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 of the following indicates a Liquidity trap?
[A] expansionary monetary policy does not encourage economic growth
[B] open market operations results in decrease in interest rates
[C] government prefers fiscal policies over monetary policies to regulate the money supply
[D] government undergoes liquidation of the government holdings on larger-scale to reduce fiscal deficit
Show Answer
Correct Answer: A [ expansionary monetary policy does not encourage economic growth ]
Notes:
Liquidity trap is a situation when expansionary monetary policy does not increase the interest rate, income and hence does not encourage the economic growth.
12. Which organization publishes the annual World Investment Report on FDI trends?
[A] International Monetary Fund
[B] World Economic Forum
[C] OECD
[D] UNCTAD
Show Answer
Correct Answer: D [UNCTAD]
Notes:
The United Nations Conference on Trade and Development (UNCTAD) has published the World Investment Report annually since 1991. The report compiles trends and data on foreign direct investment (FDI) and operations of multinational enterprises worldwide. UNCTAD’s World Investment Report includes statistics, rankings, and analyses relevant to FDI for over 200 economies.
13. 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.
14. Which are major environmental causes of death in developing countries?
[A] Lack of safe water, pesticide use, ozone thinning
[B] Contaminated food, global warming, CFCs
[C] Polluted air, greenhouse effect, soil erosion
[D] Unsafe water, contaminated food, polluted air
Show Answer
Correct Answer: D [Unsafe water, contaminated food, polluted air]
Notes:
Unsafe water, contaminated food, and polluted air are linked to around 40% of global deaths caused by pollution in developing countries. Waterborne diseases like cholera and diarrhoea account for significant mortality, especially in children. Air pollution contributes to respiratory diseases, increasing mortality rates among children under age five. Contaminated food transmits diarrhoeal diseases and other infections, particularly in low-income regions.
15. Who is the first CEO of the New Development Bank?
[A] Arundhati Bhattacharya
[B] K V Kamath
[C] Arvind Subramaian
[D] Kaushik Basu
Show Answer
Correct Answer: B [K V Kamath]
Notes:
K.V. Kamath, was the first chief of the New Development Bank of BRICS countries, he has served as the Chairman of Infosys Limited, the second-largest Indian IT services company, and as the Non-Executive Chairman of ICICI Bank. He has been replaced by Marcos Prado Troyjo from Brazil since 7 July 2020. Marcos Troyjo was elected president of the New Development Bank on 27 May 2020.
16. What is growing of 2 crops in alternate rows known as?
[A] Relay cropping
[B] Row cropping
[C] Mixed cropping
[D] None of the above
Show Answer
Correct Answer: B [Row cropping]
Notes:
Row intercropping is cropping that involves the component crops arranged in alternate rows. The benefit of this includes the optimum utilization of land space and suppression of weeds during the juvenile stage of the main crop.
17. Which country is the largest millet producer in the world?
[A] China
[B] India
[C] Indonesia
[D] Mexico
Show Answer
Correct Answer: B [India]
Notes:
India produced over 17 million tonnes of millets in 2022. The main millet-growing states in India are Rajasthan, Maharashtra, Karnataka, Gujarat, and Uttar Pradesh. India accounts for around 40% of global millet production. The country promoted 2023 as the International Year of Millets. Major millets grown in India include jowar, bajra, and ragi.
18. Which of these is commonly classified as white meat?
[A] Beef
[B] Pork
[C] Turkey
[D] Venison
Show Answer
Correct Answer: C [Turkey]
Notes:
Turkey is classified as white meat due to its low myoglobin content. Myoglobin is an iron-containing protein more abundant in red meat from mammals such as beef and venison. Turkey, along with chicken and most poultry, is considered white meat. Pork and beef are classified as red meat. Venison, which comes from deer, is also classified as red meat because of higher myoglobin levels.
19. For which among the following reasons tank irrigation is practiced mainly in Peninsular India?
1. Undulating relief and hard rocks make it difficult to dig canals and wells
2. Most of the rivers are rainfed
3. Of compact nature of population and cultivating field
Choose the correct option from the codes given below:
[A] 1 only
[B] 1 & 2
[C] 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: B [1 & 2]
Notes:
The reasons why tank irrigation is practiced mainly in Peninsular India: The undulating relief and hard rocks create difficulties to dig canals and wells; Little percolation of rainwater due to hard rock structure and groundwater is not available in large quantities; Most of the rivers in this region are seasonal and dry up during the summer season.
20. Which irrigation method is common in the Satluj-Ganga plain areas?
[A] Canal irrigation
[B] Wells and tubewells
[C] Tank irrigation
[D] Drip irrigation
Show Answer
Correct Answer: B [Wells and tubewells]
Notes:
Wells and tubewells irrigate about 64% of India’s total irrigated area. This method is widely used in the Satluj-Ganga plains due to easy availability of groundwater. It allows for on-demand irrigation and is cost-effective. Canal irrigation covers around 30% and is mostly used in low-lying areas. Tank irrigation is predominant in peninsular India.
