Indian Economy MCQs
Indian Economy Multiple Choice Questions (MCQs) for State and UPSC Civil Services Examinations. Objective Questions on Indian Economy for competitive examinations.
1. Who is the current chairman of Bank Board Bureau?
[A] Vinod Rai
[B] N. Gopalaswami
[C] Wajahat Habibullah
[D] Bhanu Pratap Sharma
Show Answer
Correct Answer: D [Bhanu Pratap Sharma]
Notes:In April, 2018, Bhanu Pratap Sharma replaced Vinod Rai as chairman of BBB.
Reference
2. The stocks of which of the following banks are not considered for calculation of “Bank NIFTY”?
[A] Kotak Mahindra Bank
[B] Punjab National Bank
[C] Yes Bank
[D] Bank of India
Show Answer
Correct Answer: D [ Bank of India ]
Notes:
The Bank Index commonly known as “NIFTY BANK” or “Bank NIFTY” was launched by India Index Service and Product Limited (IISL) in the year 2000. The index has 12 most liquid and large capitalised stocks from the banking sector which trade on the National Stock Exchange (NSE). It provides investors and market intermediaries a benchmark that captures the capital market performance of Indian Banking sector. At present (June, 2018) , these banks include HDFC Bank, Kotak bank, State Bank Of India, ICICI Bank, Axis Bank, INDUSIND Bank, Yes Bank, Bank of Baroda, RBL Bank, Punjab National Bank And Federal Bank.
3. Bank Rate is defined as the rate at which:
[A] RBI lends short term loans to commercial banks
[B] a commercial bank can lend to its customers
[C] RBI lends long term loans to commercial banks
[D] the commercial banks are able to borrow overnight funds from RBI
Show Answer
Correct Answer: C [RBI lends long term loans to commercial banks ]
Notes:
Bank rate is the rate of interest which a central bank charges on the long term loans and advances that it extends to commercial banks and other financial intermediaries.
4. Duty Entitlement Pass Book (DEPS) is an scheme of Indian Government provided to _?
[A] Exporters
[B] Importers
[C] Wholesalers
[D] Retailers
Show Answer
Correct Answer: A [Exporters]
Notes:
DEPB (Duty Entitlement Pass Book) is an export incentive scheme of Indian Government provided to Exporters in India.
5. Which of the following firms has been recently named as the world’s biggest private equity firm?
[A] Apollo Global Management LLC
[B] Blackstone Group
[C] Goldman Sachs
[D] General Atlantic
Show Answer
Correct Answer: A [Apollo Global Management LLC]
Notes:
Currently (June, 2018), Apollo Global Management LLC tops the list of the world’s top 10 private equity firms, with just under $150 billion in total private equity assets under management(AUM) for 2015. Blackstone is the world’s second biggest private equity firm.
6. Capitalism is based upon “Laissez-faire system”. What is “Laissez-faire system”?
[A] No governmental intervention
[B] Maximum governmental intervention
[C] Role of Market Forces is Minimum
[D] Limited government Intervention
Show Answer
Correct Answer: A [No governmental intervention]
Notes:
Laissez faire refers to the economic policy of letting owners of industry and business set working conditions without interference. This policy favours a free market unregulated by the government. The term comes from a French phrase that means “let do”.
7. Which among the following is a suitable term for the state of economy in which economic activity is slowing down but wages and prices continue to rise ?
[A] Inflation
[B] Deflation
[C] Skweflation
[D] Stagflation
Show Answer
Correct Answer: D [Stagflation]
Notes:
Stagflation refers to persistent high inflation coupled with high unemployment and stagnant demand /growth in economy.
High Inflation + Low Economic Growth {or conditions of recession} + Low Employment Generation = Stagflation
8. What is the equity of Reserve bank of India in National Housing Bank ?
[A] 49%
[B] 50%
[C] 75%
[D] 100%
Show Answer
9. For which of the following the term ” Paper Gold ” is used?
[A] United States Dollar
[B] Gold Reserved with International Monetary Fund
[C] United States Dollar
[D] Special Drawing Rights
Show Answer
Correct Answer: D [Special Drawing Rights]
10. For which of the following commodities Price Stabilization Fund Scheme was launched in 2003?
[A] Tea & Coffee
[B] Tea , Coffee , Rubber & Tobacco
[C] Tea, Coffee & Rubber
[D] Tea, Coffee , Rubber, Tobacco & Coconut
Show Answer
Correct Answer: B [Tea , Coffee , Rubber & Tobacco]
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