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. During inflation, how do banks usually set their loan prices?
[A] A decreasing trend
[B] Constant level
[C] No relation to inflation
[D] An increasing trend

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2. Which of the following are instruments of monetary policy?

  1. Bank Rate Policy
  2. Reserve Ratio Requirements
  3. Liquidity Adjustment Facility
  4. Open Market Operations

Select the correct option from the codes given below:

[A] Only 1, 2 & 3
[B] Only 2, 3 & 4
[C] Only 1, 2 & 4
[D] 1, 2, 3 & 4

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3. What is the main purpose of margin requirements in securities trading?
[A] To fulfill central bank regulatory mandates
[B] To comply with Basel III standards
[C] To protect lenders by requiring sufficient borrower equity
[D] To increase brokerage firm profits

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4. Which has the highest weightage in the Index of Industrial Production (IIP)?
[A] Electricity
[B] Steel Industry
[C] Refinery Products
[D] Coal

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5. In which among the following types comes the Interest Rate Risk?
[A] Credit risk
[B] Market risk
[C] Operational risk
[D] All the above categories

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6. Why is core inflation used over headline inflation for assessing inflation trends?
[A] Core inflation includes food and energy prices
[B] Core inflation excludes food and energy prices
[C] Core inflation uses a narrower goods basket
[D] Headline inflation predicts price changes better

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7. What does “bear market” mean in stock market terminology?
[A] A period when stock prices rise steadily
[B] Foreign investors outperform domestic investors
[C] Higher investment in money market than capital market
[D] Stock prices fall 20% or more from recent highs for at least two months

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8. Which among the following is the primary difference between a free trade area and a customs union?
[A] members of a free trade area adopt a common set of barriers for trade between the members
[B] a free trade area is considered a trade bloc and a customs union is not
[C] members of a customs union adopt a common set of external trade barriers
[D] a free trade area can include parts of a country and a customs union includes entire countries

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9. The two presses of Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) are located at:
[A] Mysore and Salboni
[B] Nashik and Dewas
[C] Mysore and Dewas
[D] Mumbai and Kolkata

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10. Tank irrigation is mainly practiced in which region of India?
[A] South India
[B] West India
[C] North India
[D] North-East India

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