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. Through open market operations , RBI plays a very important role in which of the following markets?
[A] Gilt edged market
[B] Primary market
[C] Secondary market
[D] None of the above
Show Answer
Correct Answer: A [Gilt edged market]
Notes:
It’s a market for Gilt–edged Securities. These are high quality debt securities with very high credit worthiness issued by corporates or governments and hence they are named such. The probability of the organisation defaulting on interest and principle repayment is very low.
2. Which of the following is a suitable term for steady rise in the general level of prices, income, output and employment?
[A] Boom
[B] Recession
[C] Depression
[D] Recovery
Show Answer
Correct Answer: D [Recovery]
Notes:
The phase that is commonly used to describe a steady rise in the general level of prices, income, output, and employment is economic recovery.
3. Which among the following is a term for which alternate word “Buyer’s Monopoly” is used?
[A] Oligopoly
[B] Inverse monopoly
[C] Monopsony
[D] Duopoly
Show Answer
Correct Answer: C [Monopsony]
Notes:
Monopsony refers to a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many sellers.
4. Approximately what fraction of the world’s oil exports is pumped by the 12-member Organization of the Petroleum Exporting Countries OPEC?
[A] 25%
[B] 45%
[C] 50%
[D] 75%
Show Answer
Correct Answer: B [45%]
Notes:
Organization of the Petroleum Exporting Countries (OPEC) is estimated to account for around 40-45% of total global oil exports currently. In 2021, OPEC’s share of global oil exports was around 43%. As of 2022, it was around 40% of global oil exports.
5. In context with the macroeconomics , Philips Curve is a relationship between the rates of ___?
[A] Unemployment & Exim trade
[B] Unemployment and Inflation
[C] Unemployment and Demand
[D] Unemployment and Poverty
Show Answer
Correct Answer: B [Unemployment and Inflation]
Notes:
Phillips curve developed by A. W. Phillips says that the inflation and unemployment have a stable and inverse relationship; which means that higher inflation is associated with lower unemployment and vice versa. However, later it was proved that this curve is applicable only in the short-run, and in long-run, inflationary policies would not decrease unemployment.
6. In which of the following the term “cap and trade” is used?
[A] Share Broking
[B] Mutual Fund Investments
[C] Emission Trading
[D] Commodity Futures
Show Answer
Correct Answer: C [Emission Trading]
Notes:
Emissions trading (aka. cap and trade) refers to the market-based approach to control pollution by providing economic incentives for reducing the emissions of pollutants.
7. Which of the following bodies procures, distributes, exports and imports agricultural commodities?
[A] FCI
[B] NAFED
[C] NABARD
[D] All of them
Show Answer
Correct Answer: B [ NAFED ]
Notes:
NAFED is the apex body in cooperative sector and deals in procurement , distribution, export and import of selected agricultural commodities.
8. Which among the following is / are components of Internal Debt?
- Market Borrowings
- Treasury Bills
- Special securities issued to RBI
Select the correct option from the codes given below:
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: D [ 1, 2 & 3 ]
Notes:
Internal debt is that part of the total debt that is owed to lenders within the country. It is the money the government borrows from its own citizens. The government borrows by issuing the Government Bonds and T-Bills (Treasury Bills). It also includes the Market borrowings by the government. The government bonds and T-Bills are traded in the market which is also known as Gilt Market.Please note that when government borrows from the domestic sources, the increase in inflation is less in comparison to simply printing the money and increased the more liquid forms of wealth (i.e., the money supply).
9. Consider the following statements about the Rashtriya Arogya Nidhi Scheme:
- The scheme provides for financial assistance in the form of “one time grant” to patients living below poverty line and suffering from life-threatening diseases
- Under the scheme, the assistance for treatment is available only in Government Hospitals.
Which of the above statements is/are correct?
[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2
Show Answer
Correct Answer: C [Both 1 & 2]
Notes:
First statement is correct. The Rashtriya Arogya Nidhi Scheme aims to provide financial assistance to patients living below poverty line and suffering from the life-threatening diseases. The scheme provides financial assistance in the form of grant-in-aid. Second statement is correct. The assistance for treatment is available only in Government hospitals. Central Government & State Government employees are not eligible for the scheme.
10. Which of the following is an example of sunset industries?
[A] Peda making industry
[B] Petrochemical industry
[C] Food processing industry
[D] Space tourism
Show Answer
Correct Answer: A [ Peda making industry ]
Notes:
A sunrise industry is one that is new or relatively new, is growing fast and is expected to become important in the future. A sunset industry is an industry in decline, one that has passed its peak or boom periods.
