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 plan document has a subtitle ” Inclusive growth” ?
[A] 10th Five year Plan
[B] 11th Five year Plan
[C] National Solar Mission
[D] Bhart Nirman
Show Answer
Correct Answer: B [11th Five year Plan]
Notes:
The correct answer is the 11th Five Year Plan. Launched in 2007, it emphasized “Inclusive Growth” to address poverty and inequality in India. This plan aimed to enhance social and economic development, focusing on sectors like education, health, and rural development. The 11th Plan set a target of 9% GDP growth, which indicates the importance of inclusive policies for sustainable development.
2. Euribor is associated with which of the following?
[A] An International Financial Company
[B] An association of European Financial Service providers
[C] A reference rate for Euro Money Market
[D] A credit rating agency of Europe
Show Answer
Correct Answer: C [A reference rate for Euro Money Market]
Notes:
Euribor stands for Euro Interbank Offered Rate and is published by the European Money Markets Institute. It is a benchmark interest rate at which banks can borrow funds from one another in the euro money market. Euribor is published for five maturities. The rate is used as a reference for financial contracts such as mortgages and loans denominated in euro.
3. A country has crude birth rate of 44 and a crude death rate of 11. The number of immigrants is more than emigrants. What would be the rate of natural increase of population?
[A] 0.75%
[B] 3.3%
[C] 2.9%
[D] Can not be determined
Show Answer
Correct Answer: B [ 3.3% ]
Notes:
• Crude Birth Rate : Number of Births per 1000 population in a given year.
• Crude Death Rate : Number of Deaths per 1000 population in a given year.
• Natural Increase Rate of Population = Crude Birth Rate- Crude Death rate
4. Consider the following statements regarding the proposed Wholesale & Long-Term Finance Banks (WLTF):
- They cannot accept saving deposits.
- They will raise funds by issuing rupee denominated bonds, locally as well as abroad.
- They are required to maintain 40 percent of their branches in rural areas.
Which of the above statements is / are correct?
[A] Only 2 and 3
[B] Only 1 and 3
[C] Only 1 and 2
[D] 1, 2 and 3
Show Answer
Correct Answer: C [Only 1 and 2]
Notes:
The first and second statements are correct: WLTF banks cannot accept saving deposits and may raise funds via rupee denominated bonds both locally and abroad. The third is incorrect: WLTF banks are exempt from maintaining a mandatory branch network in rural areas, differing from universal banks, and thus have no such requirement.
5. Which type of foreign exchange rate system does India follow?
[A] Fixed
[B] Free float
[C] Managed float
[D] Fixed target band
Show Answer
Correct Answer: C [Managed float]
Notes:
India has a managed floating exchange rate system since 1994. The Reserve Bank of India intervenes in the foreign exchange market to reduce excessive volatility. The rupee exchange rate is mainly determined by market demand and supply. The system allows daily fluctuations, with the RBI entering the market when necessary to maintain orderly conditions.
6. Where is the headquarters of Hindustan Zinc Ltd?
[A] Jaipur
[B] Jodhpur
[C] Jaisalmer
[D] Udaipur
Show Answer
Correct Answer: D [Udaipur]
Notes:
Hindustan Zinc Limited (HZL) is an integrated mining and resources producer of zinc, lead, … Chanderiya (Chittorgarh), Debari (Udaipur) & Dariba (Rajsamand) in Rajasthan with total zinc and lead production capacity of 1.0 million tonnes.
7. Which option best represents a person’s overall financial wealth?
[A] Bank balance
[B] Capital
[C] Assets
[D] Net worth
Show Answer
Correct Answer: D [Net worth]
Notes:
Net worth equals total assets minus total liabilities. It includes properties, financial investments, cash, and all debts. Net worth calculation is used for individuals, companies, and governments to assess overall financial position. The term is commonly used in balance sheets and personal financial statements. As of 2024, net worth remains the primary financial indicator in banking, accounting, and wealth management sectors globally.
8. Why did famine intensity rise in India under British rule? (UPSC Prelims 1991)
[A] The failure of monsoons became frequent
[B] The drain of wealth from India was uncontrolled
[C] Poor distribution of food grains
[D] Discriminatory protection to food processing industries
Show Answer
Correct Answer: B [The drain of wealth from India was uncontrolled]
Notes:
The uncontrolled drain of wealth by the British depleted resources, worsening famines. From 1763–1856, over 40 major rebellions followed such crises. The Sanyasi Rebellion post-1770 Bengal famine exemplifies the link between exploitation and food crises during British rule.
9. Which of the following is the highest milk producing breed of goat in India? (UPSC Prelims 1994)
[A] Barbari
[B] Jamnapari
[C] Black Bengal
[D] Beetal
Show Answer
Correct Answer: B [Jamnapari]
Notes:
Jamnapari is the most popular breed for commercial goat farming in India. It is also the highest milk producing breed of goat in India It is mostly found in Uttar Pradesh.
10. What is Market equilibrium?
[A] Quantity demanded greater than quantity supplied
[B] Quantity demanded less than quantity supplied
[C] Quantity demanded equal to quantity supplied
[D] Quantity demanded is same as quantity produced
Show Answer
Correct Answer: C [Quantity demanded equal to quantity supplied]
Notes:
Market equilibrium is defined by equality between quantity demanded and quantity supplied in the market. The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market.
