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 sector uses the largest share of natural gas consumed in India?
[A] Fertilizers
[B] City Gas Distribution (Cooking Gas)
[C] Power Production
[D] Refineries

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12. Which of the following is generally considered the last resort in government deficit financing?
[A] Borrowing from foreign sources
[B] Borrowing from domestic sources
[C] Printing of currency (monetizing the debt)
[D] External grants

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13. According to FERA, foreign exchange includes which of the following instruments when they are expressed or drawn in Indian currency but payable in a foreign currency?
[A] Traveler's cheque
[B] Letters of credit
[C] Bill of exchange
[D] All of the above

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14. Which is India’s largest source of power generation as of 2025?
[A] Coal
[B] Solar
[C] Wind
[D] Hydropower

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15. Which steel plant was not built during the 2nd Five Year Plan?
[A] Bhilai plant
[B] Salem plant
[C] Rourkela plant
[D] Durgapur plant

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16. Which industry is the largest water consumer in India?
[A] Textiles
[B] Thermal power
[C] Paper and pulp
[D] Engineering

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17. Which of the following countries doesn’t matches to its famous tourist place?
[A] China – Great Wall of China
[B] Bhutan – Paro Taktsang
[C] Nepal – Pashupatinath Temple
[D] Sri Lanka – Padmanabhaswamy Temple

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18. What does financial inclusion primarily refer to in India?
[A] Affordable financial services
[B] Affordable ration
[C] Affordable housing
[D] Affordable education

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19. In a centrally planned economy, who among the following plans all the important activities in the economy?
[A] Industrialists
[B] Citizens
[C] Judiciary
[D] Government

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20. Who can sponsor Infrastructure Debt Funds (IDFs) in India under the RBI framework?
[A] SEBI
[B] NBFCs
[C] Cooperative societies
[D] No sponsor is required

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