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 tax is levied exclusively by state governments in India?
[A] Entertainment Tax
[B] Wealth Tax
[C] Estate Duty
[D] Corporation Tax

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2. Which among the following ratios correctly denotes Money Multiplier?
[A] M3: M0
[B] M1: M3
[C] M3: M1
[D] M1: M0

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3. A new private bank in India is established under which act?
[A] Banking Regulation Act 1949
[B] Companies Act 2013
[C] RBI Act 1934
[D] Banking Companies (Acquisition and Transfer) Act 1970

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4. Which body regulates housing finance companies (HFCs) in India?
[A] Reserve Bank of India (RBI)
[B] National Housing Bank (NHB)
[C] Housing Development Finance Corporation
[D] State Housing Development Boards

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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

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6. Which option best demonstrates cross-selling in a sales scenario?
[A] A salesperson suggests a premium whisky with local liquor.
[B] A fast-food worker offers fries with a sandwich order.
[C] A salesperson suggests a pricier laptop with upgrades.
[D] A salesperson offers in-car floor liners with a car purchase.

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7. Progressive taxation aligns with which principle in tax theory?
[A] Benefit principle
[B] Cost of service theory
[C] Ability to pay principle
[D] Equity of sacrifice approach

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8. Consider the following institutions:

  1. International Monetary Fund
  2. World Bank
  3. World Trade Organization
  4. US Treasury Department
  5. US Federal Bank

Which among the above institutions were a part of Washington Consensus?

[A] 1 & 2
[B] 1, 2 & 3
[C] 1, 2 & 4
[D] 1, 2, 3 & 4

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9. Which statement is true about an equity fund?
[A] It guarantees fixed returns to investors
[B] It invests equally in debt and equity securities
[C] It invests mainly in stocks for long-term capital growth
[D] It assures predictable growth regardless of markets

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10. Any banking company can undertake any business other than the banking business in accordance with the provisions contained in which among the following acts?
[A] Reserve Bank of India Act
[B] Negotiable Instruments Act
[C] Banking Regulation Act
[D] None of the above

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