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 of the following is/are Money Market Instruments?
[A] Treasury Bills
[B] Commercial Papers
[C] Certificate of Deposits
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Money market securities are debt issues with maturities of one year or less. Treasury Bills, Certificate of Deposit as well as Commercial papers are money market instruments.
2. Which among the following is a suitable term for the state of economy in which economic activity is slowing down but wages and prices continue to rise ?
[A] Inflation
[B] Deflation
[C] Skweflation
[D] Stagflation
Show Answer
Correct Answer: D [Stagflation]
Notes:
Stagflation refers to persistent high inflation coupled with high unemployment and stagnant demand /growth in economy.
High Inflation + Low Economic Growth {or conditions of recession} + Low Employment Generation = Stagflation
3. What was the period of India’s First Five Year Plan?
[A] 1951-56
[B] 1961-66
[C] 1969-1974
[D] 1979-1984
Show Answer
Correct Answer: A [1951-56]
Notes:
India’s First Five-year Plan was implemented from the year 1951 till 1956. It mainly focused on the development of primary sector. The Plan was based on the Harrod–Domar model implemented with some modifications.
4. Hindustan Shipyard Limited is located at?
[A] Kochi
[B] Mumbai
[C] Vishakaptnam
[D] Chennai
Show Answer
Correct Answer: C [Vishakaptnam]
Notes:
Hindustan Shipyard Limited is the country’s premier shipbuilding organization. It is located on the East Coast of the Indian peninsula, at Visakhapatnam, Andhra Pradesh. In 2010, the company was transferred from the Ministry of Shipping to the Ministry of Defence.
5. Which among the following is a correct definition of Dollarization?
[A] when the inhabitants of a country use US dollars in parallel to or instead of the domestic currency
[B] when the inhabitants of a country use only US Dollars instead of a domestic currency
[C] when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency
[D] None of the above
Show Answer
Correct Answer: C [when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency]
Notes:
when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency, The term is not only applied to usage of the United States dollar, but generally to the use of any foreign currency as the national currency.
6. Which among the following correctly denotes Reserve Money?
[A] Currency in circulation
[B] Currency in Circulation + Other deposits of the General Public with RBI
[C] Currency in circulation + Other deposits of the general Public with RBI + Cash held with the banks
[D] Currency in circulation + Other deposits of the general Public with RBI + Cash held with the banks + Banker’s Deposits with RBI
Show Answer
Correct Answer: D [Currency in circulation + Other deposits of the general Public with RBI + Cash held with the banks + Banker’s Deposits with RBI]
Notes:
Reserve money is also called High Powered Money / central bank money. It is the Currency in Circulation plus Deposits of Commercial Banks with RBI.
7. In which of the following countries, International Rice Research center is Located?
[A] Thailand
[B] Malaysia
[C] Philippines
[D] Indonesia
Show Answer
Correct Answer: C [Philippines]
Notes:
The International Rice Research Institute (IRRI) is headquartered in Philippines and has operating offices in seventeen countries. The Institute was originally established in the yeat 1960. It aims to reduce poverty and hunger, improve the health of rice farmers and consumers.
8. Which among the following regulates housing finance companies in India ?
[A] RBI
[B] National Housing Bank
[C] Housing Development Finance Corporation
[D] Housing and Development Boards
Show Answer
Correct Answer: B [National Housing Bank]
Notes:
The National Housing Bank (NHB) is the regulator and supervisor of housing finance companies (HFCs) in India. The NHB was established in 1988 and operates as a subsidiary of the Reserve Bank of India. The NHB’s goal is to promote housing finance institutions at the ground and regional levels.
9. A competitive firm maximizes its profit when _______?
[A] MR=AR
[B] MR=MC
[C] MC=AC
[D] MC=AR
Show Answer
Correct Answer: B [MR=MC]
Notes:
A competitive firm maximizes its profit when its marginal revenue equals its marginal cost. Marginal revenue is the additional revenue earned by the firm from selling an additional unit of output. When marginal revenue equals marginal cost, the firm is earning the maximum possible profit. The marginal cost of production and marginal revenues are two determinants used to analyze the profitability of the production. When the marginal cost is below the marginal revenue, the firm can increase its revenue by producing more. When a competitive firm maximizes profit, profits are always greater than 0.
10. Seema Darshan project for border tourism belongs to which state?
[A] Jammu & Kashmir
[B] Rajasthan
[C] Gujarat
[D] Sikkim
Show Answer
Correct Answer: C [Gujarat ]
Notes:
On 10th April 2022, Union Home Minister Amit Shah launched the Nadabet Seema Darshan Project along the India-Pakistan border in the Banaskantha district of Gujarat. The project, which is being developed on the pattern of Wagah Border, will include an exhibition hall and a parade ground with an amphitheatre for 5,000 people. People can watch the border where the Gujarat’s seacoast meets the landmass. The project seeks to show how the BSF jawans protect the border round-the-clock. The project will encourage local economic activity in the Rann region, alongside visit to adjoining flamingo and wild ass sanctuaries.
