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. Where can popular tourist attractions such as Chatham Saw Mill, Wandoor Beach, Mount Harriet and Limestone Caves be found?
[A] Goa
[B] Andaman and Nicobar Islands
[C] Lakshadweep
[D] Tamil Nadu
Show Answer
Correct Answer: B [Andaman and Nicobar Islands]
Notes:
The tourist attractions mentioned, including the Chatham Saw Mill, which is one of the oldest and largest saw mills in Asia, and the scenic Wandoor Beach, along with Mount Harriet, the third highest peak in the Andamans offering stunning views, and the intrigue-filled Limestone Caves are all located in the beautiful Andaman and Nicobar Islands. This Indian Union Territory in the Bay of Bengal is rich in natural beauty and historical significance.
12. Which of the following was target in Integrated Action Plan (IAP)?
[A] Drought
[B] Terrorism
[C] Left Wing Extremism
[D] Widespread Poverty
Show Answer
Correct Answer: C [Left Wing Extremism]
Notes:
The Integrated Action Plan (IAP) is aimed at bridging the development deficit in the extremely backward areas that are affected by Left Wing Extremism.
13. 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
Correct Answer: C [ Circulating assets- stocks, cash and debts owed to the business ]
Notes:
Current Assets minus Current Liabilities is known as working capital.
14. The negotiable instruments are passed freely from one party to another almost in the same way as money. To be negotiable, the letter of credit must include a / an:
[A] conditional promise to pay on demand or at a definite time
[B] unconditional promise to pay on demand or at an indefinite time
[C] unconditional promise to pay on demand or at a definite time
[D] conditional promise to pay on demand or at a indefinite time
Show Answer
Correct Answer: A [ conditional promise to pay on demand or at a definite time ]
Notes:
To be negotiable, the letter of credit must include an unconditional promise to pay on demand or at a definite time. The LC is a document from a bank guaranteeing that a seller will receive payment in full as long as certain delivery conditions have been met. In it all parties deal in documents.
15. Which of the following bodies issues white-colour and blue-colour forms to investors?
[A] SEBI
[B] IrDA
[C] RBI
[D] NSE
Show Answer
Correct Answer: A [ SEBI ]
Notes:
White colour forms are for Resident Indian, and blue colour forms are for NRIs, Foreign Venture Capital, Investor, and Foreign Institutional Investors. These forms are issued by SEBI for investment in capital market.
16. Consider the following statements about “Adopt a Heritage” project:
- It is an initiative by the Ministry of Tourism
- The project aims to include private and public sector for development of tourist destinations in India
Which of the above statements is/are correct?
[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2
Show Answer
Correct Answer: C [Both 1 & 2]
Notes:
First statement is correct. Adopt a Heritage project is a key initiative of Ministry of Tourism in close collaboration with Ministry of Culture and Archaeological Survey of India (ASI). Second statement is correct. The project aims to entrust heritage sites to the public sector and private sector companies and individuals for the development of tourist amenities. The private, public or individual entities holding the responsibility for development of a tourist site are treated as “Monument Mitras”. The basic and advanced amenities of the tourist destinations are being provided by them. Also, they hold the responsibility to look after the operations and the maintenance of the amenities.
17. According to FERA ,Foreign Exchange includes which of the following?
[A] Traveler’s Cheque
[B] Letters of Credit
[C] Bill of Exchange expressed or drawn in Indian Currency
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
According to FERA ,1973 Foreign Exchange means Foreign Currency, which includes: Any Draft Traveller’s Cheque Letters of Credit Bill of Exchange expressed in Indian Currency but payable in Foreign Currency
18. 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.
19. Which feature distinguished the Eighth Five-Year Plan (1992-97) from earlier plans?
[A] It marked the first plan after India’s 1991 economic reforms
[B] It achieved the highest actual growth rate of 6.8%
[C] It introduced industrial delicensing and opening of economy
[D] It targeted creation of 80 million employment opportunities
Show Answer
Correct Answer: A [It marked the first plan after India’s 1991 economic reforms]
Notes:
The Eighth Five-Year Plan (1992-1997) was the first plan implemented after India introduced economic reforms in 1991. The plan focused on indicative planning, market-led economy, liberalization, privatization, and globalization. India’s membership in the World Trade Organization began in January 1995 during this plan. Previous plans were based on centralized state control and public sector dominance.
20. Who among the following receives subsidies from the government?
[A] Sellers
[B] Buyers
[C] Manufacturers
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Subsidy a negative tax when the government gives money to reduce the price. A seller receives a subsidy to reduce the price for consumers. A manufacturer receives a subsidy for inputs incurred by them. A buyer sometimes receives a direct subsidy on important essentials like gas.
