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 among the following was not stipulated in the Fiscal Responsibility and Budget Management (FRBM) Act, 2003?
[A] Elimination of revenue deficit
[B] Elimination of primary deficit
[C] Non-borrowing by the Central Government from RBI except in certain situations
[D] Fixing government guarantees in any financial year as a percentage of GDP
Show Answer
Correct Answer: B [Elimination of primary deficit]
Notes:
The FRBM Act, 2003 was designed to promote fiscal discipline by laying down targets such as eliminating revenue deficit, reducing fiscal deficit, and restricting direct borrowing from the RBI except in specified situations. It also provided for monitoring of contingent liabilities and related fiscal parameters. However, it did not prescribe elimination of the primary deficit as a statutory target. Therefore, option 2 is the correct answer.
12. Seema Darshan project for border tourism is located in which state?
[A] Jammu & Kashmir
[B] Rajasthan
[C] Gujarat
[D] Sikkim
Show Answer
Correct Answer: C [Gujarat]
Notes:
The Nadabet Seema Darshan Project is in Banaskantha district, Gujarat. It was inaugurated by the Union Home Minister in April 2022. The project replicates the Wagah Border retreat ceremony. Nadabet was significant during the 1971 Indo-Pakistani War. The complex includes a museum, auditorium, and displays military equipment such as tanks and aircraft. The investment for the project was Rs 125 crore.
13. Which among the following is a money market instrument of shortest tenure?
[A] Notice money
[B] Call money
[C] Near Money
[D] Term Money
Show Answer
Correct Answer: B [ Call money ]
Notes:
The call money is the short-term money market instrument where money is borrowed or lent on demand for a day. It is also known as overnight money market instrument. Intervening holidays and/or Sunday are excluded for this purpose. Thus, it is money borrowed on a day and repaid on the next working day (irrespective of the number of intervening holidays).
14. Which of the following bodies procures, distributes, exports and imports agricultural commodities?
[A] FCI
[B] NAFED
[C] NABARD
[D] All of them
Show Answer
Correct Answer: B [ NAFED ]
Notes:
NAFED is the apex body in cooperative sector and deals in procurement , distribution, export and import of selected agricultural commodities.
15. In which of the following sessions of Indian National Congress, it was stated by Congress that the object of the planning in the country has to be “Socialist Pattern” and not absolute “Socialism”, thus paving the way for a mixed economy in India?
[A] 1953 Hyderabad Session
[B] 1954 Kalyani Session
[C] 1955 Avadi Session
[D] 1956 Amritsar Session
Show Answer
Correct Answer: C [1955 Avadi Session]
Notes:
In the Avadi session of Indian National Congress in 1955 the Congress stated that object of the planning has to be “Socialist Pattern” and not absolute “Socialism”. The Socialist pattern meant that India has to be a mixed economy where private & public sector would coexist. In the same year, Imperial Bank of India, which came into being in 1921, came under the public sector and became “State Bank of India” in 1955.
16. Which state in India has the largest coal resources?
[A] Chhattisgarh
[B] West Bengal
[C] Jharkhand
[D] Odisha
Show Answer
Correct Answer: D [Odisha]
Notes:
Odisha has the largest coal resources among Indian states. According to the Ministry of Coal’s National Coal Inventory 2025, Odisha’s coal resources stand at about 100.99 billion tonnes as on 1 April 2025. This is higher than any other state, making Odisha the leading coal-bearing state in the country. Major coalfields in the state include Talcher, Ib Valley and others, which contribute significantly to India’s coal resource base.
17. Which of these is used as promise from a bank to make a payment assuming certain conditions are met?
[A] Cash Credit
[B] Over Draft
[C] Letter of Credit
[D] Term Loan
Show Answer
Correct Answer: C [Letter of Credit]
Notes:
A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.
18. Which of the following is also regarded as Disguised unemployment?
[A] Under employment
[B] Frictional unemployment
[C] Seasonal unemployment
[D] Cyclical unemployment
Show Answer
Correct Answer: A [Under employment]
Notes:
Under employment is a condition in which people in labor force are employed at less than full time or require regular job or at jobs inadequate with respect to training or economic need.
19. After which five year plan, ‘The Rolling plan’ was implemented?
[A] Third Plan
[B] Seventh plan
[C] Fifth plan
[D] Ninth Plan
Show Answer
Correct Answer: C [Fifth plan]
Notes:
Rolling Plan (1979–1980) The Janata Party government rejected the Fifth Five-Year Plan and introduced a new Sixth Five-Year Plan (1978–1980).
20. Which among the following Economic system have Barter system?
[A] Socialist
[B] Traditional
[C] Capitalist
[D] Mixed
Show Answer
Correct Answer: B [Traditional]
Notes:
Traditional economies tend to focus primarily on agriculture, cattle herding, fishing etc. A traditional economy will use the barter system and has no concept of currency or money. Their economies center around their tribes or families.
