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. Which RBI action is a qualitative credit control instrument?
[A] RBI increases Reverse Repo rate in quarterly policy review
[B] RBI decreases the CRR rate in quarterly policy review
[C] RBI decreases the Bank rate in quarterly policy review
[D] RBI announces selective credit control in quarterly policy review

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2. Which combination can increase the deposit component of money supply?
[A] Increasing reserve requirements / decreasing volume of reserves
[B] Lowering reserve requirements / increasing volume of reserves
[C] Lowering reserve requirements / decreasing volume of reserves
[D] Increasing reserve requirements / increasing volume of reserves

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3. The government has responsibility to ensure availability of which among the following to all consumers regardless of their ability to pay price?
[A] Giffen Goods
[B] Supplementary Goods
[C] Merit Goods
[D] Complementary Goods

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4. If the people prefer to keep cash with them rather than deposits, which among the following impacts will be seen on the Money Supply of the country?
[A] The money supply of the country will increase
[B] The money supply of the country will decrease
[C] The money supply of the country will not change
[D] The money supply of the country may increase or decrease

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5. Which of the following took birth from the Marrakech Agreement?
[A] World Economic Forum
[B] World Trade organization
[C] OPEC
[D] G-20

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6. National Social Assistance programme was initially rolled out in which of the following five year plans?
[A] Fifth Five Year Plan
[B] Sixth Five Year Plan
[C] Seventh Five Year Plan
[D] Eighth Five Year Plan

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7. Which statement about India’s banking sector is incorrect?
[A] Foreign Banks are Scheduled Commercial Banks.
[B] Banks may set their Savings Deposit interest rates.
[C] Scheduled Banks get loans at RBI bank rate.
[D] Non-Scheduled Banks must keep cash reserve with RBI.

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8. The term “Open Unemployment” is used when:
[A] people are not willing to work
[B] people are willing but not get work
[C] people leave their jobs in search of better ones
[D] people get the jobs but no regular payments

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9. The Consumer Welfare Fund is mainly financed through which source?
[A] Excise duty on manufactured goods
[B] Mandatory business contributions
[C] Unclaimed duty refunds and unused indirect tax
[D] Voluntary consumer donations

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10. Which agency releases the Index of Industrial Production in India?
[A] Central Statistical Office
[B] National Statistics Office
[C] Ministry of Commerce and Industry
[D] Competition Commission of India

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