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. 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.
12. In what form do banks maintain CRR with the RBI?
[A] Cash
[B] Government Securities
[C] Gold
[D] All of the above
Show Answer
Correct Answer: A [Cash]
Notes:
CRR requires banks to hold a specified percentage of their deposits as liquid cash with RBI; no securities or gold are allowed.
13. Which group in a trophic pyramid is most delicately balanced? (UPSC Prelims 1992)
[A] Herbivore
[B] Plant
[C] Top Carnivore
[D] Small Carnivore
Show Answer
Correct Answer: C [Top Carnivore]
Notes:
Top carnivores occupy the highest trophic level. Energy transfer efficiency between levels averages around 10%. Population and biomass decrease at higher trophic levels. Top carnivore survival relies on the stability of all lower levels. Population declines at any lower level affect top carnivores first. Examples include tigers and lions in terrestrial ecosystems.
14. Which of the following is the highest milk producing breed of goat in India? (UPSC Prelims 1994)
[A] Barbari
[B] Jamnapari
[C] Black Bengal
[D] Beetal
Show Answer
Correct Answer: B [Jamnapari]
Notes:
Jamnapari is the most popular breed for commercial goat farming in India. It is also the highest milk producing breed of goat in India It is mostly found in Uttar Pradesh.
15. What is the formula for GDP Deflater?
[A] Nominal GDP + Real GDP
[B] Nominal GDP – (minus) Real GDP
[C] Real GDP/ Nominal GDP
[D] Nominal GDP/ Real GDP
Show Answer
Correct Answer: D [Nominal GDP/ Real GDP]
Notes:
The GDP deflator measures price inflation in an economy.It measures the changes in prices for all of the goods and services produced in an economy. The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying by 100.
16. Which of the following activities comes under the tertiary sector?
[A] Agriculture, dairying,forestry
[B] Manufacturing of automobiles,construction of houses
[C] Communication and banking
[D] None of the above
Show Answer
Correct Answer: C [Communication and banking]
Notes:
The service sector is concerned with the intangible aspect of offering services to consumers and businesses. It involves the retail of manufactured goods. It also provides services, such as insurance and banking.
17. Who among the following is not part of the Quinary sector?
[A] Scientist
[B] Lawyer
[C] Financial consultant
[D] Florist
Show Answer
Correct Answer: D [Florist]
Notes:
The quinary sector is the part of the economy where the top-level decisions are made. This includes the government which passes legislation. It also comprises the top decision-makers in industry, commerce, and also the education sector. Floriculture comes under Primary Sector.
18. Which of the following measures are not for the protection of workers in the unorganized sector?
[A] Government fixing minimum wages and minimmum working hours
[B] Government providing cheap loans to self employed people
[C] Government providing subsidised food and education
[D] None of the above
Show Answer
Correct Answer: D [None of the above]
Notes:
All the given options are the measures taken by the government for the protection of workers in unorganized workers. Because of the conditions in the unorganized sector, there is a need for the government to give protection to these workers.
19. In which year, the Mid-day meal scheme was launched in India?
[A] 1996
[B] 1994
[C] 1995
[D] 1997
Show Answer
Correct Answer: C [1995]
Notes:
Mid-Day Meal Scheme was launched with a view to enhancing enrolment, retention and attendance and simultaneously improving nutritional levels among children, the National Programme of Nutritional Support to Primary Education (NP-NSPE) was launched as a Centrally Sponsored Scheme on 15th August 1995.
20. Which state is the largest producer of coffee in India?
[A] Kerala
[B] Tamil Nadu
[C] Karnataka
[D] Assam
Show Answer
Correct Answer: C [Karnataka]
Notes:
Karnataka accounted for nearly 70% of India’s total coffee production in 2022-23. The major coffee-growing districts in Karnataka are Kodagu, Chikkamagaluru, and Hassan. Coffee cultivation in Karnataka began in the 17th century. The state primarily produces Arabica and Robusta varieties. Karnataka consistently ranks first in coffee output among Indian states since independence.
