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. Rs. 100 notes are printed at which locations in India?
[A] Nashik and Dewas only
[B] Mysore and Salboni only
[C] Nashik, Dewas, Mysore and Salboni only
[D] Noida and Hoshangabad
Show Answer
Correct Answer: C [Nashik, Dewas, Mysore and Salboni only]
Notes:
Indian banknotes are printed at four currency presses in the country. Two presses operated by SPMCIL are located at Nashik and Dewas, while the other two presses run by BRBNMPL are at Mysuru and Salboni. These four locations together handle the printing of ₹100 notes and other denominations as per RBI requirements. Hence, the correct answer is the combination of all four printing locations.
2. Who among the following declared the First Industrial Policy in the Post Independence Period?
[A] Jawahar lal Nehru
[B] Syama Prasad Mookerjee
[C] Bayya Suryanarayana Murthy
[D] Rafi Ahmed Kidwai
Show Answer
Correct Answer: B [Syama Prasad Mookerjee]
Notes:
In the year 1948, India’s first Industrial Policy Resolution was adopted. This resolution defined the roles of government in development of industries in independent India. This policy determined that India would follow a mixed economy model having both public and private enterprises.
3. Which among the following is used for a situation of “Too much money chasing too few goods?
[A] Demand Pull Inflation
[B] Cost pull inflation
[C] Stagflation
[D] Hyperinflation
Show Answer
Correct Answer: A [Demand Pull Inflation]
Notes:
Demand-pull inflation refers to the inflation from rapid growth in aggregate demand and when excess demand causes ‘too much money chasing too few goods.’ This generally happens when an economy is growing at a faster rate.
4. In which Union Budget was “basic reform in the international financial system” stressed?
[A] 1969
[B] 1980
[C] 1983
[D] 1984
Show Answer
Correct Answer: C [1983]
Notes:
The phrase was highlighted in the Union Budget for 1983-84. Finance Minister Pranab Mukherjee emphasized India’s efforts towards reforming the international financial and trading system. This Budget was presented for the fiscal year starting 1983, linking the statement directly to this period.
5. 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
Show Answer
Correct Answer: A [Prime Minister]
Notes:
The Trade and Economic Relations Committee (TERC) in India is headed by the Prime Minister. This committee was established to enhance India’s trade relations and economic policies, reflecting the government’s focus on international trade as a key driver of economic growth. The Prime Minister’s leadership underscores the importance of trade in India’s economic strategy.
6. Which term refers to the maximum capital a company can raise in its lifetime?
[A] Authorized Capital
[B] Registered Capital
[C] Nominal Capital
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Authorized capital is the maximum share capital stated in a company’s Memorandum of Association. Registered capital and nominal capital are alternate terms for authorized capital. This ceiling cannot be exceeded without shareholder approval and modification in company documents as per the Companies Act, 2013.
7. A transfer payment is a payment that is __:
[A] made by the government to its current workers
[B] made to people who are needy
[C] For in-kind services provided to the government
[D] For which no services or goods are rendered
Show Answer
Correct Answer: D [ For which no services or goods are rendered ]
Notes:
Transfer Payment is the payment exchanged for return of no goods or services. It generally describes the welfare expenditure of the government such as subsidies, pensions, grants etc.
8. The negotiable instruments are passed freely from one party to another almost in the same way as money. To be negotiable, a promissory note must include a / an:
[A] conditional promise to pay on demand or at a definite time
[B] unconditional promise to pay on demand or at an indefinite time
[C] unconditional promise to pay on demand or at a definite time
[D] conditional promise to pay on demand or at an indefinite time
Show Answer
Correct Answer: C [unconditional promise to pay on demand or at a definite time]
Notes:
A promissory note is a negotiable instrument only when it contains an unconditional promise to pay a certain sum of money. The payment may be made on demand or at a definite time, but it cannot depend on any condition. This is a basic requirement under negotiable instruments law. Therefore, option 3 correctly states the essential feature of negotiability in a promissory note.
9. Which Ministry set “Haat to Hypermarket” as the Rural Business Hubs’ objective?
[A] Ministry of Panchayati Raj
[B] Ministry of Corporate Affairs
[C] Ministry of Skill Development and Entrepreneurship
[D] Ministry of Rural Development
Show Answer
Correct Answer: A [Ministry of Panchayati Raj]
Notes:
The Ministry of Panchayati Raj launched the Rural Business Hubs (RBH) initiative in 2007. The “Haat to Hypermarket” objective aims to connect rural producers to wider markets. The ministry focuses on rural empowerment through economic partnerships and market linkages for local artisans. RBH projects involve village industries, micro-enterprises, and cooperatives under the ministry’s schemes.
10. What is the primary operational role of MUDRA (SIDBI) Bank?
[A] Provide direct loans to micro enterprises up to ₹10 lakh
[B] Undertake refinance and support services like portal management and data analysis
[C] Establish foreign direct investment channels for Indian MSMEs
[D] Finance only high-growth manufacturing startups
Show Answer
Correct Answer: B [Undertake refinance and support services like portal management and data analysis]
Notes:
MUDRA (SIDBI) Bank operates as a refinance agency primarily providing refinance support to banks, MFIs, and NBFCs for lending to micro and small enterprises. It also provides support services such as management of financing portals and data analysis. It does not directly lend to micro enterprises. MUDRA Bank operates under the Pradhan Mantri MUDRA Yojana scheme since its formation in 2015.
