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 is / are components of Internal Debt?
- Market Borrowings
- Treasury Bills
- Special securities issued to RBI
Select the correct option from the codes given below:
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: D [ 1, 2 & 3 ]
Notes:
Internal debt is that part of the total debt that is owed to lenders within the country. It is the money the government borrows from its own citizens. The government borrows by issuing the Government Bonds and T-Bills (Treasury Bills). It also includes the Market borrowings by the government. The government bonds and T-Bills are traded in the market which is also known as Gilt Market.Please note that when government borrows from the domestic sources, the increase in inflation is less in comparison to simply printing the money and increased the more liquid forms of wealth (i.e., the money supply).
12. Consider the following:
- Real Estate Investment Trust
- Railway operation
- Atomic Energy
As of now, there is no FDI in India, in which of above sector(s)?
[A] 1 Only
[B] 1 & 2 Only
[C] 1, 2 & 3
[D] None
Show Answer
Correct Answer: C [ 1, 2 & 3 ]
Notes:
FDI is prohibited in lottery, gambling, atomic energy, Real Estate Investment Trust & Railway operation.
13. Which is the most important raw material for generation of power in India?
[A] Coal
[B] Silicon
[C] Aluminum
[D] Ironstone
Show Answer
Correct Answer: A [Coal]
Notes:
In India, major proportion of power is generated from thermal sources where the main raw material used is coal. Around 83% of thermal power is generated using coal as a raw material, whereas 16% of thermal power is generated with the help of Gas and 1% of thermal power is generated with the help of Oil.
14. Banking Ombudsman is a senior official appointed by the RBI to redress customer complaint specified under which clause of the Banking Ombudsman Scheme 2006?
[A] Clause 7
[B] Clause 6
[C] Clause 8
[D] Clause 5
Show Answer
Correct Answer: C [Clause 8]
Notes:
The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services covered under the grounds of complaint specified under Clause 8 of the Banking Ombudsman Scheme 2006.
15. In a centrally planned economy, who among the following plans all the important activities in the economy?
[A] Industrialists
[B] Citizens
[C] Judiciary
[D] Government
Show Answer
Correct Answer: D [Government]
Notes:
A centrally planned economy is an economic system in which the state or government makes economic decisions rather than the these being made by the interaction between consumers and businesses.
16. Which among the following is not a part of factor of production?
[A] Land
[B] Labour
[C] Capital
[D] Wages
Show Answer
Correct Answer: D [Wages]
Notes:
The Factors of production are the inputs available to supply goods and services in an economy.
They are Land, Labour, Capital and Enterprise.
17. Who wrote the book principles of economics?
[A] Alfred Marshall
[B] Milton Friedman
[C] J S Mill
[D] None of the above
Show Answer
Correct Answer: A [Alfred Marshall]
Notes:
Principles of Economics is a leading political economy or economics textbook of Alfred Marshall (1842–1924), first published in 1890. It says The essence of economics can be reduced to three basic principles: scarcity, efficiency, and sovereignty
18. Which of the following neighbouring countries accept Indian currency as a legal tender?
[A] Bhutan
[B] Bangladesh
[C] Pakistan
[D] Myanmar
Show Answer
Correct Answer: A [Bhutan]
Notes:
The rupee is a legal tender in India and is also accepted as legal tender in neighbouring Nepal and Bhutan, both of which peg their currency to that of the Indian rupee.
19. During which five-year plan the Private sector was given priority over the public sector?
[A] 5th
[B] 7th
[C] 6th
[D] 8th
Show Answer
Correct Answer: B [7th]
Notes:
Seventh Five Year Plan from 1985 to 1990 had the objective to establish a self-sufficient economy, opportunities for productive employment. For the first time, the private sector got priority over the public sector. Socialist India started moving away from it.
20. Which of the following are different types of Mustards?
1. Mohr
2. Peeli Sarson
3. Toria
Choose the correct option from the codes given below:
[A] 1 only
[B] 1 and 3 only
[C] 2 and 3 only
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
There are 3 kinds of mustards grown in India:
1.India Mustard (Rai / Mohr locally) (Botanical name – Brassica juncea) has small and reddish-brown seeds and accounts for around 70% of total mustard production in India.
2. Mustard or Peeli (Yellow) Sarson (Brassica campestric) has thicker pods and yellowish-brown seeds with thin seed coats.
3. Rape Seed or Toria (Brassica napus) has reddish seeds and is mainly grown in Punjab.
