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. World Investment Report is published by:
[A] International Monetary Fund
[B] World Economic Forum
[C] Organisation for Economic Co-operation and Development (OECD)
[D] United Nations Conference on Trade and Development (UNCTAD)
Show Answer
Correct Answer: D [ United Nations Conference on Trade and Development (UNCTAD) ]
Notes:
The World Investment Report has been published annually since 1991 by the United Nations Conference on Trade and Development (UNCTAD). The report focuses on trends in foreign direct investment (FDI) worldwide, at the regional and country levels and emerging measures to improve its contribution.
12. The term Financial Stability Board (FSB) is associated to which of the following organizations?
[A] G-20 Countries
[B] BRICS
[C] SAARC
[D] APEC
Show Answer
Correct Answer: A [ G-20 Countries ]
Notes:
After the global financial crisis of 2007, the G-20 has created an institution called Financial Stability Board to design sophisticated regulation measures for banks to prevent future bank failure. Beside this, the central banks of each country identify Domestic Systemically Important Banks (D-SIBs). While the Basel Committee on Banking Supervision (BCBS) started to identify big banks which are named as Global Systemically Important Banks (G-SIBs). The criteria for selecting D-SIBs are similar to that of G-SIFIs. In India, the RBI has identified SBI and ICICI as D-SIBs. The Financial Stability Board (FSB), in consultation with Basel Committee on Banking Supervision (BCBS) publishes the list of Global Systemically Important Banks (G-SIBs).
13. Which Fundamental Right in the Indian Constitution prohibits trafficking, forced labour, and children working under 14 years of age?
[A] Right to Equality
[B] Right to Freedom
[C] Right against Exploitation
[D] Right to Freedom of Religion
Show Answer
Correct Answer: C [Right against Exploitation]
Notes:
The right against exploitation prohibits all forms of forced labour, child labour and trafficking of human beings. The Right against Exploitation enshrined in the Indian Constitution guarantees dignity of the individual.
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. Which of the following is the cause of inflation?
[A] Increase in money supply
[B] Fall in production
[C] Increase in money supply and fall in production
[D] Decrease in money supply and fall in production
Show Answer
Correct Answer: C [Increase in money supply and fall in production]
Notes:
Inflation is a situation of a sustained increase in the general price level in an economy.
There are two main causes of inflation: Demand-pull and Cost-push. Both are responsible for a general rise in prices in an economy.
Cost-push occurs when supply cost force prices higher. If the inflation in an economy is of the cost-push type, then the inflationary situation usually leads to a fall in production.
Demand-pull inflation is used by Keynesian economics to describe the price levels rise because of an imbalance in the aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up.
16. To which of the following the rate of exchange of Indian rupee is linked?
[A] Dollar
[B] Sterling/Pound
[C] A basket of foreign currencies
[D] Yen
Show Answer
Correct Answer: C [A basket of foreign currencies]
Notes:
Rupee was linked to the pound sterling in December 1971. To ensure stability of the Rupee, and avoid the weaknesses associated with a single currency peg, the Rupee was pegged to a basket of currencies.
17. Which one of the following is not an instrument of selective credit control in India?
[A] Regulation of consumer credit
[B] Rationing of credit
[C] Margin requirements
[D] Variable cost reserve ratios
Show Answer
Correct Answer: D [Variable cost reserve ratios]
Notes:
The variable reserve ratio device springs from the fact that the central bank, in its capacity as Bankers Bank, must hold a part of the cash reserves of commercial banks. The customary minimum cash reserve ratio is an important limitation on the lending capacity of banks.
18. 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.
19. Which of the following are part of Gross National Product(GNP)?
[A] Imports
[B] Exports
[C] Money earned by resident abroad
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Gross National Product is the value of all finished goods and services owned by a country’s residents over a period of time.
GNP: GDP+ NR (Net receipts from abroad or inflows from abroad) – NP (Net payment outflow to foreign assets)
20. Which five-year plan has the objective of “Faster and more inclusive growth”?
[A] 10th
[B] 11th
[C] 9th
[D] 12th
Show Answer
Correct Answer: B [11th]
Notes:
The 11th Five-year plan was from 2007-12. It was prepared by the C. Rangarajan. Its main theme was “faster and more inclusive growth”.
