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 are the primary motives behind countries depreciating their currencies?
[A] To maintain dominance in export markets only
[B] To address trade imbalances and manage foreign currency debt
[C] To increase capital inflows and reduce inflation
[D] To boost domestic wages and employment
Show Answer
Correct Answer: B [To address trade imbalances and manage foreign currency debt]
Notes:
Currency depreciation makes exports cheaper and imports costlier, reducing trade deficits. Many developing countries use depreciation to ease repayment burdens of foreign currency debt. The Asian Financial Crisis of 1997 saw multiple countries devalue currencies to manage debt. Currency devaluation has been used by China and Argentina to address trade imbalances. Such policies are often monitored by the International Monetary Fund.
12. Which body maintains the International Harmonized System (HS) of goods?
[A] World Trade Organization (WTO)
[B] United Nations Conference on Trade and Development (UNCTAD)
[C] World Customs Organization (WCO)
[D] United Nations Statistics Division (UNSD)
Show Answer
Correct Answer: C [World Customs Organization (WCO)]
Notes:
The World Customs Organization (WCO), established in 1952 and headquartered in Brussels, Belgium, maintains and updates the Harmonized System (HS) of goods. The WCO has 185 member countries as of 2024. The Harmonized System Committee under WCO carries out revisions, usually every five years, to reflect changes in world trade, technology, and goods classification.
13. Which of the following is the situation, when there is only one buyer and one seller of product?
[A] Public monopoly
[B] Monopsony
[C] Franchised monopoly
[D] Bilateral monopoly
Show Answer
Correct Answer: D [Bilateral monopoly]
Notes:
A bilateral monopoly is a market structure consisting of both a monopoly (a single seller) and a monopsony (a single buyer).
14. 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.
15. Where is the Indian Institute of Heritage currently located?
[A] Lucknow
[B] Noida
[C] Gwalior
[D] New Delhi
Show Answer
Correct Answer: B [Noida]
Notes:
The Indian Institute of Heritage is located in Sector 62, Noida, Uttar Pradesh. The institute shifted from the National Museum premises in New Delhi to Noida in 2020. It functions as a Deemed University approved by UGC. The institute offers postgraduate and doctoral courses related to heritage, conservation, museology, and allied fields.
16. Who is the author of “End of history and the last man”?
[A] Karl Marx
[B] J.S.Mill
[C] Francis Fukuyama
[D] None of the above
Show Answer
Correct Answer: C [Francis Fukuyama]
Notes:
Francis Fukuyama is a political economist who tracks how economic, technological, and social forces facilitate as well as undercut liberal democracy. He published this in 1992. The end of history and last man is a book of political philosophy which is a satire on the events that occurred after the Cold War and fall of the soviet union in 1991.
17. Who is the author of “Poverty and Famines”?
[A] Abhijit Banerjee
[B] J.R.Harris
[C] Amartya Sen
[D] K.N.Raj
Show Answer
Correct Answer: C [Amartya Sen]
Notes:
Amartya Sen’s “Poverty and Famines”, an essay by Sen on Entitlement and Deprivation (1981) is both theoretical and applied for work. In the essay, several famines have been studied in the working of a general theoretical framework from an original angle. He examined various meanings of poverty and drew attention to the incidence of absolute and relative deprivation.
18. Who among the following prepared the National income estimate in India?
[A] Lord Rippon
[B] Dadabai Naoroji
[C] Lord Mcculay
[D] C.R.Das
Show Answer
Correct Answer: B [Dadabai Naoroji]
Notes:
Dadabhai Naoroji prepared the first estimates of National income in 1876. He estimated the national income by first estimating the value of agricultural production and then adding a certain percentage as non-agricultural production.
19. Which wool grade has the highest production in India?
[A] Coarse grade
[B] Apparel grade
[C] Export grade
[D] Carpet grade
Show Answer
Correct Answer: D [Carpet grade]
Notes:
India produces over 90% of its wool in the carpet grade category. Carpet grade wool is coarser and used mainly for making carpets and blankets. Data from the Ministry of Textiles shows that carpet grade wool dominates total production, while apparel grade is a minor share. India ranks second globally in total raw wool production after China as of 2022.
20. Which of the following breeds of cow are indigenous to India?
- Gir
- Saahiwal
- Jersey
- Rathi
Select the correct option from the codes given below:
[A] Only 1 and 3
[B] Only 2 and 3
[C] Only 1, 2 and 4
[D] 1, 2, 3 and 4
Show Answer
Correct Answer: C [Only 1, 2 and 4]
Notes:
Gir, Saahiwal, and Rathi are indigenous Indian cow breeds, widely reared in various regions of India. Jersey is a breed originally from the British Channel Island of Jersey and is not native to India. Thus, only 1, 2, and 4 are Indian breeds, while 3 (Jersey) is not.
