Indian Economy MCQs

Notes:
Gross Budgetary Support refers to the budgetary support provided by the Union Government for development expenditure and schemes. It is a funding source used to finance public programmes and capital or developmental outlays in the budget. The term is used in government finance to denote support from budgetary resources rather than total receipts or a percentage share of expenditure. Hence, option 2 gives the correct definition.

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Suresh Tendulkar chaired the expert committee on estimation of poverty in India. The committee examined poverty measurement and recommended using consumption expenditure-based indicators for identifying BPL households, instead of relying on income alone. Its report became an important reference point for poverty estimation in India and influenced later debates on poverty lines, methodology, and welfare targeting. Hence, Suresh Tendulkar is the correct answer.

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Qualitative or selective methods of credit control refers to those methods which limit the nature or variety of money supply rather than its quantity. Such methods include regulation of margin requirement, credit rationing, regulation of consumer credit and direct action.

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The Reserve Bank of India (RBI) has two currency printing presses in India:  Mysore, Karnataka and Salboni, West Bengal.
The RBI’s presses are owned by Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a subsidiary of the Reserve Bank. The other two currency presses in India are owned by the government and are located in Nasik and Dewas.

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Saudi Arabia is the top oil producer in OPEC, with vast reserves, low extraction costs, and significant spare production capacity managed by Saudi Aramco, granting major influence over global oil markets.

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Local Area Banks are covered by a separate RBI prudential framework that prescribes capital adequacy requirements specifically for this category. These banks are small, region-focused entities created to mobilize local savings and extend credit within a limited geographic area. Their capital norms are not framed in the same way as those for broad banking groups such as scheduled commercial banks or private sector banks carrying on insurance business.

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Cultural command area refers to the area that can be irrigated and cultivated after suitable preparation. It is a key parameter in designing irrigation plans to determine the extent of land that irrigation projects can serve effectively. Calculation of cultural command area is a standard part of planning for canal and irrigation networks in Indian agriculture and water resource engineering.

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The correct representation of the Money Multiplier is the ratio of Broad Money (M3) to Reserved Money (M0), expressed as M3/M0. The Money Multiplier indicates how much money supply can increase based on the reserves held by banks. M0 represents the total of a country’s physical currency, while M3 includes all liquid or near-liquid assets. This relationship is crucial in understanding monetary policy and banking operations.

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ITDC is an hospitality, retail and Education company owned by Government of India, under Ministry of Tourism. Its headquarters is located in New Delhi.

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Stagflation, as you might know is a condition when economy isn’t growing but prices are. So, this option would be opted out. Next two are disinflation and deflation. Disinflation means rise in prices has slowed down significantly as compared with the previous year. This simply implies that prices don’t fall during disinflation also. Deflation is when the prices actually fall. Kindly note that deflation usually moves hand in hand with economic slowdown, lower productivity and loss of employments.