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 systematic record of all economic transactions completed between residents of a country and the rest of the world in a year is known as..?
[A] Net Capital Flow
[B] Balance of Payment
[C] Balance of Trade
[D] Absolute Flow

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2. Through open market operations , RBI plays a very important role in which of the following markets?
[A] Gilt edged market
[B] Primary market
[C] Secondary market
[D] None of the above

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3. A Non-Resident Indian wants to get approval under Government Route for FDI in ‘Single Brand’ product retailing in India. Which among the following would be the appropriate agency to approach for this application?
[A] Regional Office of Reserve Bank of India
[B] Head Office of Reserve Bank of India
[C] Department of Economic Affairs (Ministry of Finance)
[D] Department of Industrial Policy and Promotion (Ministry of Commerce)

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4. What happens when a foreign bank operating in India does not meet its priority sector targets?
[A] It can deposit amount equivalent to the shortfall in Rural Infrastructure Development Fund
[B] It can deposit amount equivalent to the shortfall in SIDBI
[C] It can deposit amount equivalent to the shortfall in RBI
[D] It can lend amount equivalent to the shortfall to domestic banks

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5. Consider the following statements:
1. In comparison to other products, stocks markets offer higher returns and pose higher risks
2. Stock prices are governed by supply and demand
Which among the above is / are correct statements?
[A] Only 1
[B] Only 2
[C] Both 1 & 2
[D] Neither 1 nor 2

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6. Consider the following reports:

  1. Global Innovation Index
  2. Global Competitiveness Index
  3. Ease of doing business index

Which of the above is/are published by the World Bank?

[A] 2 & 3 Only
[B] 3 Only
[C] 1, 2 & 3
[D] None

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7. Which of the following are used as tool for the Liquidity adjustment facility (LAF)?

  1. Repo Rate
  2. Reverse Repo Rate
  3. Cash Reserve Ratio
  4. Statutory liquidity ratio

Select the correct option from codes given below:

[A] 1 & 2 Only
[B] 3 & 4 Only
[C] 1, 2 & 3 Only
[D] 1, 2, 3 & 4

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8. National Housing Bank is wholly owned by which of the following institutions?
[A] RBI
[B] SEBI
[C] SBI
[D] None of the Above

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9. Where are the Headquarters of New Development Bank situated?
[A] Manila (Philippines)
[B] Shanghai (China)
[C] New Delhi (India)
[D] Beijing (China)

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10. Which of the following is the distribution of the burden of paying a tax?
[A] Sharing of tax burden
[B] Shifting of the tax
[C] Incidence of a tax
[D] Tax capitalization

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