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. These questions are part of GKToday’s 35000+ MCQs Bank Course in GKToday Android App
1. Which among the following is a correct definition of Dollarization?
[A] when the inhabitants of a country use US dollars in parallel to or instead of the domestic currency
[B] when the inhabitants of a country use only US Dollars instead of a domestic currency
[C] when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency
[D] None of the above
Show Answer
Correct Answer: C [when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency]
Notes:
when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency, The term is not only applied to usage of the United States dollar, but generally to the use of any foreign currency as the national currency.
2. Hang-Seng is share market index at which of the following?
[A] Shanghai
[B] Hong Kong
[C] Seoul
[D] Tokyo
Show Answer
Correct Answer: B [Hong Kong]
Notes:
The Hang Seng Index is a market-capitalization index in Hong Kong. It is used to record and monitor daily changes of the market capitalisation of largest companies of the Hong Kong and is the overall market performance in Hong Kong.
3. In which of the following WTO ministerial conferences, India formed a core group on Non Agricultural market Access (NAMA) with other developing countries such as Argentina, Brazil, Indonesia, South Africa, Philippines etc.
[A] Cancun
[B] Singapore
[C] Hong Kong
[D] Doha
Show Answer
Correct Answer: D [Doha]
Notes:
NAMA was established in DOHA convention in 2001.
4. Accession Tax is levied on which among the following?
[A] New Property
[B] Gifts and bequests received by heirs.
[C] Rented Property
[D] Purchased Lands
Show Answer
Correct Answer: B [Gifts and bequests received by heirs.]
5. Foreign Direct Investment(FDI) and Foreign Institutional Investment(FII) are distinct in terms of?
[A] FDI brings capital, technology & management and FII brings only capital
[B] FDI targets specific sectors and FII help in increasing foreign capital availability
[C] FII is considered more stable
[D] FII targets both primary and secondary market while FDI targets only primary.
Show Answer
Correct Answer: A [FDI brings capital, technology & management and FII brings only capital]
6. Which one of the following is NOT a sign of economic development?
[A] Changing structure of GDP in favour of industry
[B] Larger share of GDP coming from primary sector
[C] Larger capital inflows
[D] Institutional changes in an economy.
Show Answer
Correct Answer: C [ Larger capital inflows ]
Notes:
Larger capital inflows are not always sign of economic development.
7. The term Financial Stability Board (FSB) is associated to which of the following organizations?
[A] G-20 Countries
[B] BRICS
[C] SAARC
[D] APEC
Show Answer
Correct Answer: A [ G-20 Countries ]
Notes:
After the global financial crisis of 2007, the G-20 has created an institution called Financial Stability Board to design sophisticated regulation measures for banks to prevent future bank failure. Beside this, the central banks of each country identify Domestic Systemically Important Banks (D-SIBs). While the Basel Committee on Banking Supervision (BCBS) started to identify big banks which are named as Global Systemically Important Banks (G-SIBs). The criteria for selecting D-SIBs are similar to that of G-SIFIs. In India, the RBI has identified SBI and ICICI as D-SIBs. The Financial Stability Board (FSB), in consultation with Basel Committee on Banking Supervision (BCBS) publishes the list of Global Systemically Important Banks (G-SIBs).
8. What is the banking known as when a group of persons come together to own and control three or more independently chartered banks?
[A] Chain banking
[B] Unit banking
[C] Merchant banking
[D] None of the above
Show Answer
Correct Answer: A [Chain banking]
Notes:
Chain banking system refers to the type of banking when a group of persons come together to own and control three or more independently chartered banks.
9. 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
Show Answer
Correct Answer: B [to handle the mismatch between cash flow of the receipts and payments of the State Governments]
Notes:
Ways and means advances (WMA) is a mechanism used by Reserve Bank of India (RBI) to help the states tide over temporary mismatches in the cash flow of their receipts and payments.
10. Which of the following is true regarding BCA?
[A] BCA works for Insurance companies
[B] A BCA can provide services to only 1 bank
[C] A BCA can provide services to more than 1 bank
[D] None of the above
Show Answer
Correct Answer: C [A BCA can provide services to more than 1 bank]
Notes:
Baseline Credit Assessment. is a measure of the probability that a bank will require support to avoid default beyond the support provided by its affiliates. overview.
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