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. What is a mutual fund that invests in other mutual funds called?
[A] Pool
[B] ETF (Exchange-Traded Fund)
[C] FOF (Fund of Funds)
[D] Portfolio

Show Answer

2. Which body recommends Minimum Support Prices for major crops annually?
[A] Planning Commission of India
[B] Finance Commission of India
[C] Commission for Agricultural Costs and Prices
[D] Farmer’s Commission of India

Show Answer

3. Which organization aids members in balance of payments problems?
[A] World Bank
[B] International Monetary Fund
[C] Asian Development Bank
[D] World Economic Forum

Show Answer

4. Which tool is used for sterilization during foreign capital inflows to control inflation?
[A] Filtering undeclared foreign assets
[B] Selling government securities in the open market
[C] Imposing restrictions on foreign exchange trading
[D] Allowing currency to appreciate freely

Show Answer

5. Who among the following was the chairman of the expert committee which suggested “Consumption Expenditure” for identifying the BPL?
[A] Abhijit Sen
[B] C Rangrajan
[C] Kirit Parikh
[D] Suresh Tendulkar

Show Answer

6. Who is the appellate authority after a Banking Ombudsman’s decision?
[A] Governor of RBI
[B] Executive Director of RBI
[C] RBI Local Boards
[D] Chairman of the concerned Bank

Show Answer

7. What is vertical farming?
[A] Growing unrelated crops together in the same tract of land
[B] Growing related crops together in the same tract of land
[C] Cultivating crops inside multi-storey buildings
[D] Using aquaculture, sericulture, pisciculture, and bee culture together

Show Answer

8. The minimum interest rate of a bank below which it is not viable to lend, is known as ____:
[A] Reserved Rate
[B] Base Rate
[C] Marginal Rate
[D] Prime Lending Rate

Show Answer

9. Which price index measures headline inflation in India?
[A] GDP Deflator
[B] WPI
[C] CPI-AL/RL
[D] CPI-IW

Show Answer

10. With reference to the business, what is working capital?
[A] The investment made in the business
[B] Fixed assets
[C] Circulating assets- stocks, cash and debts owed to the business
[D] Amount spent on machinery or for building up stock

Show Answer