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 body decides the allocation of tax shares between Union and States?
[A] Parliament
[B] Finance Commission
[C] Ministry of Finance
[D] Public Accounts Committee

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12. Which tool involves central banks signaling future interest rate intentions?
[A] Forward guidance
[B] Quantitative easing
[C] Open market operations
[D] Reserve requirements

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13. What is a golden share in share market parlance?
[A] Share with highest profit from price rise
[B] Share with special voting and veto rights
[C] Share sold before market crash
[D] First share subscribed in an IPO

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14. At which HAL facility are MiG aircraft engines assembled and manufactured?
[A] Engine Division at Koraput, Odisha
[B] Engine Division at Bangalore, Karnataka
[C] Sukhoi Engine Division at Koraput, Odisha
[D] Nasik Airframe Factory, Maharashtra

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15. What does a decreasing agricultural sector share in GDP indicate for a country?
[A] The country is heading toward developed nation status
[B] The country is becoming a developing nation
[C] The country is becoming less developed
[D] Agricultural production has completely stopped

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16. What is the purpose of Ways and Means Advances scheme?
[A] to give insurance to the large corporates for their investment in abroad projects
[B] to handle the mismatch between cash flow of the receipts and payments of the State Governments
[C] to promote export oriented projects by giving interest free credit
[D] None of the above

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17. Which is a major drawback of capital-intensive industries? (UPSC Prelims 1982)
[A] High flexibility in demand adjustment
[B] Increased unemployment from automation
[C] Lower initial investment costs
[D] More worker innovation opportunities

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18. Which focus marked the Seventh Five-Year Plan’s long-term fiscal policy? (UPSC Prelims 1987)
[A] Capital formation by increasing money income
[B] Reforming the taxing system
[C] Making tax laws easily comprehensible
[D] Tackling deep-seated poverty and unemployment

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19. Which industry employs the most workers in India? (UPSC Prelims 1988)
[A] Jute
[B] Sugar
[C] Textiles
[D] Iron and Steel

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20. Which among the following has the regulatory powers to prevent recurrence of scams in Indian Capital Market? (UPSC Prelims 1995)
[A] SEBI
[B] RBI
[C] SBI
[D] SBI

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