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 was chosen as a unit of developing banking infrastructure in the Lead Bank Scheme?
[A] Town
[B] Village
[C] District
[D] Panchayat

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2. A Bank opened in Special Economic Zones in India comes under which among the following ?
[A] International Banking
[B] Domestic Banking
[C] Offshore Banking
[D] National banking

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3. Which among the following bank had issued first successful Credit Card of the world?
[A] Bank of America
[B] Standard Chartered Bank
[C] CitiBank
[D] ANZ Grindlays Bank

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4. The investment in Plant & Machinery up to which among the following amounts in India is called a Tiny Unit in India?
[A] Rs. 5 Lakh
[B] Rs. 10 Lakh
[C] Rs. 15 Lakh
[D] Rs. 25 Lakh

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5. Foreign Direct Investment(FDI) and Foreign Institutional Investment(FII) are distinct in terms of?
[A] FDI brings capital, technology & management and FII brings only capital
[B] FDI targets specific sectors and FII help in increasing foreign capital availability
[C] FII is considered more stable
[D] FII targets both primary and secondary market while FDI targets only primary.

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6. Which among the following is a correct definition of the “Inflationary gap”?
[A] The difference between total spending at full employment level and total spending above that level.
[B] The difference between the price of a product at a time and price of that product at some different time
[C] Difference between the national expenditure and total expenditure
[D] Difference between Estimated fiscal deficit and actual fiscal deficit

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7. The proposed Wholesale & Long-Term Finance Banks (WLTF):

  1. cannot accept saving deposits
  2. will raise fund by issuing rupee denominated bonds, locally as well as in abroad
  3. require to maintain 40 percent of their branches in rural areas

Which of the above statements is/are correct?

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

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8. Which among the following is not an instrument of fiscal policy?
[A] Taxation
[B] Public expenditure
[C] Public debt
[D] Credit Rationing

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9. Three communicable diseases prevalent in developing countries caused by unsafe drinking water and bad sanitation are?
[A] acute diarrhoea, cancer and gout
[B] malaria, acute diarrhoea and schistosomiasis
[C] onchocerciasis, leukaemia and arthritis
[D] rheumatism, malaria and AIDS

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10. Which of the following is the limitation of the Socialist Economic system?
[A] High Taxes
[B] Easy Mobilization of resources
[C] Concentration of wealth is prevented
[D] Market Monopoly doesn’t exist

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