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 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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2. Who among the following was the chairman of the expert committee which suggested “Consumption Expenditure” for identifying the BPL?
[A] Abhijit Sen
[B] C Rangrajan
[C] Kirit Parikh
[D] Suresh Tendulkar

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3. Euribor is associated with which of the following?
[A] An International Financial Company
[B] An association of European Financial Service providers
[C] A reference rate for Euro Money Market
[D] A credit rating agency of Europe

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4. Who benefits most from deflation in the short term?
[A] Salary earners with stable employment
[B] Pensioners with fixed incomes
[C] Equity holders
[D] Borrowers with long-term fixed-rate debt

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5. Which group is most adversely affected by competitive currency devaluation?
[A] Exporters
[B] Importers
[C] Traders
[D] Service Providers

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6. Which among the following is the chief characteristic of the primary industry of the developed countries?
[A] Larger farm size and increasing corporate ownership of farms
[B] Larger farm size and more government ownership of farms
[C] Smaller farm size and a diversity of crops on each farm
[D] Smaller farm size and fewer family-owned farms

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7. Which sector uses the largest share of natural gas produced in India?
[A] Fertilizers
[B] City Gas Distribution (Cooking Gas)
[C] Power Production
[D] Refineries

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8. The expenditure done by the government on the MGNREGA scheme comes under the:
1. Revenue expenditure
2. Capital Expenditure
3. Planned Expenditure
4. Non Planned expenditure
Choose the correct option from the codes given below:
[A] Only 1 & 3
[B] Only 1, 2 & 3
[C] Only 1 & 4
[D] Only 1, 2 & 4

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9. Which of the following exchange rates is the relative price of foreign goods in terms of domestic goods?
[A] Nominal
[B] Real
[C] Artificial
[D] Fixed

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10. Which of the following clearly define mixed economy?
[A] Co-existence of private and public sectors
[B] Co-existence of small and large scale industries
[C] Industries completely owned by the Government
[D] Control of means of production by the Government

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