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. Export of which of the following is an Invisible Export?
[A] Services
[B] Prohibited goods
[C] Unrecorded goods
[D] Goods through smuggling
Show Answer
Correct Answer: A [ Services ]
Notes:
Any export that does not have a tangible physical presence (e.g. expertise, insurance underwriting). Here, Invisible Export means export of Services
2. Which is India’s largest nuclear power plant by installed capacity?
[A] Kaiga Nuclear Power Plant
[B] Kudankulam Nuclear Power Plant
[C] Kakrapar Nuclear Power Plant
[D] Tarapur Nuclear Power Station
Show Answer
Correct Answer: B [Kudankulam Nuclear Power Plant]
Notes:
Kudankulam Nuclear Power Plant in Tamil Nadu remains India’s largest by capacity, with Units 1 and 2 each at 1,000 MWe (total 2,000 MW operational). While India’s total nuclear capacity is now around 8,780-8,880 MW across 24-25 reactors as of early 2026, no other station exceeds Kudankulam’s installed capacity; Units 3 and 4 (1,000 MWe each) are under construction for 2026 completion, further expanding it to 4,000 MW. Tarapur (1,400 MW), Kakrapar (~1,400 MW with recent 700 MWe units), and Kaiga (880 MW) are smaller.
3. Which goods are consumed collectively by the community?
[A] Public Goods
[B] Consumer Goods
[C] Non-durable Goods
[D] Durable Goods
Show Answer
Correct Answer: A [Public Goods]
Notes:
Public goods are non-excludable and non-rivalrous commodities or services. They are made available to all members of society without direct payment. Examples include national defense, clean air, and street lighting. Governments usually fund public goods due to the free rider problem. Paul Samuelson formally defined public goods in 1954. Provision and maintenance typically rely on taxation and government administration.
4. Who among the following declared the First Industrial Policy in the Post Independence Period?
[A] Jawahar lal Nehru
[B] Syama Prasad Mookerjee
[C] Bayya Suryanarayana Murthy
[D] Rafi Ahmed Kidwai
Show Answer
Correct Answer: B [Syama Prasad Mookerjee]
Notes:
In the year 1948, India’s first Industrial Policy Resolution was adopted. This resolution defined the roles of government in development of industries in independent India. This policy determined that India would follow a mixed economy model having both public and private enterprises.
5. What happens to bank product prices during an inflationary trend?
[A] Increasing Trend
[B] Decreasing Trend
[C] Constant Trend
[D] No clear trend
Show Answer
Correct Answer: A [Increasing Trend]
Notes:
During inflation, central banks often raise policy rates, causing banks to increase loan and deposit rates. Higher inflation causes nominal lending and deposit rates to be repriced upwards. In 2023, the Reserve Bank of India increased repo rates in response to inflation, leading to higher lending rates in the Indian banking sector.
6. Who decides the interest rates on savings bank accounts in India?
[A] Central Government
[B] Banks themselves
[C] Reserve Bank of India
[D] Individual account holders
Show Answer
Correct Answer: B [Banks themselves]
Notes:
Banks in India have the authority to set savings bank account interest rates since May 2011. The Reserve Bank of India deregulated savings deposit rates in October 2011. Each bank decides its own rate, subject to RBI guidelines on calculation and credit of interest. RBI requires interest calculation on a daily basis. Rates are publicly notified by each bank.
7. Which among the following is NOT a subsidiary of RBI?
[A] National Housing Bank
[B] NABARD
[C] Bharatiya Reserve Bank Note Mudran Private Limited
[D] SIDBI
Show Answer
Correct Answer: D [SIDBI ]
Notes:
RBI has four subsidiaries viz. Deposit Insurance and Credit Guarantee Corporation, DICGC; National Housing Bank; Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) and NABARD.
8. The terms IBAN, BBAN, SEPA and SWIFT are associated with:
[A] International Banking
[B] Disaster Management
[C] Nuclear Waste Management
[D] International Maritime Boundaries
Show Answer
Correct Answer: A [ International Banking ]
Notes:
SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. SEPA stands for Single Euro Payment Are. The aim of SEPA is to ensure that payments within Europe take place as simply and effectively as those within a single country. IBAN stands for the International Bank Account Number is a unique identifier helping banks process payments from person to person automatically. The IBAN contains all necessary information of the owner if a bank account such as the account number, bank and branch information and country code. BBAN is short for Basic Bank Account Number. It represents a country-specific bank account number.
9. Which industries mainly benefit from Mumbai Port in Maharashtra?
[A] Iron and Steel industry
[B] Sugar and Cotton textile industry
[C] Cotton textile and Petrochemical industry
[D] Engineering and Fertilizer industry
Show Answer
Correct Answer: C [Cotton textile and Petrochemical industry]
Notes:
Mumbai Port in Maharashtra is a major center for handling cotton, petroleum, oil, and petrochemical shipments. It serves as a key import point for long staple cotton and machinery for the cotton textile sector. The port’s specialized terminals handle large volumes of petrochemical products. Cotton textile and petrochemical industries have longstanding reliance on Mumbai Port for raw material and export requirements.
10. On the basis of distribution, resources can be classified into which of the following?
[A] Potential resources
[B] Ubiquitous resources
[C] Actual resources
[D] Abiotic resources
Show Answer
Correct Answer: B [Ubiquitous resources]
Notes:
A ubiquitous resource is a natural resource that is available just about anywhere you live. Air, wind, water are all ubiquitous resources. Localized resources are natural resources only found in certain places.
