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 is / are correct statements about “Adopt a Heritage Scheme”?
- It is an initiative under Ministry of Culture
- Under this scheme, government has appointed private as well as public companies as “Monument Mitras” to boost heritage tourism in the country
Select the correct option from the codes given below:
[A] Only 1
[B] Only 2
[C] Both 1 & 2
[D] Neither 1 nor 2
Show Answer
Correct Answer: B [Only 2 ]
Notes:
First statement is incorrect. The “Adopt a Heritage Scheme” is an initiative under Ministry of Tourism. Second statement is correct. Under this scheme, the government has appointed private as well as public companies as “Monument Mitras” for making heritage tourism more sustainable through conservation and development. The short-listed companies, to be called Monument Mitras, are from various sectors such as hospitality, travel, and banking.
12. 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.
13. Which of the following industries is considered as “Mother of all industries”?
[A] Textile industry
[B] Coal industry
[C] Iron and steel industry
[D] Jute industry
Show Answer
Correct Answer: C [Iron and steel industry]
Notes:
The finished products of Iron and steel industries are used as raw material for other industries such as automobile and manufacturing industries. Iron and steel industry is called the mother of all industries because they need steel and iron for production, for machinery and for infrastructure.
14. What is the current minimum CRR limit set by the RBI?
[A] No Limit
[B] 3%
[C] 4%
[D] 6%
Show Answer
Correct Answer: C [4%]
Notes:
The RBI (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2026 set the minimum CRR at 4% of net demand and time liabilities. Section 42(1) of the RBI Act, 1934 empowers the RBI to prescribe CRR for scheduled banks. Before 2006, the minimum was 3%, but this was amended. The minimum 4% has remained operative as per latest RBI regulations.
15. What does financial inclusion refer to?
[A] Retail banking
[B] Access to affordable financial services for underserved individuals and businesses
[C] Financial statements
[D] Wholesale banking
Show Answer
Correct Answer: B [Access to affordable financial services for underserved individuals and businesses]
Notes:
Financial inclusion refers to providing individuals and businesses, particularly underserved groups, access to affordable financial products and services such as savings, credit, payments, and insurance. The Reserve Bank of India introduced the Financial Inclusion Policy in 2005. The Pradhan Mantri Jan Dhan Yojana was launched in 2014 to increase access to banking facilities across India.
16. Which of the following is called GDP Deflator?
[A] Ratio of nominal to real GNP
[B] Ratio of nominal to real CPI
[C] Ratio of real to nominal GNP
[D] Ratio of nominal to real GDP
Show Answer
Correct Answer: D [Ratio of nominal to real GDP]
Notes:
The GDP deflator is a measure of price inflation. It is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100. Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation
17. Which of these is a conventional source of energy? (UPSC Prelims 1987)
[A] Geothermal
[B] Coal
[C] Solar
[D] Wind
Show Answer
Correct Answer: B [Coal]
Notes:
Coal is a fossil fuel formed from plant remains over millions of years. It has been used extensively in thermal power plants. India is the second largest producer of coal as of 2023. Coal is classified as a non-renewable, conventional energy source. It primarily consists of carbon, hydrogen, oxygen, nitrogen, and sulfur.
18. Which of the following is a major shift in the 8th Five-Year Plan from its preceding ones? (UPSC Prelims 1994)
[A] the significant reduction in public sector outlays
[B] the concentration of pubic investment in infra-structural sectors
[C] major investment in agriculture with a view to promote exports
[D] major investment in sectors in which industrial sickness has been a chronic problem
Show Answer
Correct Answer: A [the significant reduction in public sector outlays]
Notes:
One of the major highlight was modernization of the industries. The plan was launched with twin objectives of alleviation of poverty and unemployment. This plan period saw launching of many flagship programmes and reduction of public sector outlays. In the 8th five year plan, growth rate achieved was 6.8% against the target of 5.6%.
19. Who is the founder of Madras School of Economics?
[A] Dr.Manmohan Singh
[B] Dr.P.C.Mahalonibis
[C] Dr.Raja Chelliah
[D] Dr.C.Rangarajan
Show Answer
Correct Answer: C [Dr.Raja Chelliah]
Notes:
The founder and Chairman of Madras School of Economics, Dr. Raja Jesudoss Chelliah was one of the top economists this country has produced.
20. Which Five-year plan introduced the state secondary education boards?
[A] 5th
[B] 3rd
[C] 2nd
[D] 4th
Show Answer
Correct Answer: B [3rd]
Notes:
During the second five-year plan State electricity boards and state secondary education boards were formed. States were made responsible for secondary and higher education. State road transportation corporations were formed, and local road building became a state responsibility.