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. The steel plants of Durgapur, Bhilai & Rourkela were set up under which of the following five year plans?
[A] First Five Year Plan
[B] Second Five Year Plan
[C] Third Five Year Plan
[D] Fourth Five Year Plan
Show Answer
Correct Answer: B [Second Five Year Plan]
Notes:
Second Five Year Plan of 1956 to 1961 was given Importance to an establishment of heavy industries only. The main thrust of industrial development was on iron and steel,Heavy engineering and fertilizer industries. Three new iron and steel plants were located in Bhilai, Durgapur, and Rourkela.
12. What is the minimum CRR rate that the RBI can prescribe for scheduled commercial banks under Section 42(1) of the RBI Act, 1934?
[A] No Limit
[B] 3%
[C] 4%
[D] 6%
Show Answer
Correct Answer: A [No Limit]
Notes:
Under Section 42(1) of the RBI Act, 1934, the Reserve Bank of India may prescribe the Cash Reserve Ratio for scheduled commercial banks without any statutory floor or ceiling. In other words, the law does not fix a minimum or maximum CRR rate. The actual CRR notified by RBI can change from time to time through its circulars and directions, but the enabling provision itself leaves the rate open-ended.
13. Which authority regulates CRR maintenance by scheduled banks in India?
[A] Department of Finance
[B] Department of Revenue
[C] Reserve Bank of India
[D] Banks themselves
Show Answer
Correct Answer: C [Reserve Bank of India]
Notes:
Section 42 of the Reserve Bank of India Act, 1934 mandates scheduled banks to maintain their cash reserve ratio (CRR) with the RBI. The Reserve Bank of India monitors and enforces this statutory reserve requirement on the basis of net demand and time liabilities. The minimum CRR is set by the RBI and is periodically revised. RBI issues directions and circulars related to CRR compliance.
14. Which approach involves managing crises to impact brand reputation?
[A] Public Relations Issues Management
[B] Brand Advertising Management
[C] Private Equity Issues Management
[D] None of the above
Show Answer
Correct Answer: A [Public Relations Issues Management]
Notes:
Public Relations Issues Management is a PR strategy that addresses emerging issues and crises. It guides company communication and action during critical situations. This approach maintains brand reputation and public trust by controlling information and providing timely responses during incidents. The process follows established crisis management frameworks used by organizations worldwide.
15. Which of the following is not an essential condition for perfect competition?
[A] Homogeneous products
[B] Many sellers and buyers
[C] Freedom of entry and exit
[D] None of the above
Show Answer
Correct Answer: D [None of the above]
Notes:
The essential conditions for perfect competition in a market are :
1. homogeneous products
2. many sellers and buyers
3. freedom of entry and exit
4. firms are price takers and not price makers
16. Which among the following is part of Macroeconomics?
[A] Investment of households
[B] Wages of a person
[C] How to produce good
[D] Aggregate economic activity
Show Answer
Correct Answer: D [Aggregate economic activity]
Notes:
Macroeconomics is a branch of economics that studies how an overall economy the market systems that operate on a large scale behaves. It deals with the performance, structure, behavior, and decision-making of an economy as a whole. Its features are Employment, national income, poverty etc.
17. Who is not a member of the NITI Aayog Governing Council?
[A] Chief Ministers of Delhi and Puducherry
[B] Governors of States
[C] All Chief Ministers of the states
[D] Lieutenant Governors of Union Territories
Show Answer
Correct Answer: B [Governors of States]
Notes:
The Governing Council of NITI Aayog includes all Chief Ministers of States, Chief Ministers of Delhi and Puducherry, and Lieutenant Governors of Union Territories. Governors of States are not part of the NITI Aayog Governing Council. The NITI Aayog was established on 1 January 2015. The Prime Minister of India chairs the Governing Council.
18. Which fertilizer is also known as carbamide?
[A] Potash
[B] Ammonium Phosphate
[C] Urea
[D] Ammonium Nitrate
Show Answer
Correct Answer: C [Urea]
Notes:
Urea is also called carbamide. Its chemical formula is CO(NH₂)₂. Urea was first synthesized in 1828 by Friedrich Wöhler. Urea contains about 46% nitrogen by weight. It is widely used as a nitrogen-release fertilizer globally. In India, urea is the most commonly used fertilizer for agriculture.
19. Which type of poultry farming is primarily for egg production?
[A] Broiler
[B] Layer
[C] Both
[D] None
Show Answer
Correct Answer: B [Layer]
Notes:
Layer poultry farming involves rearing hens specifically for egg production. Layers start laying eggs at about 18-19 weeks of age and continue for approximately 72 weeks. Layer breeds such as White Leghorn and Rhode Island Red are commonly used for eggs. Broiler poultry farming involves birds reared mainly for meat, not for egg-laying purposes.
20. Where is the Central Bird Research Institute located?
[A] Izzatnagar
[B] Mathura
[C] Visakhapatanam
[D] Hyderabad
Show Answer
Correct Answer: A [Izzatnagar]
Notes:
The Central Avian Research Institute of India is a research institute located at Izzatnagar near Bareilly, Uttar Pradesh state, India. It studies poultry science, including avian genetics, breeding, nutrition and feed technology, and avian physiology and reproduction, for the betterment of the Indian poultry industry.
