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. What do we call the money that is lent for more than one day but less than 15 days in the call money market?
[A] Call Money
[B] Term Money
[C] Notice Money
[D] None of the above
Show Answer
Correct Answer: C [Notice Money]
Notes:
The money that is lent for more than one day and less than 15 days in the call money market is referred to as “Notice Money”. Term Money refers to Money lent for 15 days or more in the Inter Bank Market.
12. What is the primary aim of enacting the SARFAESI Act?
[A] Recovering Loans
[B] Increasing Deposits
[C] Transparent appointment of Directors
[D] Reducing Corruptions and Scams
Show Answer
Correct Answer: A [Recovering Loans]
Notes:
The SARFAESI Act allowed the creation of asset reconstruction companies (ARC) and allowed banks to sell their non-performing assets to ARCs.
13. For which of the following purpose World Bank loan is given?
[A] Make available the currency of a particular country in case of shortage
[B] Countries for sound projects for development purposes
[C] Improve the social and cultural conditions of a country
[D] None of these
Show Answer
Correct Answer: B [Countries for sound projects for development purposes]
Notes:
The World Bank provides low-interest loans, interest-free credit, and grants. It focuses on improving education, health, and infrastructure. It also uses funds to modernize a country’s financial sector, agriculture, and natural resources management.
14. What is the name given to the unemployment which occurs when workers move from one job to another job?
[A] Seasonal unemployment
[B] Frictional unemployment
[C] Technological unemployment
[D] Cyclical unemployment
Show Answer
Correct Answer: B [Frictional unemployment]
Notes:
Frictional unemployment is a type of unemployment. It is sometimes called search unemployment and can be based on the circumstances of the individual. It is time spent between jobs when a worker is searching for a job or transitioning from one job to another.
15. What is Market equilibrium?
[A] Quantity demanded greater than quantity supplied
[B] Quantity demanded less than quantity supplied
[C] Quantity demanded equal to quantity supplied
[D] Quantity demanded is same as quantity produced
Show Answer
Correct Answer: C [Quantity demanded equal to quantity supplied]
Notes:
Market equilibrium is defined by equality between quantity demanded and quantity supplied in the market. The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market.
16. Which of the following is not a feature of a mixed economy?
[A] State ownership
[B] Private property
[C] Market forces
[D] Open trade
Show Answer
Correct Answer: D [Open trade]
Notes:
In a mixed economy both private and public sector are the players. The trade in this type is opened only to a certain extent but not completely as trade restrictions exist. This is because the government has the social obligation to fulfil.
17. Which is the largest rubber producing state in India?
[A] Kerala
[B] Karnataka
[C] Assam
[D] Arunachal Pradesh
Show Answer
Correct Answer: A [Kerala]
Notes:
Rubber is an equatorial crop that requires more than 200cm of annual rainfall. The top rubber producing states are Kerala, Tamilnadu, Karnataka.
18. Who manages the distribution of food grain to poor people?
[A] Central Government
[B] State Government
[C] FCI
[D] None of the above
Show Answer
Correct Answer: B [State Government]
Notes:
State government manages the distribution of food grain to poor people. The FCI procures and maintains them but the state government take care of the distribution.
19. Which is the major export destination of Indian poultry?
[A] Oman
[B] Maldives
[C] Japan
[D] Vietnam
Show Answer
Correct Answer: A [Oman]
Notes:
The major poultry export destination of India are Oman, Maldives, Japan, Vietnam & Indonesia.
20. Which animal meat is known as white meat?
[A] Cow
[B] Buffalo
[C] Lamb
[D] Chicken
Show Answer
Correct Answer: D [Chicken]
Notes:
White meat is pale meat such as poultry, veal, and rabbit.
