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. Which among the following require Sponsorship in Indian banking Industry?
[A] Cooperative Banks
[B] Regional Rural Banks
[C] Local Area Banks
[D] Private Banks
Show Answer
Correct Answer: B [ Regional Rural Banks ]
Notes:
Regional Rural Banks (RRBs) require sponsorship in the Indian banking industry. They were established under the RRB Act of 1976 to provide credit and develop agriculture and rural infrastructure. Each RRB is sponsored by a commercial bank, which provides financial and managerial support. This sponsorship is crucial for their operations and stability, differentiating them from cooperative banks, local area banks, and private banks, which do not require such sponsorship.
12. Global Competitiveness Report is published by_____?
[A] World Bank
[B] International Monetary Fund
[C] World Economic Forum
[D] World Trade Organization
Show Answer
Correct Answer: C [ World Economic Forum ]
Notes:
World economic forum publishes the global competitiveness report annually.
13. Consider the following:
- Subsidies come under plan expenditures of the government
- Interest Payments and debt servicing come under plan expenditures of the government
- Defence comes under plan expenditures of the government
Select the correct option from codes given below:
[A] 3 only
[B] 2 and 3
[C] 1,2 and 3
[D] None of the above are correct
Show Answer
Correct Answer: D [None of the above are correct]
Notes:
None of the above statements is correct as all the given options come under non plan expenditure of the government.
14. The Mutual fund is constituted under the provisions of which of the following acts?
[A] The Securities and Exchange Board Of India Act,1992
[B] RBI Act,1934
[C] Indian Trusts Act,1882
[D] Indian Registration Act,1908.
Show Answer
Correct Answer: C [Indian Trusts Act,1882]
Notes:
The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.
15. Which of the following countries collaborated with Bhilai Steel plant for its establishment?
[A] Britain
[B] USA
[C] Russia
[D] Japan
Show Answer
Correct Answer: C [Russia]
Notes:
The Bhilai plant and the Bokaro Steel Plant in Jharkhand were commissioned to collaborate with Russia. The agreement for constructing Bhilai plant was signed with the Soviet Union in 1955 after Indian Prime Minster Jawaharlal Nehru visited Magnitogorsk, the capital of Russian iron and steel works.
16. Which of the following is the purchase of shares and bonds of Indian companies by Foreign Institutional Investors?
[A] FDI
[B] Portfolio Investment
[C] NRI Investment
[D] Foreign Indirect Investment
Show Answer
Correct Answer: D [Foreign Indirect Investment]
Notes:
Foreign indirect investments involve corporations, financial institutions and private investors buying stakes or positions in foreign companies that trade on a foreign stock exchange.
17. What do we call the instruments of monetary policy which directly affect the quantity of money supply?
[A] Quantitative instruments
[B] Qualitative instruments
[C] Money instruments
[D] None of the above
Show Answer
Correct Answer: A [Quantitative instruments]
Notes:
The instruments of monetary policy which directly affect the quantity of money supply are called as Quantitative instruments. Example: Open Market Operations Liquidity Adjustment Facility (Repo and Reverse Repo) etc.
18. Which of the following exchange rates is the relative price of foreign goods in terms of domestic goods?
[A] Nominal
[B] Real
[C] Artificial
[D] Fixed
Show Answer
Correct Answer: B [Real]
Notes:
The real exchange rate measures the price of foreign goods relative to the price of domestic goods. Mathematically, the real exchange rate is the ratio of a foreign price level and the domestic price level, multiplied by the nominal exchange rate.
19. Which of the following correctly defines the Mixed economy?
[A] The coexistence of heavy, small scale and cottage industries
[B] The promotion of agriculture as well as cottage industries
[C] The coexistence of rich as well as poor
[D] Co-existence of public as well as private sector
Show Answer
Correct Answer: D [Co-existence of public as well as private sector]
Notes:
Mixed economy is an economic system in which both the private enterprise and a degree of state monopoly coexist. All modern economies are mixed where the means of production are shared between the private and public sectors. It is also called dual economy.
20. In which of the following products has Bangladesh emerged as the main competitor to India in the world market?
[A] Cotton garments
[B] Jute
[C] Cement
[D] Pharmaceuticals
Show Answer
Correct Answer: B [Jute]
Notes:
Jute is called the Golden Fiber of Bangladesh. Bangladesh is currently the second largest producer of jute fiber. Bangladesh falls behind its other competitors in applying recent technological advancements.
