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. The Core inflation is different from the general inflation because of the following?
[A] Core Inflation is caused by the supply Shock in certain essential commodities
[B] Core Inflation is the sudden increase in certain items of food grains
[C] Core Inflation is the inflation rate of a particular basket of commodities
[D] Core Inflation is just a misnomer

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2. 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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3. Which institution publishes the World Economic Outlook Report?
[A] Federal Reserve Bank
[B] World Bank
[C] International Monetary Fund
[D] International Finance Corporation

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4. What is the main objective of setting up fair price shops?
[A] To demote speculation and hoarding
[B] To incentivise the trading of essential commodities
[C] To eliminate the monopoly of the traders and speculators
[D] To make the essential commodities available to the weaker sections of the society

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5. Which option best demonstrates cross-selling in a sales scenario?
[A] A salesperson suggests a premium whisky with local liquor.
[B] A fast-food worker offers fries with a sandwich order.
[C] A salesperson suggests a pricier laptop with upgrades.
[D] A salesperson offers in-car floor liners with a car purchase.

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6. In which year RBI was empowered to regulate money, forex, G-sec and gold related securities market?
[A] 2004
[B] 2006
[C] 2008
[D] 2010

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7. Which among the following agency is responsible for enforcement of Foreign Exchange Management Act 1999 and Prevention of money Laundering Act 2002 in India?
[A] Reserve Bank of India
[B] Department of Revenue
[C] Enforcement Directorate
[D] Income Tax Department

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8. Where can popular tourist attractions such as Chatham Saw Mill, Wandoor Beach, Mount Harriet and Limestone Caves be found?
[A] Goa
[B] Andaman and Nicobar Islands
[C] Lakshadweep
[D] Tamil Nadu

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9. Who among the following heads the Trade and Economic Relations Committee (TERC) in India?
[A] Prime Minister
[B] Minister of Commerce
[C] Finance Minister
[D] Finance Secretary

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10. Which statement defines RBI’s lender of last resort (LOLR) function?
[A] RBI meets all commercial bank demands, regardless of financial status
[B] RBI meets reasonable demands of solvent banks with temporary liquidity crises
[C] RBI lends exclusively to governments for budget deficits
[D] RBI offers LOLR facilities to all NBFCs without restrictions

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