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 of the following is not a part of the World Bank Group?
[A] IBRD
[B] IDA
[C] MIGA
[D] UNCTAD
Show Answer
Correct Answer: D [UNCTAD]
Notes:
The World Bank Group consists of five institutions: IBRD, IDA, IFC, MIGA and ICSID. These bodies work on development finance, private-sector investment, investment guarantees and dispute settlement. UNCTAD, on the other hand, is a United Nations body that deals with trade, investment and development issues. Hence, UNCTAD is not included in the World Bank Group.
12. Who takes the decision regarding the saving and loan activities in a self Help Group (SHG)?
[A] Private Bank
[B] Reserve Bank of India
[C] Members of group
[D] Non Government Organizations
Show Answer
Correct Answer: C [Members of group]
Notes:
Self Help Groups (SHGs) are small groups of poor people. The members of an SHG face similar problems. They help each other, to solve their problems. SHGs promote small savings among their members.
13. NABARD, which is set up to provide loans for rural development, belongs to which of the following categories? (UPSC Prelims 1982)
[A] Bank
[B] Board
[C] Block
[D] Department
Show Answer
Correct Answer: A [Bank]
Notes:
NABARD stands for National Bank for Agriculture and Rural Development. It is an apex development financial institution in India. It is an institution fully owned by Government of India, headquartered at Mumbai with regional offices all over India.
14. Who benefits the most from inflation? (UPSC Prelims 1989)
[A] Creditors
[B] Debtors
[C] Savings bank account holders
[D] Government pensioners
Show Answer
Correct Answer: B [Debtors]
Notes:
Debtors benefit from inflation as they repay loans with money of reduced purchasing power. During inflation, the real burden of debt decreases. Creditors lose since repayment occurs in depreciated currency. This effect is most significant under unanticipated inflation when previous interest rates did not account for inflation rise. Debtors’ effective liability lowers, giving them a financial advantage.
15. Which goods do Middle East arid nations export to India in FY 2024-25? (UPSC Prelims 1996)
[A] Precious stones and pearls
[B] Perfume and coffee
[C] Raw wool and carpets
[D] Fruits and palm oil
Show Answer
Correct Answer: D [Fruits and palm oil]
Notes:
Arid Middle Eastern countries, like Bahrain and UAE, export fruits (notably dates, dry fruits) and edible oils (notably palm oil) to India. These are key exports due to the region’s suitable climate and agriculture, supporting India’s food security needs. FY 2024-25 trade data affirms the trend.
16. When is proportional representation less needed for fair representation?
[A] When multiple ideological groups exist
[B] When a two-party system has developed
[C] When winner-take-all systems are used
[D] When minorities are geographically dispersed
Show Answer
Correct Answer: B [When a two-party system has developed]
Notes:
Proportional representation is most useful in multiparty settings, where vote shares need to be translated into legislative seats more accurately. It is less necessary when a stable two-party system has already emerged, because each major party can usually win substantial representation under plurality-based elections. In such systems, the need to correct distortions between votes and seats is comparatively lower. Hence, a two-party system is the condition where proportional representation is less needed for fair representation.
17. When is the national Tourism day celebrated across the country?
[A] January 23
[B] January 24
[C] January 25
[D] January 26
Show Answer
Correct Answer: C [January 25]
Notes:
The national Tourism day is being celebrated in India on January 25 every year. The day is celebrated to raise awareness the global community about the importance of tourism for the country’s economy and its social, political, financial and cultural worth.
18. Which among the following is not a benefit of neem coated urea?
[A] Slow down the process of nitrogen release
[B] Enhance the yield
[C] Increase urea requirement
[D] Reduce fertilizer cost
Show Answer
Correct Answer: C [Increase urea requirement]
Notes:
Coating urea with neem oil is neem coated urea. It has various benefits like slowing down the process of nitrogen release, enhance the yield, reduce urea requirement so the cost of fertilizer is reduced.
19. Which is the largest rubber producing state in India?
[A] Tripura
[B] Kerala
[C] Karnataka
[D] Tamil Nadu
Show Answer
Correct Answer: B [Kerala]
Notes:
Kerala produces around 78% of India’s natural rubber. In 2022-23, Kerala produced about 490,960 tons of rubber. The state has favorable tropical climatic conditions with high rainfall and humidity, suitable for rubber cultivation. Plantations are mainly concentrated in Kottayam, Pathanamthitta, and Idukki districts. The Rubber Board of India is headquartered in Kottayam, Kerala.
20. Which of the following factors determine the cropping pattern?
- Rainfall
- Climate
- Temperature
- Soil type
Select the correct option from the codes given below:
[A] 1, 2 and 4 only
[B] 1, 2 and 3 only
[C] 2, 3 and 4 only
[D] 1, 2, 3 and 4
Show Answer
Correct Answer: D [1, 2, 3 and 4]
Notes:
Cropping pattern is mainly determined by rainfall, climate, temperature, and soil type, as these directly influence the suitability and yield of crops in a region. All four factors interact to decide which crops can be grown where, making each one essential for determining cropping patterns in agriculture.
