Indian Economy MCQs

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Inflation refers to rise in general price level of goods and services, deflation is fall in general price level of goods and services. Deflation is inflation in negative zone, i.e. a decrease in the general price level of goods and services.

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The first steam locomotive produced by Chittaranjan Locomotive Works (CLW) was dedicated to the nation on November 1, 1950. This significant event coincided with the renaming of the Loco Building Works as Chittaranjan Locomotive Works, in honor of the freedom fighter, leader, and statesman Deshbandhu Chittaranjan Das. The dedication ceremony was conducted by the first President of India, Dr. Rajendra Prasad. This marked an important milestone in the history of CLW, establishing it as a key manufacturer in India’s locomotive industry. The production of steam locomotives commenced earlier on January 26, 1950, and over the years, CLW evolved to become the largest locomotive manufacturer in the world.

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The correct answer is the International Development Fund (IDF). The IDF, part of the World Bank Group, provides financial assistance to developing countries to help them address balance of payments issues. It offers concessional loans and grants aimed at stabilizing economies and promoting sustainable development. The Asian Development Bank also plays a role in this area, but the IDF specifically targets balance of payments support.

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The Directorate of Marketing and Inspection (DMI)  operates under the Department of Agriculture, Cooperation, and Farmers Welfare, Ministry of Agriculture and Farmers Welfare. It was established in 1935 and serves as the regulatory body responsible for promoting and regulating marketing and quality control of agricultural and allied products in the country.

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The correct answer is “Deficit Financing.” This refers to the practice where a government spends more money than it receives in revenue, often funded by borrowing or printing new money. In India, the Reserve Bank of India (RBI) can finance government deficits by purchasing government securities, effectively allowing the government to inject liquidity into the economy. This method can lead to inflation if overused, as seen in various economies throughout history.

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Anhydrous Ammonia is a gaseous fertilizer with NPK ratio 82-00-00. Urea has 46-00-00. Among solid fertilizers, Urea has maximum N content.

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Printing of currency creates a situation where too much money chases few goods and thus leads to condition of inflation. So; it is the last preferred option for government.

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"Bull" and "Bear" are two terms used in stock markets to signify the different market conditions. While bear denotes a market condition in which prices of securities are falling, bull denotes a market condition in which prices of a group of securities are rising or are expected to rise.

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The two presses of Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) are located at Mysore and Salboni.

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Economies are divided into IDA, IBRD, and Blend countries based on the operational policies of the World Bank. International Development Association (IDA) countries are those with low per capita incomes that lack the financial ability to borrow from the International Bank for Reconstruction and Development (IBRD). Blend countries are eligible for IDA loans but are also eligible for IBRD loans because they are financially creditworthy.