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 option defines ‘shares outstanding’ most accurately?
[A] Total shares authorized minus never issued shares
[B] Total issued shares minus treasury shares
[C] Shares held only by institutional investors and insiders
[D] All authorized shares sold to investors
Show Answer
Correct Answer: B [Total issued shares minus treasury shares]
Notes:
Shares outstanding equals total issued shares minus treasury shares. Treasury shares are shares repurchased by the company and held in its treasury. Shares outstanding are used in calculating market capitalization and earnings per share. Only shares held by external shareholders are considered outstanding. This figure changes when the company buys back or issues new shares.
12. Consider the following reports:
- Global Innovation Index
- Global Competitiveness Index
- Ease of Doing Business Index
Which of the above is/are published by the World Bank?
[A] Only 1 and 2
[B] Only 2 and 3
[C] Only 3
[D] None
Show Answer
Correct Answer: C [Only 3]
Notes:
The Global Innovation Index is published by WIPO with partners, the Global Competitiveness Index by the World Economic Forum, and only the Ease of Doing Business Index is published by the World Bank Group. Thus, among the options, only the third report is published by the World Bank. The other two are not associated with the World Bank.
13. The Financial Action Task Force (FATF) mainly combats which activity?
[A] Climate change financing
[B] Money laundering and terrorist financing
[C] Development aid management
[D] Quantum computing in finance
Show Answer
Correct Answer: B [Money laundering and terrorist financing]
Notes:
The Financial Action Task Force is an intergovernmental body established in 1989 at the G7 Summit in Paris. FATF sets international standards to prevent money laundering and terrorist financing. The organization developed 40 Recommendations as technical standards. It conducts mutual evaluations of members. FATF monitors risks and trends in global money laundering and terrorist financing.
14. Which among the following is/are correct regarding Money Market?
[A] Money Market is a market for short-term funds
[B] Maturity in this market ranging from overnight to one year
[C] The basic function of money market is to provide efficient liquidity position
[D] All of the above
Show Answer
Correct Answer: D [ All of the above ]
Notes:
The money market is a key component of the financial system. It is a market for short-term funds with maturity ranging from overnight to one year. The basic function of money market is to provide efficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc
15. Which of the following is the reason behind the release of ‘Grants-in-aid’ for states?
[A] Improving the Centre-State relationship
[B] Reducing regional imbalances
[C] Improving the development of backward areas
[D] Various development schemes
Show Answer
Correct Answer: C [Improving the development of backward areas]
Notes:
A grant-in-aid is the transfer of money from the federal government to a state government, local government or individual person for the purposes of funding a specific project or program. It is money coming from a central government for a specific project. This kind of funding is usually used when the government and parliament have decided that the recipient should be publicly funded.
16. Which of the following are part of National income?
[A] Value of all goods and services produced in a financial year
[B] An reused good sold in that financial year
[C] Service rendered by housewife
[D] None of the above
Show Answer
Correct Answer: A [Value of all goods and services produced in a financial year]
Notes:
In the calculation of national income, the value of goods and services produced in a year is added. While the value of old sold goods and the services of the housewife is not added.
17. Which Economist is the first Vice-Chairman of NITI Aayog?
[A] Araving Panagariya
[B] Amartya Sen
[C] Rajiv Kumar
[D] Arvind Subramaniyan
Show Answer
Correct Answer: A [Araving Panagariya]
Notes:
Arvind Panagariya is an Indian-American economist and a professor of economics at Columbia University, who served as the first vice-chairman of the think-tank Niti Aayog between January 2015 and August 2017.
18. Which among the following sectors work can be outsourced?
[A] Primary sector
[B] Secondary sector
[C] Tertiary sector
[D] Public sector
Show Answer
Correct Answer: C [Tertiary sector]
Notes:
The tertiary sector’s activities help in the development of the primary and secondary sectors. By itself, economic activities in the tertiary sector do not produce goods so they can be outsourced.
19. The transformation of goods from the primary sector into economic goods is known as?
[A] Input
[B] Production
[C] Output
[D] Efficiency
Show Answer
Correct Answer: B [Production]
Notes:
The transformation of raw material into a useful economic good is known as production. It is part of the secondary sector.
20. Which country is currently the world’s largest cotton exporter?
[A] India
[B] USA
[C] Brazil
[D] China
Show Answer
Correct Answer: C [Brazil]
Notes:
Brazil became the largest cotton exporter globally in 2023, surpassing the USA. Brazil’s high-yield production averages 1.8 times more than the USA. Brazil uses double-cropping of cotton following soybeans and has lower production costs. Brazil’s share of world cotton exports is projected to lead through the 2025/26 season. Its improved logistics also support this leading export position.
