Indian Economy MCQs

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Monetary Policy Committee (MPC) committee comprises six members – three officials of the Reserve Bank of India and three external members nominated by the Government of India.

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Money multiplier is expressed as a ratio between broad money (M3) and Reserve money (M0). It refers to how an initial deposit can lead to a bigger final increase in the total money supply.

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The National Rural Credit stabilization fund is a sector specific finds maintained with National Bank for Agriculture and Rural Development. This fund includes contributions from Central and State Governments, sums contributed by RBI and the sums contributed by NABARD’s board every year.

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Its barrel per day , amount of crude oil (measured in barrels) produced or consumed by an entity in one day. One barrel 42 gallons

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In 2024, India was the second-largest steel producer after China. India produced around 149.4 to 149.6 million tonnes of crude steel. China produced 1,005.1 million tonnes, and Japan ranked third with 84 million tonnes. Major Indian companies include Tata Steel, JSW Steel Limited, and SAIL. India plans to expand steel production capacity to 300 million tonnes by 2030 and 500 million tonnes by 2047.

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A NOSTRO account is a bank account that a domestic bank holds in a foreign country in the currency of that country. The term is derived from the Latin word meaning “ours.” For Union Bank of India, holding an account with Citibank in New York in US dollars constitutes a NOSTRO account. Such accounts are used for international transactions and settlements.

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A wage-price spiral occurs when rising wages increase production costs leading to higher prices, which then prompt further wage demands. This describes cost-push inflation. Cost-push inflation is driven by increased costs of inputs such as wages and raw materials. During the 1970s, wage-price spirals contributed to persistent inflation in many developed countries due to frequent labor market adjustments and price hikes.

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Prasantha Chandra Mahalanobis or P. C. Mahalanobis (1893-1972) was the first Indian statistician to receive world recognition. In 1933, Mahalanobis founded the first Indian statistical journal Sankhya, along the lines of Biometrika, which had inspired him greatly. He was architect of India’s second five year plan and due to this second plan is known as Mahalanobis model.

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Open unemployment is a condition in which people have no work to do. They are able to work and are also willing to work but there is no work for them. They are found partly in villages, but very largely in cities. Most of them come from villages in search of jobs, many originate in cities themselves. Such employment can be seen and counted in terms of the number of such persons. Hence it is called open unemployment.

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Kandla Special Economic Zone, located near Kandla port in Gujarat, was established as Asia’s first Export Processing Zone in 1965. It was renamed as Kandla Free Trade Zone and later upgraded to SEZ status in 2000. The zone covers approximately 1000 acres and hosts more than 300 export-oriented units. It provides various fiscal incentives under the SEZ Act, 2005.