic Tourism (3): This does not affect the current account negatively, as it involves spending within the country. 4. Increase in Foreign Tourist Arrival (4): This positively impacts the current account by bringing in foreign currency. Trivia: The current account is a key component of a country’s balance of payments, reflecting trade in goods and services, income, and current transfers.
5. Consider the following places:
- Mumbai
- Hyderabad
- Kolkata
- Noida
Which of the above are known for coin minting in India?
[A] 1, 2 & 3 Only
[B] 2 & 4 Only
[C] 2, 3 & 4 Only
[D] 1, 2, 3 & 4
Show Answer
Correct Answer: D [ 1, 2, 3 & 4 ]
Notes:
SPMCIL comprises four mints: India Government Mint in Mumbai, Hyderabad, Kolkata and Noida.
6. The Financial Action Task Force (FATF) is an initiative of:
[A] SAARC
[B] IMF
[C] BRICS
[D] G7 countries
Show Answer
Correct Answer: D [ G7 countries ]
Notes:
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Member of G7. The FATF has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction. Group of 7 (G7) is a group consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
7. Who among the following advocated the adoption of ‘ PURA’ model to eradicate rural poverty?
[A] Dr. A.P.J. Abdul Kalam
[B] Sri Abhijit Sen
[C] Moulana Abdul Kalam Azad
[D] Prof. A.M. Patha
Show Answer
Correct Answer: A [Dr. A.P.J. Abdul Kalam]
Notes:
PURA model to eradicate rural poverty was advocated by Dr. A.P.J. Abdul Kalam, theformer president of India. In PURA model (Provision of urban amenities to rural areas) he discussed about the development of the rural development in India.
8. Which is the longest irrigation canal in India?
[A] East Kosi Canal
[B] Sir hind Canal
[C] Yamuna Canal
[D] Indira Gandhi Canal
Show Answer
Correct Answer: D [Indira Gandhi Canal]
Notes:
The Indira Gandhi Canal is the longest irrigation canal of India. It starts from the Harike Barrage at Harike, a few kilometers below the confluence of the Satluj and Beas rivers in the Indian state of Punjab and terminates in irrigation facilities in the Thar Desert in the north west of Rajasthan state.
9. Which of the following curves represents the demand of all consumers in the market taken together at different levels of the price of the good?
[A] Monotonic
[B] Indifferent
[C] Market demand
[D] Diminishing
Show Answer
Correct Answer: C [Market demand]
Notes:
The market demand curve is the summation of all the individual demand curves in a given market. It shows the quantity demanded of the good by all individuals at varying price points.
10. Micro credit or micro finance is a novel approach to bank with the poor. In this approach bank credit is extended to the poor through which of the follwing?
[A] Self Help Groups
[B] Anganwadees
[C] Co-operative Credit Societies
[D] RBI
Show Answer
Correct Answer: A [Self Help Groups]
Notes:
Microfinance is a category of financial services targeted at individuals and small businesses who lack access to conventional banking and related services.
