Indian Economy MCQs

Notes:
Mixed Banking is the system in which banks undertake activities of commercial and investment banking together.

• These banks give short-term and long-term loans to industrial concerns.
• The banks appoint experts which give valuable advice on various financial issues and also help gauge the financial health of companies.
• Industries don’t have to run to different places for differential financial needs.
• They thus promote rapid industrialization.
• They may however pose a grave threat to liquidity of a bank and lead to bad debts.

Notes:
The National Housing Bank was established in 1988 under the National Housing Bank Act, 1987. It was initially a subsidiary of the Reserve Bank of India. In March 2019, RBI transferred its entire stake to the Government of India. NHB operates under the Ministry of Finance. NHB’s head office is located in New Delhi.

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.

Notes:
India accounts for about 60% of global mica production. Major mica mines are located in Andhra Pradesh, Rajasthan, and Jharkhand. India exported $38.2 million worth of mica in 2024, ranking second globally after China. Vast high-quality mica reserves contribute to India’s leading role in the mica market worldwide.

Notes:
Ranjana Kumar became the first woman to head an Indian public sector bank when she was appointed Chairman and Managing Director of Indian Bank. This made her a notable first in the history of public sector banking in India. Arundhati Bhattacharya is also a landmark figure, but she is known as the first woman Chairperson of State Bank of India, not the first woman to head any public sector bank. Hence, the correct answer is Ranjana Kumar.

Notes:
Coffee production in Brazil is responsible for about a third of all coffee, making Brazil by far the world’s largest producer. It is a position the country has held for the last 150 years. Coffee plantations, covering some 27,000 km² are mainly located in the southeastern states of Minas Gerais, Sao Paulo and Parana where the environment and climate provide ideal growing conditions. So coffee is the main reason of Brazil’s economy.

Notes:
Primary jobs involve getting raw materials from the natural environment e.g. Mining, farming and fishing. There are a lot of people who are engaged in primary occupations in an economically underdeveloped country.

Notes:
A free good is a good with zero opportunity cost. This means it can be consumed in as much quantity as needed without reducing its availability to others. For Example sunlight, ideas, music or air.

Notes:
Friedrich Hayek might be considered the poster boy for the Austrian School of Economics. Influenced and mentored by Ludwig von Mises, a prominent figure in the Libertarian movement, Hayek was awarded the Nobel Prize for Economics in 1974. While working at the London School of Economics he publicly opposed Keynes and his theories of government spending as the solution to the Great Depression, arguing instead that private investment was the path to prosperity and development. 

Notes:
Agricultural growth can influence several macroeconomic indicators. Higher farm output raises rural incomes, creates seasonal and allied-sector employment, and can help moderate food inflation by improving supply. It also affects the balance of payments through agricultural exports, reduced food imports, and foreign-exchange earnings. Therefore, among the given options, balance of payments is also directly affected, making it a relevant indicator of agricultural growth.