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.
11. What is the primary operational role of MUDRA (SIDBI) Bank?
[A] Provide direct loans to micro enterprises up to ₹10 lakh
[B] Undertake refinance and support services like portal management and data analysis
[C] Establish foreign direct investment channels for Indian MSMEs
[D] Finance only high-growth manufacturing startups
Show Answer
Correct Answer: B [Undertake refinance and support services like portal management and data analysis]
Notes:
MUDRA (SIDBI) Bank operates as a refinance agency primarily providing refinance support to banks, MFIs, and NBFCs for lending to micro and small enterprises. It also provides support services such as management of financing portals and data analysis. It does not directly lend to micro enterprises. MUDRA Bank operates under the Pradhan Mantri MUDRA Yojana scheme since its formation in 2015.
12. Consider the following statements regarding the “PRASAD” scheme:
- It focuses on the development and rejuvenation of identified pilgrimage destinations and heritage cities.
- Under the scheme, the Ministry of Tourism provides Central Financial Assistance (CFA) to State Governments/Union Territory Administrations for tourism projects.
- As per the most recent data, 54 projects have been sanctioned under the scheme across 28 States/UTs.
Which of the above statements is/are correct?
[A] Only 1 and 2
[B] Only 2 and 3
[C] Only 1 and 3
[D] 1, 2 and 3
Show Answer
Correct Answer: D [1, 2 and 3]
Notes:
The PRASAD scheme, launched by the Ministry of Tourism in 2014-15, stands for Pilgrimage Rejuvenation and Spiritual Augmentation Drive. Statement 1 is correct: it targets pilgrimage and heritage city development. Statement 2 is correct: the ministry provides Central Financial Assistance. Statement 3 is correct: 54 projects in 28 States/UTs have been sanctioned under the scheme as per latest data.
13. In what form do banks maintain CRR with the RBI?
[A] Cash
[B] Government Securities
[C] Gold
[D] All of the above
Show Answer
Correct Answer: A [Cash]
Notes:
CRR requires banks to hold a specified percentage of their deposits as liquid cash with RBI; no securities or gold are allowed.
14. Which of these is used as promise from a bank to make a payment assuming certain conditions are met?
[A] Cash Credit
[B] Over Draft
[C] Letter of Credit
[D] Term Loan
Show Answer
Correct Answer: C [Letter of Credit]
Notes:
A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.
15. Which of the following is a balanced fertilizer for plants?
[A] Urea
[B] Ammonia sulphate
[C] Nitrates
[D] Compost
Show Answer
Correct Answer: D [Compost]
Notes:
Fertilizers are used by farmers for the better crop growth. Normally compost is considered as the balanced fertilizer as it does not harm plants and increase the productivity. But considering artificial fertilizers a balanced fertilizer is chosen which have balanced amount of NPK. Generally, nitrogen is used by plants to produce green growth and potassium for flower and fruit development. A balanced fertilizer such as 10-10-10 of NPK is a good choice for vegetables and other high-nutrient plants.
16. Which among the following sectors work can be outsourced?
[A] Primary sector
[B] Secondary sector
[C] Tertiary sector
[D] Public sector
Show Answer
Correct Answer: C [Tertiary sector]
Notes:
The tertiary sector’s activities help in the development of the primary and secondary sectors. By itself, economic activities in the tertiary sector do not produce goods so they can be outsourced.
17. Which sector is small, unregulated and outside government control?
[A] Organised Sector
[B] Unorganised sector
[C] Public sector
[D] Private sector
Show Answer
Correct Answer: B [Unorganised sector]
Notes:
An unorganised worker is a home-based worker or a self-employed worker or a wage worker in the unorganized sector and includes a worker in the organized sector who is not covered by any of the Acts pertaining to welfare Schemes. So the are small and outside controlling authority.
18. What is growing of trees or shrubs around or among crops known as?
[A] Agro forestry
[B] Ally cropping
[C] Forestry
[D] Multi cropping
Show Answer
Correct Answer: A [Agro forestry]
Notes:
Agroforestry is a land use management system in which trees or shrubs are grown around or among crops or pastureland. This intentional combination of agriculture and forestry has varied benefits, including increased biodiversity and reduced erosion.
19. Which of the following are schemes or institutes related to horticulture in India?
- National Horticulture Mission (NHM)
- Horticulture Mission for North East and Himalayan States (HMNEH)
- National Horticulture Board (NHB)
- Coconut Development Board (CDB)
- Central Institute of Horticulture (CIH), Nagaland
Select the correct option from the codes given below:
[A] 1, 2 and 3 only
[B] 1, 2, 3 and 4 only
[C] 1, 3 and 5 only
[D] 1, 2, 3, 4 and 5
Show Answer
Correct Answer: D [1, 2, 3, 4 and 5]
Notes:
The Mission for Integrated Development of Horticulture (MIDH) comprises several sub-schemes and institutions, including the National Horticulture Mission (NHM), Horticulture Mission for North East and Himalayan States (HMNEH), National Horticulture Board (NHB), Coconut Development Board (CDB), and Central Institute of Horticulture (CIH), Nagaland. All five listed are correctly associated with horticulture development in India.
20. Which option correctly defines Mariculture?
[A] Cultivation only in open ocean cages
[B] Cultivation in open rivers or freshwater
[C] Cultivation exclusively in land-based ponds
[D] Cultivation in open ocean, coastal areas, or seawater tanks/ponds
Show Answer
Correct Answer: D [Cultivation in open ocean, coastal areas, or seawater tanks/ponds]
Notes:
Mariculture refers to cultivation of marine organisms like fish, shellfish, and seaweed in marine environments such as open ocean, enclosed coastal waters, or seawater-filled tanks and ponds. Mariculture differs from freshwater aquaculture by being practiced in saline environments. Common methods include ocean cages, pens, nets, or land-based marine tanks. The Food and Agriculture Organization recognizes mariculture as part of global aquaculture production.
