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. Who publishes the annual Global Systemically Important Banks (G-SIBs) list?
[A] World Bank
[B] International Monetary Fund
[C] European Central Bank
[D] Financial Stability Board with Basel Committee
Show Answer
Correct Answer: D [Financial Stability Board with Basel Committee]
Notes:
The Financial Stability Board (FSB), in consultation with the Basel Committee on Banking Supervision (BCBS), publishes the annual list of Global Systemically Important Banks (G-SIBs). The publication is typically released each November. The FSB was established in 2009 as an international body. The BCBS was founded in 1974 to strengthen banking supervision worldwide.
12. The Unified Package Insurance Scheme aims at providing:
[A] government-backed Life insurance cover
[B] financial protection to citizens associated in agriculture sector
[C] government-backed accidental insurance cover
[D] credit linked subsidy for first-time home buyers
Show Answer
Correct Answer: B [financial protection to citizens associated in agriculture sector]
Notes:
Unified Package Insurance Scheme aims at providing financial protection to citizens associated in agriculture sector, thereby ensuring food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from financial risks. The cover will be for one full year except for Crop Insurance (which will be bi-annual separately for Kharif and Rabi seasons) renewable from year to year.
13. Which of these is not a Maharatna company as of 2026?
[A] Coal India Limited
[B] Steel Authority of India Limited
[C] Bharat Electronics Limited
[D] Hindustan Aeronautics Limited
Show Answer
Correct Answer: C [Bharat Electronics Limited]
Notes:
Bharat Electronics Limited is classified as a Navratna company. Maharatna scheme was introduced in 2010. As of 2026, there are 14 Maharatna companies including Coal India Limited, Steel Authority of India Limited, and Hindustan Aeronautics Limited. Hindustan Aeronautics Limited received Maharatna status in October 2024. Bharat Electronics Limited has not been granted Maharatna status.
14. Courier service comes under which of the following sectors?
[A] Primary
[B] Secondary
[C] Both Secondary and Tertiary
[D] Tertiary
Show Answer
Correct Answer: D [Tertiary]
Notes:
The tertiary industry is the segment of the economy that provides services to its consumers, including a wide range of businesses such as financial institutions, schools and restaurants. It is also known as the tertiary sector or service industry/sector.
15. The demand for heavy loans can lead to which situation for banks?
[A] Improved bank cost efficiency through scale economies
[B] Liquidity constraints and solvency risks for banks
[C] Reduced need for risk management systems
[D] Automatic increases in bank capital reserves
Show Answer
Correct Answer: B [Liquidity constraints and solvency risks for banks]
Notes:
Heavy loan demand can strain a bank’s available liquid assets, increasing the risk of liquidity shortfall. High loan volumes, if unmatched by equivalent growth in capital or asset quality, can adversely impact the solvency position of banks. The Basel III regulatory framework emphasizes maintenance of adequate capital buffers to absorb credit risk and liquidity shocks. Instances of aggressive loan growth have historically preceded bank distress during financial crises.
16. Which of the following markets enable new issues of equity and debt to be traded?
[A] Secondary markets
[B] Discount markets
[C] Primary capital markets
[D] Gilt repo market
Show Answer
Correct Answer: C [Primary capital markets]
Notes:
Primary capital markets are Organised markets that enable new issues of equity and debt to be traded.
17. What does low price elasticity of demand for a commodity show?
[A] Necessity of good
[B] It is luxury good
[C] It doesn’t have importance
[D] It is inferior good
Show Answer
Correct Answer: A [Necessity of good]
Notes:
Price Elasticity is the measure of the degree of responsiveness of demand for a commodity to change in its price. That means the low price elasticity is demand doesn’t change with the price. These are the necessary goods.
18. Who wrote “The Theory of Interest as Determined by Impatience to Spend Income and Opportunity to Invest It”?
[A] Alfred Marshall
[B] Milton Friedman
[C] J S Mill
[D] Irving Fisher
Show Answer
Correct Answer: D [Irving Fisher]
Notes:
Irving Fisher, a leading American neoclassical economist, published “The Theory of Interest as Determined by Impatience to Spend Income and Opportunity to Invest It” in 1930. His pioneering work analyzed interest rates, relating them to savings impatience and investment opportunities, influencing modern interest theory and macroeconomics.
19. Which of the economic system have the shortcoming of overproduction and over-exploitation of workers?
[A] Socialist system
[B] Mixed system
[C] Market system
[D] Traditional system
Show Answer
Correct Answer: C [Market system]
Notes:
In the market system or the capitalist system, there is always a risk of overexploitation of workers for the profits of the companies. A profit is the main motive of this type of economy. It also may lead to the overproduction of goods since there are no regulations. This can also be attributed to the fact that the workers have low wages and hence cannot afford to consume all the products that are being manufactured.
20. Which country is the largest producer of sugarcane globally?
[A] India
[B] China
[C] Brazil
[D] USA
Show Answer
Correct Answer: C [Brazil]
Notes:
Brazil is the world’s largest producer of sugarcane. In the 2022-23 season, Brazil produced over 715 million metric tons of sugarcane. The main cultivation areas in Brazil include São Paulo and the Central-South region. Brazil leads global sugar and ethanol exports due to its sugarcane industry size and production capacity. India ranks as the second largest sugarcane producer worldwide after Brazil.
