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. In what form, the banks are required to maintain deposits with RBI under CRR?
[A] Cash
[B] Government Securities
[C] Gold
[D] All of the above
Show Answer
Correct Answer: A [Cash]
Notes:
Cash Reserve Ratio (CRR) is the share of a bank’s total deposit that is mandated by the Reserve Bank of India (RBI) to be maintained with the latter in the form liquid cash.
12. Which among the following is not a component of monetary policy in India?
[A] Moral suasion
[B] Public Debt
[C] Repo rate
[D] Credit Rationing
Show Answer
Correct Answer: B [Public Debt]
Notes:
The public debt is how much a country owes to lenders outside of itself. The term “public debt” is often used interchangeably with the term sovereign debt. Public debt usually only refers to national debt.
13. Opening of maximum of ATMs is an example of which of the following?
[A] Indirect marketing
[B] Direct marketing
[C] Social marketing
[D] None of these
Show Answer
Correct Answer: B [Direct marketing]
Notes:
ATMs are highly visible, easily accessible and often situated in high-footfall areas – characteristics that make them ideal for promoting brand awareness and distributing a company’s marketing communications to the widest possible audience.
14. Which tax causes a burden on the poorer section of the society?
[A] Indirect Tax
[B] Direct Tax
[C] Both Direct and Indirect Tax
[D] None of these
Show Answer
Correct Answer: A [Indirect Tax]
Notes:
Indirect taxes make the distribution of income more unequal because of their regressive effects. The poor will get taxed a higher proportion of their income than the rich, making it a regressive tax.
15. Which organisation monitors the banks in actually maintaining cash balance?
[A] State Bank of India
[B] Grameen Bank of India
[C] Reserve Bank of India
[D] None of these
Show Answer
Correct Answer: C [Reserve Bank of India]
Notes:
The cash balance that is to be maintained by scheduled banks with the RBI should not be less than 4% of the total NDTL, which is the Net Demand and Time Liabilities.
16. Which among the following is/are correct regarding Call Money?
[A] No Collateral is required in Call Money transaction
[B] It is the money lent/borrowed for maximum period of 30 days
[C] It is the money lent/borrowed for maximum period of 45 days
[D] Banks borrow primarily from customers
Show Answer
Correct Answer: A [ No Collateral is required in Call Money transaction ]
Notes:
Call money is the money lent/borrowed for maximum period of 14 days. No Collateral is required in Call Money transaction. Banks borrow primarily from the inter-bank (call money) market.
17. Who is the author of “Commodities and Capabilities”?
[A] Amartya Sen
[B] Dr. Raja Chelliah
[C] Dr. P.C.Mehalonibis
[D] Dr. C. Rangarajan
Show Answer
Correct Answer: A [Amartya Sen]
Notes:
Noble Laureate Amartya Sen Published the book Commodities and Capabilities in 1985.
18. The unemployment in agriculture to Mechanization is called?
[A] Disguised Unemplyment
[B] Technical Unemployment
[C] Structural Unemployment
[D] Seasonal Unemployment
Show Answer
Correct Answer: C [Structural Unemployment]
Notes:
The unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
19. Who is the father of the White Revolution in India?
[A] M.S.Swaminathan
[B] Verghese Kurien
[C] R.S.Sodhi
[D] Sam Pitroda
Show Answer
Correct Answer: B [Verghese Kurien]
Notes:
Verghese Kurien is known as the ‘Father of the White Revolution’ in India, was a social entrepreneur whose “billion-liter idea”, Operation Flood, the world’s largest agricultural dairy development program which made India Self sufficient in Dairy products.
20. Which sector was most affected due to the de-industrialization of the British?
[A] Jute
[B] Textile
[C] Ship building
[D] Banking
Show Answer
Correct Answer: B [Textile]
Notes:
The textile industry was the most affected due to the de-industrialization of the British. The British followed the systematic destruction of the Indian Industries. Indian textiles were banned in European markets and Indian markets were flooded with machine-made goods which destroyed the Indian industry.
