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. As a wholly owned subsidiary of which of the following, the Small Industries Development Bank of India (SIDBI) was started in 1990?
[A] Industrial Investment bank of India Ltd
[B] Industrial Finance Corporation of India
[C] Industrial Development Bank of India
[D] Reserve Bank of India

Show Answer

2. Economic Planning comes under which of the following lists ?
[A] Union List
[B] Concurrent list
[C] State List
[D] None of them

Show Answer

3. Which among the following are the features of Exchange Earners’ Foreign Currency Accounts:

  1. They are opened with RBI
  2. They Earn interests on deposits
  3. They need a minimum balance to be maintained by the account holder

Choose the correct options:

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

Show Answer

4. Which among the following is correct representation of the Money Multiplier?
[A] Ratio of Broad Money (M3) to Reserved Money (M0) i.e. M3/M0
[B] Ratio of Broad Money (M3) to Narrow Money (M1) i.e. M3/M1
[C] Ratio of Narrow Money (M1) to Broad Money (M3) i.e. M1/M3
[D] Ratio of Narrow Money (M1) to Reserved Money (M0) i.e. M1/M0

Show Answer

5. Which among the following is the guiding principle of the concept of most favoured nations?
[A] that every nation has a preferred trading partner
[B] that nations should cooperate with other nations that cooperate with them
[C] non-discrimination among trading partners
[D] that each nation should be able to decide what other nations it prefers as trading partners

Show Answer

6. Which among the following is not a component of monetary policy in India?
[A] Moral suasion
[B] Public Debt
[C] Repo rate
[D] Credit Rationing

Show Answer

7. Which among the following is/are correct regarding Call Money?
[A] No Collateral is required in Call Money transaction
[B] It is the money lent/borrowed for maximum period of 30 days
[C] It is the money lent/borrowed for maximum period of 45 days
[D] Banks borrow primarily from customers

Show Answer

8. Any change in flow of funds and the demand of them, is clearly reflected in which of the following?
[A] Call money market
[B] Money market
[C] Repo market
[D] Commercial bill market

Show Answer

9. ‘Terms of trade’ between agriculture and industry has reference to?
[A] Relative price movements between the two sectors
[B] Relative quantities of production in the two sectors
[C] The extent of trade existent between the two sectors
[D] Relative international valuation of the agricultural produce in contrast to the industrial produce

Show Answer

10. Which among the following best describes scarcity in economics?
[A] Low demand for good
[B] High demand and less supply of good
[C] Low demand as people don’t want to consume it
[D] Goods available are not free

Show Answer