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. Which among the following is an anti-inflationary measure?
[A] Stagflation
[B] Hyper inflation
[C] Disinflation
[D] Deflation
Show Answer
Correct Answer: C [Disinflation]
Notes:
Disinflation means the decrease in the rate of inflation. It is a slowdown in the rate of increase of price levels of goods and services. This is different from deflation, in the way that Disinflation is only a marginal and short term decrease in rate of inflation.
2. Which term refers to high inflation, slow growth, and high unemployment occurring together?
[A] Depression
[B] Stagflation
[C] Recession
[D] Reflation
Show Answer
Correct Answer: B [Stagflation]
Notes:
Stagflation refers to an economic situation where high inflation, stagnant economic growth, and elevated unemployment occur simultaneously. The term was coined in the 1960s. A notable period of stagflation happened during the 1970s oil crisis when global oil prices rose sharply. Policymakers find stagflation challenging because inflation and unemployment move in opposite directions to typical business cycles.
3. With which of the following WIPO is related to ?
[A] Investment
[B] Intellectual property
[C] International trade
[D] Indigenous people
Show Answer
Correct Answer: B [Intellectual property]
Notes:
WIPO-World Intellectual Property Organization
4. India’s first Export Promotion Industrial park was opened in:
[A] Delhi
[B] Nagpur
[C] Jaipur
[D] Bangalore
Show Answer
Correct Answer: C [Jaipur]
Notes:
India’s first Export Promotion Industrial Park (EPIP) was opened in Jaipur. The EPIP in Rajasthan at Sitapura is complete. The park is the largest Export-Park in Northern India.
The EPIP scheme was implemented to create infrastructure for exports in specific locations. The parks have modern infrastructure to boost the export of commodities and services. Units in the EPIP must commit to exporting at least 33% of their production.
5. Who was the first Indian Governor of Reserve Bank of India?
[A] First Indian to establish a Bank in India
[B] First Indian to be chairman of State Bank of India
[C] First Indian to be governor of the Reserve Bank of India (RBI)
[D] Pioneer in Indian Commercial Banking
Show Answer
Correct Answer: C [First Indian to be governor of the Reserve Bank of India (RBI)]
Notes:
Sir Chintaman Dwarkanath Deshmukh became the first Indian Governor of RBI in 1943. He served as Governor until 1949. He was also awarded the Bharat Ratna in 1959. RBI was established in 1935 and originally had British Governors until Deshmukh’s appointment. Deshmukh later became the Finance Minister of India from 1950 to 1956.
6. What is India’s yearly branch limit for foreign banks under WTO and FTAs?
[A] 12 branches per year
[B] 15 branches per year
[C] 12 branches under GATS; 15 under FTAs
[D] 20 branches per year
Show Answer
Correct Answer: C [12 branches under GATS; 15 under FTAs]
Notes:
India’s WTO commitments via GATS restrict foreign bank branches to 12 annually. Bilateral FTAs, such as with New Zealand (December 2025), raise this to 15 branches over four years. The annual cap depends on whether GATS or bilateral FTA terms apply.
7. Economic Planning comes under which of the following lists ?
[A] Union List
[B] Concurrent list
[C] State List
[D] None of them
Show Answer
Correct Answer: B [Concurrent list]
Notes:
Economic Planning refers to any plans of economic activity which point to achieve specific social and economic outcomes. It is a subject matter of concurrent list in 7th schedule of Indian constitution.
8. Who decides the interest rates on savings bank accounts in India?
[A] Central Government
[B] Banks themselves
[C] Reserve Bank of India
[D] Individual account holders
Show Answer
Correct Answer: B [Banks themselves]
Notes:
Banks in India have the authority to set savings bank account interest rates since May 2011. The Reserve Bank of India deregulated savings deposit rates in October 2011. Each bank decides its own rate, subject to RBI guidelines on calculation and credit of interest. RBI requires interest calculation on a daily basis. Rates are publicly notified by each bank.
9. Which term is not formally linked with Indian government budgets?
[A] Outcome Budget
[B] Gender Budget
[C] Austerity Budget
[D] Performance Budget
Show Answer
Correct Answer: C [Austerity Budget]
Notes:
Austerity Budget is not an official budget type in India. Outcome Budget was introduced in 2005 to link allocations with measurable results. Gender Budget was initiated in 2005-06 for women’s development. Performance Budget allocates funds based on achievements. The Indian Union Budget officially includes Outcome, Gender, and Performance Budgets, but not Austerity Budget.
10. What is the short name of India’s top authority for Indirect Taxes?
[A] CBDT
[B] CBEC
[C] CBIT
[D] CBIC
Show Answer
Correct Answer: D [CBIC]
Notes:
The Central Board of Indirect Taxes and Customs (CBIC) was renamed in 2018 from CBEC. CBIC is a statutory body under the Department of Revenue, Ministry of Finance. It is responsible for administration of GST, customs, excise and service tax in India. The board was originally established in 1964 by the Central Boards of Revenue Act, 1963.
