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 statement about White Label ATMs is correct?
[A] ATMs owned by foreign companies
[B] ATMs owned by private ATM service providers, not banks
[C] ATMs outsourced by banks with sponsor branding
[D] ATMs owned by the government
Show Answer
Correct Answer: B [ATMs owned by private ATM service providers, not banks]
Notes:
White Label ATMs in India are owned and operated by non-banking entities authorized by the Reserve Bank of India since 2012. These ATMs do not display any bank logo and can be used by customers of any bank for basic transactions. Tata Communications Payment Solutions was the first company to set up White Label ATMs under the ‘Indicash’ brand in India.
12. Reserve Tranche Position (RTP) is a term used in context with ____?
[A] Reserve Bank of India
[B] Federal Reserve Bank (of America)
[C] World Bank
[D] International Monetary Fund
Show Answer
Correct Answer: D [International Monetary Fund]
Notes:
Reserve Tranche Position (RTP) refers to a member country’s access to its quota in the International Monetary Fund (IMF). Each member can withdraw a portion of its quota without stringent conditions, known as the reserve tranche. This mechanism allows countries to access funds quickly during balance of payments crises. The RTP is crucial for maintaining liquidity in the global economy.
13. Which among the following bodies regulated the cooperative banks in India?
[A] Reserve Bank of India
[B] Small Industries Development Bank of India
[C] National Bank for Agriculture and Rural Development
[D] National Cooperative Union of India
Show Answer
Correct Answer: A [ Reserve Bank of India ]
Notes:
As per the Cooperative Societies Act, Reserve Bank of India (RBI) regulates the cooperative banks and these are governed by the Banking Regulations Act, 1949 and the Banking Laws (Cooperative Societies) Act, 1965.
14. A country has crude birth rate of 44 and a crude death rate of 11. The number of immigrants is more than emigrants. What would be the rate of natural increase of population?
[A] 0.75%
[B] 3.3%
[C] 2.9%
[D] Can not be determined
Show Answer
Correct Answer: B [ 3.3% ]
Notes:
• Crude Birth Rate : Number of Births per 1000 population in a given year.
• Crude Death Rate : Number of Deaths per 1000 population in a given year.
• Natural Increase Rate of Population = Crude Birth Rate- Crude Death rate
15. Consider the following statements regarding the Global Hunger Index (GHI):
- The report is published annually by Concern Worldwide and Welthungerhilfe.
- Child stunting is one of the four indicators used to calculate GHI scores.
Which of the above statements is/are correct?
[A] Only 1
[B] Only 2
[C] Both 1 and 2
[D] Neither 1 nor 2
Show Answer
Correct Answer: C [Both 1 and 2]
Notes:
Both statements are correct. The Global Hunger Index is published jointly by Concern Worldwide and Welthungerhilfe, with additional academic partners as of 2024. Its score is calculated using four indicators: undernourishment, child stunting, child wasting, and child mortality. Child stunting specifically refers to low height-for-age in children under five, reflecting chronic undernutrition.
16. Open market operations (OMO):
- act as a monetary tool of RBI
- are conducted for the sale or purchase of government securities
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:
Both are correct statementsRBI conducts open market operations by selling government securities in order to maintain ample liquidity in the system.
17. Which of the following is true about NBFC?
[A] NBFC cannot accept demand deposits
[B] NBFCs cannot issue cheques drawn on itself
[C] Deposit insurance facility of DICGC is not available to depositors of NBFCs
[D] All are true
Show Answer
Correct Answer: D [All are true]
Notes:
All the three points mentioned above are true. These points differentiate NBFC and banks
18. First Five-Year Plan laid stress on which of the following sectors? (UPSC Prelims 1982)
[A] Agriculture
[B] Industry
[C] Power
[D] Uplifting of poor people
Show Answer
Correct Answer: A [Agriculture]
Notes:
The first Indian Prime Minister presented the First Five-Year Plan to the Parliament of India. The First Five-year Plan was launched in 1951 which mainly focused in development of the primary sector i.e. agriculture.
19. Which trade agreement has India finalized with the European Union recently? (UPSC Prelims 1984)
[A] Rupee trade
[B] Free Trade Agreement (FTA)
[C] Barter trade
[D] Unilateral trade
Show Answer
Correct Answer: B [Free Trade Agreement (FTA)]
Notes:
India and the European Union concluded a Free Trade Agreement in 2024. The agreement includes gradual reduction of tariffs and covers approximately $33 billion of Indian exports. The FTA provides deeper access to 144 EU services sub-sectors. The EU is India’s largest trading partner, with bilateral trade reaching $136 billion in 2024-25. The EU represents around 25% of global GDP.
20. Which sector is best described as a ‘Sunrise industry’? (UPSC Prelims 1988)
[A] Traditional agriculture
[B] Coal mining
[C] Cotton textiles
[D] Renewable energy technology
Show Answer
Correct Answer: D [Renewable energy technology]
Notes:
Renewable energy technology is classified as a sunrise industry due to its rapid growth and adoption of emerging technologies. It includes solar, wind, and other clean energy solutions. India ranked fourth globally in installed renewable energy capacity as of 2023. Government initiatives like the National Solar Mission target 175 GW of renewable energy capacity by 2022. Sunrise industries focus on innovation and future economic potential.
