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. Who among the following are the beneficiaries of Ways and Means Advances (WMA) facility of Reserve Bank of India?
[A] Commercial Banks
[B] Regional Rural banks
[C] State Governments
[D] Authorized Dealers of Foreign Exchanges

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2. How many indicators are included in the Multidimensional Poverty Index (MPI)?
[A] 8
[B] 9
[C] 10
[D] 11

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3. What happens to bank product prices during an inflationary trend?
[A] Increasing Trend
[B] Decreasing Trend
[C] Constant Trend
[D] No clear trend

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4. Which among the following authority appoints a Deputy Governor in Reserve Bank of India?
[A] Governor of RBI
[B] Central Board of Directors
[C] Central Government
[D] Committee of the Central Board

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5. Consider the following:

  1. Short Term Funds
  2. Medium Term Funds
  3. Long Term Funds

Which among the above is/ are dealt in the Indian Capital Market?

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

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6. Collateralized Borrowing and Lending Obligation (CBLO) is a ____?
[A] Money Market Instrument
[B] Monetary Policy Instrument
[C] Investment fund
[D] Capital Market Instrument

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7. Commercial Paper (CP) is issued in the form of which instrument?
[A] Demand Draft
[B] Promissory Note
[C] Cheque
[D] Bill of Exchange

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8. What does Revenue Neutral Rate (RNR) mean?
[A] A policy where revenue receipts equal revenue expenditures
[B] A tax rate to ensure income tax equity
[C] A property tax rate generating same revenue as previous year
[D] A tax policy increasing revenue without hearings

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9. What is India’s current global ranking in cotton production?
[A] First
[B] Second
[C] Third
[D] Fourth

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10. Which of the following is represented by ‘Lorenz Curve’?
[A] Inflation
[B] Income Distribution
[C] Employment
[D] Deflation

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