Indian Economy MCQs

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Core Inflation is the rate of inflation calculated to exclude certain items that are subject to sudden and short-lived price movements, mainly food and energy. Core inflation is considered a better indicator of overall long-term than un-adjusted headline inflation.

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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.

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In 2026, oil production and hydrocarbon exports remain the main growth drivers for the MENA region, especially within GCC states. Despite efforts toward economic diversification in areas like AI and tourism, hydrocarbons still overwhelmingly contribute to real GDP growth and export revenues in the region.

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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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Commercial Paper is issued as an unsecured promissory note. It was first introduced in India in 1990. CPs have maturities ranging from 7 days to 1 year. Only companies with a high credit rating can issue CPs. The Reserve Bank of India regulates CP issuance. CPs are used for short-term funding needs by corporate bodies, primary dealers, and financial institutions.

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The Reserve Bank of India introduced the Market Stabilisation Scheme (MSS) in 2004. The RBI issues Treasury Bills and/or dated securities under MSS to absorb excess liquidity from the banking system. The funds raised are kept in a separate account and not used for government expenditure. The scheme helps manage surplus liquidity arising mainly from large capital inflows or currency management operations.

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Coastal headlands and islands of Peru, especially the Chincha Islands, are known for rich guano deposits. By 1250 CE, the Chincha Kingdom harvested seabird guano from these islands for agricultural fertilizer. Guano collection continued as a major economic activity through the colonial era. The Humboldt Current supports abundant seabird populations that produce the guano deposits.

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The first Bank with Limited Liability to be managed by Indian Board was Oudh Commercial Bank. It was established in 1881 at Faizabad. This bank failed in 1958. The first bank purely managed by Indians was Punjab National Bank, established in Lahore in 1895

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Regional Rural Banks (RRBs) require sponsorship in the Indian banking industry. They were established under the RRB Act of 1976 to provide credit and develop agriculture and rural infrastructure. Each RRB is sponsored by a commercial bank, which provides financial and managerial support. This sponsorship is crucial for their operations and stability, differentiating them from cooperative banks, local area banks, and private banks, which do not require such sponsorship.

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White colour forms are for Resident Indian, and blue colour forms are for NRIs, Foreign Venture Capital, Investor, and Foreign Institutional Investors. These forms are issued by SEBI for investment in capital market.