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 among the following revolutions is related to ‘fertilizers’?
[A] Silver Revolution
[B] Grey Revolution
[C] Golden Revolution
[D] Pink Revolution
Show Answer
Correct Answer: B [Grey Revolution]
Notes:
Green Revolution- Food grains,
White Revolution Milk,
Yellow Revolution-Oil seeds,
Blue Revolution-Fisheries
Golden Revolution-Fruits;
Silver Revolution-Eggs,
Round Revolution Potato,
Pink Revolution-Meat,
Grey Revolution (Fertilizers)
2. What is the relationship between ‘Dear money’ & ‘Cheap money’ in Economics Terminology?
[A] Both of the terms are synonyms
[B] Both of them are antonyms
[C] They are unrelated in terms of their meaning
[D] Dear Money is white Money , cheap money is black money
Show Answer
Correct Answer: B [Both of them are antonyms]
Notes:
Dear money is available at exceptionally high rate of interest and cheap money is available at very low rates
3. In which of the five year plan in India, the concept of Financial Inclusion was included for the first time?
[A] 8th Five Year Plan
[B] 9th Five Year Plan
[C] 10th Five Year Plan
[D] 11th Five Year Plan
Show Answer
Correct Answer: D [11th Five Year Plan]
Notes:
The 11th Five Year Plan was implemented from 2007-2012, when Manmohan Sigh was India’s Prime Minster. The main slogan for the 11th FYP was “Faster and more inclusive growth”. The 11th FYP made special emphasis on Financial Inclusion, poverty reduction, empowerment through education and skill development etc.
4. Which among the following bodies in India protects the interests of consumers against anti-competitive practices of market entities?
[A] National Consumer Forum
[B] Competition Commission of India
[C] National Consumer Disputes Redressal Commission
[D] Central Vigilance Commission
Show Answer
Correct Answer: B [Competition Commission of India]
Notes:
The Competition Commission of India (CCI) is the statutory body responsible for preventing practices that have an adverse effect on competition in India. It enforces the Competition Act, 2002 and works to promote fair competition, protect consumer interests and ensure freedom of trade in markets. It is a quasi-judicial authority and the correct choice among the given options. The consumer forums and the Central Vigilance Commission do not perform this competition-regulation function.
5. What do we call an arrangement whereby an issuing Bank at the request of the Importer (Buyer) undertakes to make payment to the exporter (Beneficiary) against stipulated documents?
[A] Bill of Exchange
[B] Letter of Exchange
[C] Letter of Credit
[D] Bill of Entry
Show Answer
Correct Answer: C [Letter of Credit]
Notes:
The correct answer is “Letter of Credit.” A Letter of Credit (LC) is a financial document issued by a bank that guarantees payment to the exporter upon presentation of specified documents, such as shipping and insurance documents. This arrangement reduces risk for both parties in international trade, ensuring that the exporter receives payment and the importer receives the goods. LCs are widely used in global commerce, with the first recorded use dating back to the 12th century in the Mediterranean trade.
6. What is vertical farming?
[A] Growing unrelated crops together in the same tract of land
[B] Growing related crops together in the same tract of land
[C] Cultivating crops inside multi-storey buildings
[D] Using aquaculture, sericulture, pisciculture, and bee culture together
Show Answer
Correct Answer: C [Cultivating crops inside multi-storey buildings]
Notes:
Vertical farming uses multi-storey buildings to grow crops in urban environments. The method utilizes hydroponics or aeroponics. This allows for agriculture independent from soil and weather conditions. The technique optimizes space and supports year-round production. Commercial vertical farms have been established in countries such as Japan, Singapore, and the United States since the early 2000s.
7. The Prestigious Buddhavanam Project is a tourism project of which state government?
[A] Bihar
[B] Maharashtra
[C] Telangana
[D] Sikkim
Show Answer
Correct Answer: C [Telangana]
Notes:
Buddhavanam Project is a tourism project of Telangana state government. It is located in Nagarjunasagar dam region of Nalgonda district in Telangana. It is a Buddhist heritage theme park of the Telangana State Tourism Development Corporation. The project was recently in news when Queen Mother of Bhutan and president of Tarayana Foundation Ashi Dorji Wangmo Wangchuck and Princess Sonam Dechan Wangchuck, along with a seven-member delegation, visited the Buddhavanam project.
8. Which one of the following is NOT generally considered a sign of economic development?
[A] Changing structure of GDP in favour of industry and services
[B] Larger share of GDP coming from the primary sector
[C] Improved infrastructure and institutional changes in an economy
[D] Rising per capita income and productivity
Show Answer
Correct Answer: B [Larger share of GDP coming from the primary sector]
Notes:
Economic development is usually associated with structural transformation: the share of agriculture/primary sector declines, while industry and services expand. It is also reflected in better institutions, infrastructure, higher productivity and rising per capita income. A larger GDP share from the primary sector generally indicates a less developed economic structure.
9. RBI’s intervention to influence the exchange rate is known as what in India?
[A] Dirty Floats
[B] Managed Floats
[C] Fixed Floats
[D] Market Stabilization Floats
Show Answer
Correct Answer: B [Managed Floats]
Notes:
India has used a managed floating exchange rate regime since 1993. The Reserve Bank of India intervenes in the foreign exchange market to reduce excessive volatility. The exchange rate is mainly market-determined but subject to RBI intervention. The International Monetary Fund describes India’s regime as a managed float. RBI does not follow a fully fixed or fully floating rate policy.
10. The report of Vijay Kelkar committee is related to which of the following?
[A] Trade Reforms
[B] Centre-State Financial Relations
[C] Disinvestment in Public Sector Enterprises
[D] Tax Reforms
Show Answer
Correct Answer: D [Tax Reforms]
Notes:
Impetus to direct tax reforms in India, came with the recommendations of the Task Force on Direct & Indirect Taxes under the chairmanship of Vijay Kelkar in 2002. The main recommendations of this task force related to the direct taxes related to increasing the income tax exemption limit, rationalization of exemptions, abolition of long term capital gains tax, abolition of wealth tax etc.
