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. What is a golden share in share market parlance?
[A] Share with highest profit from price rise
[B] Share with special voting and veto rights
[C] Share sold before market crash
[D] First share subscribed in an IPO
Show Answer
Correct Answer: B [Share with special voting and veto rights]
Notes:
A golden share grants special voting rights and veto power over company decisions. The share is often held by the government or promoters during privatization or restructuring. The golden share can block major corporate actions regardless of the actual shareholding percentage. Golden shares have been used in countries like India and the UK for strategic interests. They are typically non-transferable and limited in duration or scope.
12. The Mutual fund is constituted under the provisions of which of the following acts?
[A] The Securities and Exchange Board Of India Act,1992
[B] RBI Act,1934
[C] Indian Trusts Act,1882
[D] Indian Registration Act,1908.
Show Answer
Correct Answer: C [Indian Trusts Act,1882]
Notes:
The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.
13. Who among the following advocated the adoption of ‘ PURA’ model to eradicate rural poverty?
[A] Dr. A.P.J. Abdul Kalam
[B] Sri Abhijit Sen
[C] Moulana Abdul Kalam Azad
[D] Prof. A.M. Patha
Show Answer
Correct Answer: A [Dr. A.P.J. Abdul Kalam]
Notes:
PURA model to eradicate rural poverty was advocated by Dr. A.P.J. Abdul Kalam, theformer president of India. In PURA model (Provision of urban amenities to rural areas) he discussed about the development of the rural development in India.
14. What do we call the funds that the banks keep with RBI as a portion of their Net Demand and Time Liabilities?
[A] Statutory Liquidity Ratio
[B] Cash Reserve Ratio
[C] Bank Rate
[D] Reverse Repo Rate
Show Answer
Correct Answer: B [Cash Reserve Ratio]
Notes:
The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India as a portion of their Net Demand and Time Liabilities (NDTL).
15. Which among the following is not an instrument of fiscal policy?
[A] Public expenditure
[B] Taxation
[C] Credit Rationing
[D] Public debt
Show Answer
Correct Answer: C [Credit Rationing]
Notes:
Some of the major instruments of fiscal policy are Budget, Taxation, Public Expenditure, Public Works, Public Debt, etc. They consist of changes in government revenues or rates of the tax structure so as to encourage or restrict private expenditures on consumption and investment.
16. How much per cent of the total assets of the company should be deployed in the infrastructure loans?
[A] 75%
[B] 60%
[C] 80%
[D] 50%
Show Answer
Correct Answer: A [75%]
Notes:
As per RBI, any non-banking financial company can be registered as an Infrastructure Finance Company, subject to minimum, 75% of the total assets of the company, should be deployed in the infrastructure loans.
17. What is output per unit of input of labor known as?
[A] Labor Productivity
[B] Production ability
[C] Capacity
[D] None of the above
Show Answer
Correct Answer: A [Labor Productivity]
Notes:
Productivity, in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of GDP to hours worked.
18. When was Tata Iron and Steel Company (TISCO) formally established and registered?
[A] 1906
[B] 1907
[C] 1908
[D] 1909
Show Answer
Correct Answer: B [1907]
Notes:
TISCO was officially established and registered on 26 August 1907 at Jamshedpur, Jharkhand by Jamsetji Tata. Renamed Tata Steel Limited in 2005, it was a pivotal venture in India’s industrialization. The first steel production started in 1912. Headquartered in Mumbai, it is part of the Tata Group.
19. Which type of crop production is provided the help of geo-informatics under Project Chaman?
[A] Cash Crops
[B] Food crops
[C] Plantation
[D] Horticulture
Show Answer
Correct Answer: D [Horticulture]
Notes:
Project CHAMAN was launched with the aim of helping the horticulture segment of Indian agriculture. This project aims to make use of the Geo-informatics to help the farmers and policy makers in the Government.
20. What is growing of trees or shrubs around or among crops known as?
[A] Agro forestry
[B] Ally cropping
[C] Forestry
[D] Multi cropping
Show Answer
Correct Answer: A [Agro forestry]
Notes:
Agroforestry is a land use management system in which trees or shrubs are grown around or among crops or pastureland. This intentional combination of agriculture and forestry has varied benefits, including increased biodiversity and reduced erosion.
